The Miami Heat can't afford to sign Tyler Herro to a contract extension (that he hasn't earned), and there's unlikely to be a vast trade market for him this summer. In short, with just one year left on his contract after this season, the Heat have a huge Herro problem on their hands, and there's no clear way to move forward with it.
One thing is becoming painfully obvious, though, and it's despite the possible lose-lose situation that the Heat finds themselves in, this "problem" can no longer be ignored.
As much as the Heat may want to kick this decision down the road, there's no more time for the Heat to spare. The front office has to make a quick verdict and set the preparations for how to make lemonade out of the lemons of this situation during the offseason.
What options do the Heat have with Tyler Herro?
Whether it's to trade Herro, the Heat need to start scouting the market. If the trade markets for Trae Young, Ja Morant, and Norman Powell are any indication, the Heat need to prepare to take a loss or, at best, break even. And that has to be OK with the team.
If the Heat feels the best move is to turn the page on the Herro era in Miami, the Heat can't get greedy. They need to be willing to cut their costs, even if they don't get the value they believe they should in a deal. That's the cost of doing business so late.
Heading into the offseason, unless something drastically changes in the near future, Herro's trade value is going to be as low as it's ever been. But the Heat only have themselves to blame for refusing to sell high on Herro after he made his first All-Star team last summer.
On the other hand, if the Heat does find value for Herro as a potential sixth man, or even a bridge player for the future, a contract extension can't be considered completely off the table. But it almost certainly has to come on the Heat's terms.
This past October, Herro was eligible to sign a three-year, $150 million extension. Miami clearly wasn't comfortable with such an extension, and they elected to delay those talks. With the season Herro has had, I can't imagine the Heat would offer anything closer to that.
But if they can get Herro to extend at a number close to the $30 million per year average, it's at least a conversation you'd assume they'd be willing to have.
Either way, no matter what the Heat decides, something needs to happen on the Heat front. And sooner rather than later. There needs to be a resolution one way or another for Herro this summer.