Tyler Herro just indirectly received some really good news ahead of his October 1 extension eligibility: The Miami Heat are not as married to preserving cap space as we initially thought.
For so long, we have heard about this team’s plan to maximize flexibility both now and later. If the Heat aren’t bent on having cap space in the summer of 2026, it’s because they want to stockpile it for 2027.
Much of their current offseason has aligned with this vision. Davion Mitchell is the only player they signed or acquired who is owed guaranteed money beyond next year (first-round pick Kasparas Jakucionis notwithstanding).
Yet, according to Barry Jackson of the Miami Herald, the Heat are “open to considering signing [Norman] Powell to an extension if the start of the season goes well.” While this isn’t a definitive stance, merely considering it flies in the face of cap-space plans.
Any deal Powell inks would almost assuredly add guaranteed money to not just the 2026-27 ledger, but the 2027-28 bottom line as well. Even if he takes a salary identical to the $20.5 million he’s making now, a new contract would significantly eat into their flexibility over the next two summers. And that’s potentially great news for Tyler Herro.
Miami seems more likely to pay Tyler Herro
Starting October 1, Herro can sign an extension worth up to three years, and $150 million. For the most part, though, his prospective price tag has not mattered. The prevailing assumption is that Miami will hold off on reinvesting in Herro to maximize spending power two summers from now, when he comes off the books.
Cap preservation just about goes out the window if the Heat are willing to extend Powell. The same goes for Nikola Jovic, who can sign a post-rookie-extension prior to the start of the regular season. Putting any one of these two on the ledger past this year hints at less of a commitment to cap space, and makes it far more likely Miami and Herro can find common ground.
Whether the Heat actually re-up with their All-Star guard or decide to wait, their read on financial flexibility is accurate. Cap space is officially overrated.
Stars are not leaving via free agency anymore. The biggest names typically get relocated through trades. Cap space can help swing deals, but collecting picks and prospects goes further.
The Heat could still wait on a Herro extension
None of this means the Heat will rush to get a deal done with Herro. They can still look to extend him next summer.
Just as importantly, delaying negotiations keeps him trade-eligible through the 2025-26 campaign. If he signs an extension this fall, he in all likelihood can’t be moved for six months. That takes Miami past the February 5 trade deadline.
Exceptions to the rule exist. The Heat should absolutely explore them. They also shouldn’t be resigned to trading Herro. He is good enough to be considered a potential long-term keeper. But with their appetite for acquiring superstars still high, they may prefer to keep every scenario on the table. Extending Herro (likely) restricts them to waiting until next summer before making a big splash.
Truth be told, that’s the most likely outcome anyway. Giannis Antetokounmpo has already shut down talk about his future through this coming season. Any blockbuster moves are probably on hold for another year. And just like Miami’s apparent willingness to pay Powell, this could be excellent news for Herro’s bank account.