The latest twist in the Terry Rozier case involves the Heat
Former Miami Heat guard Terry Rozier is not expected to receive most of his $26.6 million salary from this past season, according to a motion filed Wednesday.
As Rozier awaits trial on federal charges connected to his alleged involvement in an NBA betting scheme, the paperwork titled, “Defendent Terry Rozier’s Motion to Modify Conditions of Pretrial Release” was filed in the United States District Court for the Eastern District of New York.
An arbitrator in late May ruled that Rozier breached his contractual obligations to play for the Heat, according to details included in Wednesday’s motion, and that Rozier must forfeit most of his $26.6 million salary with the Heat from this past season.
Despite Rozier being with the Heat for only one game this past season in its season-opening road loss to the Orlando Magic on Oct. 22 (he did not play in that contest) before he was arrested at the team’s Orlando hotel the next morning, Rozier was technically on the Heat’s roster for almost the entire season. Miami kept his sizable salary on the books in hopes of using his expiring salary to facilitate a trade ahead of February’s NBA trade deadline, but the Heat couldn’t find a deal and ultimately ended up waiving him in the final days of the regular season in April to open a spot on its roster for a potential playoff run.
Rozier’s salary counted toward the Heat’s payroll against the salary cap, luxury tax and aprons this past season, limiting what Miami could do to its roster throughout the course of the schedule. The fact that Rozier now needs to forfeit most of that salary does not impact the Heat since the ruling was made in the offseason, and Miami was already below the luxury tax threshold at the end of this past season.
The Heat finished last regular season in 10th place in the Eastern Conference and was eliminated in the play-in tournament before getting to the playoffs. Miami missed the playoffs this past season for the first time since 2019.
“On February 2, 2026, an arbitrator determined that the NBA’s administrative suspension required the Heat to pay Mr. Rozier’s full base salary,” according to the motion filed Wednesday by Rozier’s attorney, Jim Trusty. “Almost immediately, the NBA/Miami Heat decided against making full payments, which led to a second round of arbitration in early April. This time, the NBA’s position was that the no-contact provisions and travel limitations had rendered Mr. Rozier unable to comply with his contractual obligations.
“On May 20, 2026, the arbitrator ruled that, despite being placed on administrative leave by the NBA, Mr. Rozier’s conditions of release effectively rendered him in breach of his contractual obligation to play.”
Also until last week, Rozier had not been allowed to have contact with the Heat. That restriction has since been lifted.
“On May 29, 2026, the Government advised undersigned counsel that it would remove the Miami Heat from the no-contact list, but on June 2, 2026, the Government indicated it would not remove the Charlotte Hornets from the no-contact list,” according to the motion.
Rozier’s attorney argued in the motion that not being allowed to have contact with even one of the NBA’s 30 teams will damage any chance he has of returning to the league. Rozier, 32, will be an unrestricted free agent this offseason.
“With the NBA’s free agency process officially beginning June 30, maintaining the Hornets on the no-contact list would likely prevent him from having any opportunity to play in the NBA,” according to the paperwork filed by Trusty. “Under the current ruling of the arbitrator, an inability to play for or against the Charlotte Hornets would constitute a ‘failure to perform services’ by Mr. Rozier and substantially diminish or eliminate any chance of being contracted by an NBA team.”
Rozier has been charged with conspiracy to commit wire fraud and conspiracy to commit money laundering, and the NBA placed him on paid leave shortly after his arrest in October. He is accused of providing inside information to co-conspirators about his intentions to leave a March 2023 game early due to a foot injury while he was with the Hornets, which enabled them to place large bets on him not reaching statistical thresholds.
Rozier has pleaded not guilty to those charges.
It was revealed in March that the Hornets are sending a 2026 second-round pick to the Heat to resolve a dispute over Rozier being under NBA and federal investigation over alleged gambling when Charlotte traded him to Miami in January 2024. That pick will come at No. 41 overall in the second round on June 24.
But the Heat still owes the Hornets the first-round pick it dealt for Rozier two years ago. That first-round pick will convey to the Hornets in 2027 if it’s not a top-14 selection. If the Heat’s 2027 first-round pick is a top-14 selection, then Charlotte would receive Miami’s 2028 first-round pick regardless of where it falls in the first round.
Rozier will be arraigned on Wednesday on additional charges filed last week, including sports bribery and honest services fraud.
