The Miami Heat are entering the 2025-26 season in a unique position. High-scoring guard Tyler Herro is coming off a career year and now approaches a pivotal contract decision. As of October 1st, the All-Star is eligible for a three-year, $149.7 million extension, and the team must now weigh whether his proven production is worth the cost and the hit to their financial flexibility required to keep rolling out competitive rosters.

Enter Nikola Jovic. The 22-year-old forward has recently agreed to a four-year rookie extension worth $62.4M, locking him in with the team until the 2029-30 season. With Jovic secured long-term, questions arise about how Miami can land Herro an extension while balancing their core of Bam Adebayo, Andrew Wiggins and Norman Powell.

ESPN’s Shams Charania reported the extension, writing, “Miami Heat forward Nikola Jovic has agreed to a four-year, $62.4 million rookie contract extension with the franchise, Jeff Schwartz, Sean Kennedy and Jared Mucha of Excel Sports Management tell ESPN. Jovic averaged a career-high 10.7 points last season as his Heat role elevates.”

The timing of this deal indicates that Miami views Jovic as a long-term piece, and this deal shows confidence in his growth and new importance to the roster. The deal will also influence Herro’s negotiations, and the Heat need to decide quickly.

Last season, Herro played a career-high 77 games and put up 23.9 points and 5.5 assists, shooting a career-best 47.2% from the field, sometimes even taking on point guard responsibilities from Davion Mitchell and Terry Rozier.

However, he will be recovering from left ankle surgery due to an injury he suffered in the offseason. He is set to miss the start of the regular season, leaving the Heat without a reliable shot-creator and leaving a gap in the offensive talent. Last season, Miami struggled without Herro, losing all five games he missed, posting minus 8.6 points per 100 possessions with him sitting and a 12-21 record following the Jimmy Butler trade on February 2nd.

The Heat now faces a delicate balancing act. Jovic’s extension is a clear bet on their internal development. Still, with Herro now eligible for a max extension, Miami must consider how much potential development can outweigh a proven scorer whose injury might hamper him. Every salary decision has ripple effects across the roster, and the Heat now needs to do its best to avoid the apron penalties while ensuring they have enough talent to remain competitive.

Why Miami is Choosing Jovic

Miami drafted Nikola Jovic as a developmental project in 2022, but over the last few seasons, he has shown the versatility that the Heat prize. At 6’10, he has demonstrated the ability to handle the ball, stretch the floor and guard 3-5. Head coach Erik Spoelstra has yet to incorporate him in smaller lineups. Still, Jovic’s offensive ability has shown glimpses of how he can be a connective piece for Miami’s scorers while being a solid defender.

Consistency for Jovic, however, remains a work-in-progress. Over the last three years, he has missed more than half of his eligible games and was sidelined for almost half of last season due to a fractured right hand, but returned in time for the playoffs, scoring 24 points against Cleveland in Game 4.

However, Miami’s patience with their development is a franchise’s mainstay, with both Herro and Adebayo similarly eased into their roles over their first few years in the league.

The extension locks Jovic up as the primary frontcourt backup behind Adebayo and sophomore Kel’el Ware, providing spacing in lineups where either of the two slide over to center.

His presence gives Spoelstra flexibility in staggering rotations between Ware and Adebayo. Jovic, who has come off the bench for most of his career, also showed grit during media day interviews, where he expressed a desire to compete for a starting role during training camp.

Jovic now joins Paolo Banchero, Chet Holmgren, Jabari Smith Jr., and Jalen Williams as the only 2022 first-rounders who have been extended. Financially, the Heat’s deal is a bet. If Jovic becomes a high-impact, versatile player, he becomes a cornerstone for Miami’s next era.

If not, the contract is still manageable and can facilitate trades. The Heat are banking on their culture and coaching to maximize Jovic’s value and keep things consistent with their long-term roster strategy.