Herro, who averaged a career-high 23.9 points last season, became an All-Star for the first time while emerging as Miami’s top scoring option after the departure of Jimmy Butler. Despite his production, league insiders believe the Heat are hesitant to finalize a new contract, in part due to financial constraints and long-term roster concerns.

Herro is eligible for a three-year deal worth up to $150 million. But signing such a contract would prevent Miami from trading him until well after the February deadline. For a front office still eyeing potential superstar targets such as Giannis Antetokounmpo, that restriction could prove costly. The Heat are already navigating the salary cap with large deals for Bam Adebayo and newly extended Nikola Jovic. That leaves limited flexibility for further moves.

The Heat might not be committed to Tyler Herro as part of their future

Extending Herro would all but lock Miami into a future built around him and Adebayo. However, it’s a combination that has yet to prove capable of lifting the Heat back into contention. Without Butler’s leadership and defensive edge, Miami’s ceiling looked limited last season despite Herro’s offensive growth. The guard’s defensive struggles and recent ankle surgery have also raised questions about his long-term reliability.

Meanwhile, the Heat are unlikely to pursue extensions for Norman Powell or Andrew Wiggins, both of whom are viewed as short-term roster pieces.

Whether Miami decides to gamble on cap flexibility or long-term stability, Herro’s uncertain future stands as a defining test for the franchise’s direction. Letting him enter next summer without a deal carries risk. But so would overpaying him now. As the deadline nears, the Heat must decide whether Herro remains part of their championship vision or simply a valuable trade chip.