NBA Exec: 'Heat Are Penalized' Under New CBA Rules for Tyler Herro's 2022 Contract

The Miami Heat's decision to include bonuses in Tyler Herro's contract extension could wind up creating a cap crunch moving forward.

Under the rules of the new collective bargaining agreement, Herro's $2.5 million in unlikely bonuses count toward tax aprons, which was not the case under the previous CBA.

"The Heat are penalized for a contract signed before the new rules started," one Western Conference executive told ESPN's Tim Bontemps and Bobby Marks.

While $2.5 million is not an exorbitant sum, it can make all the difference when navigating the NBA's new tiered tax system. The Heat could reach the prohibitive second apron if they re-sign Caleb Martin this offseason. Martin is expected to hit unrestricted free agency rather than opt into his $7.1 million player option for 2024-25.

Miami is currently projected to be $4.7 million under the second tax apron. That does not leave a lot of wiggle room for Martin's raise and moves elsewhere to improve the roster. It's a virtual certainty that the Heat will explore cost-cutting trades this offseason, with Duncan Robinson and Terry Rozier being prime targets.

Jimmy Butler's future in Miami could also be on shaky ground if he pushes hard for a max contract extension.

As it stands, the Heat are far from the only team dealing with the financial ramifications of contracts signed before the new CBA went into place. The Golden State Warriors may wind up allowing Klay Thompson to move on this offseason amid a financial crunch; the CBA has certainly hindered negotiations to this point.

So while this is not a problem unique to Miami, it is one that could create a ripple effect across the roster in 2024-25.