BREAKING: Tyler Herro signs four-year, $130 million extension

The deal is reported to be $120 million guaranteed with a potential $10 million in incentives.

There it is! Tyler Herro and the Miami Heat have agreed to a four-year, $130 million extension, his agents Jeff Schwartz and Mike Lindeman of Excel Basketball first told ESPN’s Adrian Wojnarowski and the news was later confirmed by the team late Sunday.

“Tyler is an impact multi-faceted player and we are excited to have him signed for the next five years,” said HEAT President Pat Riley. “His improvement every year since we drafted him has led to this day. We believe he will continue to get better.”

Per Woj, the deal is $120 million guaranteed with a potential $10 million in incentives.

Herro, 22, was a near-unanimous winner of the league’s 2021-22 Sixth Man of the Year Award, averaging 20.7 points, 5.0 rebounds, 4.0 assists on 44.7 percent shooting — 47.7 percent on 2s — 39.9 percent from 3-point range and 86.8 percent from the free-throw line in 66 games (10 starts).

The former No. 13 overall pick is the sixth first-round pick from his own draft class to agree to a rookie extension, the others being Ja Morant, Zion Williamson, Darius Garland, R.J. Barrett and Keldon Johnson. The former three all received supermax extensions this offseason with five years tagged onto it.

Herro is still set to be paid $5.7 million in 2022-23, so his extension won’t kick in until 2023-24. With the extension, he will have significant trade restrictions until July 1, 2023, because of the poison pill provision, assuming Miami would want to trade him.

Here is the terms for the extension, per Spotrac’s estimates:

• $29,017,857 (2023-24)
• $31,339,286 (2024-25)
• $33,660,714 (2025-26)
• $35,982,143 (2026-27)

In 175 career games (33 starts), he’s averaged 16.7 points, 4.7 rebounds and 3.2 assists per game, sporting 44.0/38.5/85.1 (55.3 TS%) shooting splits with a 14.3 player efficiency rating.

Now, the Heat have two longterm building blocks — Herro and Bam Adebayo, who signed his extension prior to the 2020-21 season that kicked in last season. They join Jimmy Butler, who will be extended through 2025-26, assuming the final year of his player option is accepted by the team. The impending cap spike is nearby, so if Herro continues improving and playing up to expectation, this deal could absolutely look more team-friendly than not.

This is a breaking news story. Stay tuned for updates.