Heat Must Pay Terry Rozier While on Leave

Terry Rozier will be paid his NBA salary after all. 

On Monday, an arbitrator ruled in favor of Rozier over the NBA. The league had put him on unpaid leave after his arrest in a federal gambling case last year.

“Terry won today under principles of contract law and the Collective Bargaining Agreement between the league and the players, but the bigger principle at issue is the presumption of innocence,” Rozier’s attorney, Jim Trusty, said in an email to Front Office Sports. “Today’s arbitration ruling reminds the NBA that they can’t ignore that important concept just because it’s a high-profile case.”

Rozier was arrested in October along with Trail Blazers coach Chauncey Billups and former player and coach Damon Jones as part of a federal gambling probe. He 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. 

When he was arrested, Rozier was in the final year of a four-year, $96.3 million contract he signed with the Hornets in 2021. He was traded to Miami in January 2024 for Kyle Lowry and a 2027 draft pick. Rozier is on the Heat’s cap sheet for $26.6 million this season; $25 million of that salary is guaranteed. The NBA and Heat agreed to hold Rozier’s salary in escrow while the case was in arbitration. It will now be released to Rozier. 

“We are pleased with the arbitrator’s ruling and remain committed to ensuring that Terry’s due process rights are protected and that he is afforded the presumption of innocence throughout this process,” an NBPA spokesman said in a statement to FOS. 

The arbitrator found that the NBA’s CBA prevents players from being put on unpaid leave except for cases involving child abuse, and domestic violence, according to ESPN. 

Rozier has made about $162 million over his 10-season career.

Federal authorities allege Rozier told his childhood friend, Deniro Laster, that he would pretend to be hurt in a March 2023 game while he was playing for the Hornets and “prematurely remove himself from the game in the first quarter.” Rozier was not listed on the Hornets’ injury report for the game. Laster—who was also charged in November—sold the inside information to gamblers then bet the under on Rozier’s statistics, according to the indictment. 

Rozier was placed on unpaid leave shortly after his arrest in October, which the NBPA quickly contested. 

The players’ union ripped the league’s move in October and said it was in violation of rules collectively bargained with players.

According to Exhibit F–7 of the NBA CBA, which touches on administrative leave, any player on leave “shall be ineligible to play in any of his team’s games. However, the player will continue to receive his salary and other welfare benefits to which he would be entitled as an active player.”

If Rozier is found to have violated NBA rules, NBA commissioner Adam Silver could ban him from the league, which could immediately remove him from the Heat’s payroll and stop his salary from counting against the cap. The Heat currently have a payroll of $186 million, according to Spotrac, which is $1.6 million below the luxury tax. 

Jontay Porter was banned from the league in April 2024 after an investigation found he wagered on NBA games, gave injury information to gamblers, and manipulated his availability for betting purposes.  

Rozier has pleaded not guilty and his attorney has denied any wrongdoing by his client. Trusty has called the government’s case against Rozier “limited” and filed a motion to dismiss the case in December. 

“The indictment alleges something less headline-worthy: that some bettors broke certain sportsbooks’ terms of use against wagering based on non-public information and ‘straw betting,’” Trusty wrote in the filing. 

The ruling comes three days before the Feb. 5 trade deadline. In December, Silver wouldn’t say if the Heat could move Rozier’s contract in a trade.

“This is an unprecedented situation,” Silver said. “I think I’m incredibly sympathetic to the Heat and to their fans. But I think we’re going to try to work something through, work this out with them. But there’s no obvious solution here. I would just say that there’s no doubt at the moment they have a player that can’t perform services for them. And as to the draft pick they conveyed—obviously he hasn’t been convicted of anything yet, either, but this is an unfortunate circumstance.” 

The Heat and NBA did not immediately respond to requests for comment.