The Hornets and Heat have settled their issue over who knew what regarding Terry Rozier.
On Monday, the Hornets agreed to send the Heat a 2026 second-round pick to settle the matter, which stems from Rozier’s ties to an NBA and federal gambling investigation and subsequent arrest. News of the agreement was first reported by ESPN.
As a result of the gambling probe, Rozier was arrested in October along with Trail Blazers coach Chauncey Billups and former player and coach Damon Jones. The 31-year-old has been charged with conspiracy to commit wire fraud and conspiracy to commit money laundering; each charge could carry up to 20 years in prison. He has pleaded not guilty to both charges, and his case could go to trial as early as May.
Rozier was traded from the Hornets to the Heat in Feb. 2024 for Kyle Lowry and a 2027 first-round pick that’s top-16 protected. If that pick doesn’t convey, the Heat will have a 2028 unprotected first-round pick. In Jan. 2025, The Wall Street Journal reported Rozier was under investigation for allegedly manipulating his performance while playing for the Hornets in 2023. The revelation led to a finger-pointing contest between the teams over whether Rozier’s role in the federal investigation was disclosed before the trade.
Rozier hasn’t played since the NBA placed him on leave following his arrest.
The Heat could have filed a grievance against the Hornets in an attempt to recoup capital, although it’s unclear whether the team quietly did so or whether Charlotte sent the second-round pick to Miami to prevent one from happening. Spokesmen from both the Heat and Hornets declined to comment on the situation. The NBA did not immediately respond to a request for comment.
The traded pick will be the more favorable of either Denver or Golden State’s second-round selections, according to ESPN.
In December, NBA commissioner Adam Silver said the league was exploring a way to give the Heat some “satisfactory relief” because of Rozier’s inability to play. The Louisville product is in the final year of a four-year, $96.3 million contract that pays him $26.6 million and accounts for 17% of the team’s cap space.
Despite having the ultimate authority in the NBA, Silver previously said he was unsure if Rozier was eligible to be traded while on leave.
“This is an unprecedented situation,” Silver said in December.
Rozier won an arbitration ruling against the NBA in February over a salary dispute regarding the unpaid nature of his leave, which the NBPA said violated the CBA. An arbitrator ruled in Rozier’s favor, and his salary was returned to him after it had originally been placed in escrow.
