The Heat are operating in something of a middle ground, competitiveness-wise, in their first full season of the post-Jimmy Butler era. They were able to land Norman Powell via trade while sending out Kevin Love and Kyle Anderson, who were unlikely to play major roles for the team, but have otherwise had a quiet offseason.
However, there are still some big decisions to be made, as Ira Winderman explores for the South Florida Sun Sentinel (subscriber link). Tyler Herro, who recently underwent ankle surgery, is extension-eligible, as are Powell and Nikola Jovic.
Winderman writes that the window for the Heat and Herro to come to an agreement is short, lasting from this coming Wednesday until October 20. If a deal isn’t reached, Herro will become an unrestricted free agent next summer. Herro is coming 
off his first All-Star selection after averaging a career-high 23.9 points and 5.5 assists while playing a career-high 77 games.
A maximum extension for Herro would come out to three years and $149.8MM. While Herro has been a productive, hard-working player throughout his time in Miami, Winderman notes that the team has always appeared more committed to Bam Adebayo as a cornerstone than Herro.
Ultimately, Winderman predicts that unless Herro budges off his max number, the two sides will not reach an agreement before the extension deadline. However, he believes that there will be plenty of willingness to find a deal that works for both sides if and when Herro hits free agency.
When it comes to Jovic, Winderman notes that there’s little argument for him commanding anything in the range of Herro or Adebayo, but that locking in guaranteed long-term money somewhere in the mid-level range, such as a deal worth between $50-60MM over four years, could hold value for both sides.
Jovic would get security with the team and not have to risk restricted free agency, which has a tendency to squeeze less-established young players, and if he can prove himself to be a fifth starter or even one of the first players off the bench, the deal would likely be looked at as a valuable contract from the team’s perspective.
Finally, there’s Powell.
The Heat have been relatively clear about their desire to clear cap space for the 2026 offseason, and Powell is by no means a seamless fit next to Herro in the backcourt, assuming both were to start, which is not guaranteed. There’s also the locker-room issue of potentially signing Powell to an extension while not signing Herro, which could rankle the Heat lifer.
These signs point Winderman to leaning no on a Powell extension, unless the Heat extend or trade Herro.
However, Winderman notes that should Powell break out for the team with Herro recovering from surgery, that would improve his chances of landing a long-term deal. This matches previous reporting from Miami Herald writer Barry Jackson, which indicated that the Heat would be open to the possibility of an extension if Powell starts the season well.