On Monday, Miami Heat guard Tyler Herro signed a four-year contract extension with the team worth $130 million. According to sources, $120 million is fully guaranteed. But the deal also includes $10 million in incentives.
Tyler Herroβs contract incentives include $1 million for winning MVP, $1 million for winning Defensive Player of the Year, $1 million for earning an All-NBA First-Team selection, $1 million for receiving an All-NBA Second-Team selection, and $500,000 for earning an All-NBA Third-Team selection.
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Tyler Herro’s Incentives:
β’ $1M if he wins MVP
β’ $1M if he wins DPOY
β’ $1M if he earns All-NBA 1st Team
β’ $1M if he earns All-NBA 2nd Team
β’ $500K if he earns All-NBA 3rd Team*Must play in 75% of Regular Season Games
*Incentives are capped at a max of $2.5M per seasonβ Anil Gogna (@AnilGognaNBA) October 4, 2022
Furthermore, the third-year guard must play in 75% of regular season games. Barring a major injury, Tyler Herro should have no problem appearing in 62 games. Plus, incentives are capped at $2.5 million per season.
While winning DPOY is a long shot, even if he wins the award and receives an All-NBA honor, the most he can earn in added bonuses each season is $2.5 million.
Tyler Herroβs $10 million in incentives with Heat are based on games played and All-NBA honors
It should also go without saying that if Herro wins MVP and DPOY in the same season, heβll receive an All-NBA First-Team selection as well. The strange wording is based on salary cap regulations within the CBA.
Of course, Herroβs $5,722,116 team option was exercised for the 2022-23 season on September 3, 2021. This is part of the rookie scale contract he signed with the Heat in 2019.
Heat president Pat Riley released this statement on Herroβs multi-year deal: βTyler is an impact multi-faceted player and we are excited to have him signed for the next 5 years.Β His improvement every year since we drafted him has led to this day. We believe he will continue to get better.β
Head coach Erik Spoelstra also commented on Herroβs re-signing. βIt is gratifying for everybody involved,β said Spoelstra. βEverybody in our organization, for Tyler, his family, his representation.β
Last season, in 66 appearances,…