The move locks in the third-year option on Herro’s rookie contract, ensuring that he’ll earn $4MM a year from now. He’s set to earn $3.82MM in 2020/21. Miami will have to make a decision on his $5.72MM fourth-year option for ’22/23 next fall.
Rookie scale team option decisions for ’21/22 are due by December 29. Not every former first-round pick will have his third- or fourth-year option exercised this month, but in cases like Herro’s, picking up that option is a mere formality.
Herro, who will turn 21 in January, earned a spot on the NBA’s All-Rookie Second Team last season, averaging 13.5 PPG on .428/.389/.870 shooting in 55 games (27.4 MPG). He elevated his game to a new level in the postseason, recording 16.0 PPG, 5.1 RPG, and 3.7 APG in 33.6 minutes per contest as the Heat came within two wins of a title.