Heat rumors: Normal Powell ticketed for $25 million a year salary as Tyler Herro debate rages

The Miami Heat face a pivotal offseason after a 127-126 Play-In loss to the Charlotte Hornets ended their 2025-26 campaign Tuesday night, with new reporting pointing to a potentially costly decision between Norman Powell and Tyler Herro.

According to ClutchPoints NBA insider Brett Siegel, Powell is expected to command more than $25 million annually on his next contract, a projection shaped by both his recent production and the limited strength of the upcoming free-agent class.

“Given how weak this year’s free agent class is expected to be, as well as his back-to-back years of averaging over 20 points per game while shooting over 47% from the floor and 38% from 3-point range both seasons, Powell is expected to generate a market exceeding $25 million in annual average value on his next contract,” Siegel wrote.

Powell, 32, delivered a career-best season in his first year with Miami. He averaged 21.7 points, 3.5 rebounds, 2.5 assists and 1.1 steals per game while shooting 47% from the field, 38% from three-point range and 82.7% from the free-throw line across 58 games, including 52 starts. He logged 29.6 minutes per contest and earned his first All-Star selection.

Norman Powell, Tyler Herro contract timelines fuel potential Heat backcourt shakeup

Siegel outlined a broader organizational question surrounding Miami’s backcourt, particularly with both Powell and Herro playing central roles in the team’s offensive structure.

“One of the major changes that could be coming to the Heat in the offseason revolves around Herro and Powell,” Siegel reported. “Both guards have been essential to Miami’s offense, for different reasons.”

Contract timelines add urgency to the decision, as Siegel detailed in his report. Herro is entering the final year of his deal at $33 million after not receiving an extension offer before the start of the 2025-26 season. Powell, meanwhile, has completed the final year of his $20.5 million contract after being acquired from the Los Angeles Clippers and will enter unrestricted free agency.

“The main reason why there could be a significant change with Herro and Powell alongside Adebayo is due to their contract situations,” Siegel wrote.

“Herro, who did not receive a contract extension offer from the Heat before the start of the 2025-26 season, will be entering the final year of his contract at $33 million. Powell, who was traded to Miami from the Los Angeles Clippers in the offseason, just finished the final year of his contract at $20.5 million and will be entering unrestricted free agency.”

Powell’s efficiency vs. Herro’s impact shapes Miami’s decision around Bam Adebayo

Performance metrics further complicate the evaluation, another point emphasized by Siegel. Powell ranked 14th in scoring among guards who played at least 50 games and finished fifth in three-point percentage within that group. His efficiency surpassed several high-paid guards, including Desmond Bane, Jalen Suggs and CJ McCollum, all of whom earn more than $30 million annually.

“When comparing Powell and Herro to one another, the veteran’s impact has Miami in a better position to win games,” Siegel noted. “With Herro on the court, the Heat had a negative efficiency differential, and Miami’s expected win total was higher when he didn’t play, according to Cleaning the Glass.”

“For the season, Herro averaged -1.1 in plus-minus, whereas Powell averaged +0.7 in plus-minus,” Siegel added.

Team results reflected the uneven fit. Miami finished 43-39, securing the No. 10 seed in the Eastern Conference, but posted a 7-14 record when Powell and Herro shared the floor.

“As good as Herro is, he has become extremely expendable to Miami with immediate change on the horizon entering the summer,” Siegel concluded.

With Bam Adebayo anchoring the roster, the Heat now face a critical decision on whether to invest heavily in Powell’s efficiency and veteran production or recalibrate around Herro’s long-term upside as financial pressures mount.

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