The Miami Heat have yet to receive clarity from the NBA about whether Terry Rozier can be “utilized to balance a potential trade for salary-cap purposes,” according to Ira Winderman of the South Florida Sun Sentinel.
Terry Rozier Was Indicted On Federal Gambling Charges
When Winderman contacted the NBA to ask about Rozier’s contract, the NBA declined to state whether the Heat are banned from including Rozier’s salary in a trade.
This report comes roughly a month after Rozier was indicted on federal gambling charges and two weeks after the league moved to withhold his salary in an interest-bearing account.
Per Spotrac, Rozier is owed $26.6 million this season, with $24.9 million guaranteed. This is part of the four-year, $96.2 million contract extension he signed with the Charlotte Hornets in August 2021.
His salary, however, is now being held in escrow, per ESPN’s Shams Charania. If Rozier is cleared and allowed to return to the NBA, he would receive the held payments in full.
Winderman noted that league rules require matching salaries in deals to help facilitate trades. This depends on where teams stand against the salary cap and luxury tax.
Rozier has been placed on NBA leave, and his arraignment is scheduled for next month in Brooklyn.
Because of the timetable of the federal prosecution of Rozier, it is doubtful the former first-round pick would be able to return before the expiration of his contract at the end of the season.
Heat Could Recoup Rozier’s 2025-26 Salary
A source close to Winderman said it is possible that “Rozier’s entire 2025-26 salary is forfeited, with the Heat recouping the entire cash amount, even if not able to utilize the salary-cap space in the interim.”
Everything will get more complicated from there.
The Heat wouldn’t be able to enter trade negotiations or structure a deal with a given team until a league ruling about whether a deal involving Rozier’s salary would be approved.
Although Rozier’s salary is frozen and he also continues to count toward the limit of 15 players under standard contract, the Heat will be able add a player at the prorated veteran minimum in mid-December and remain under the luxury tax.
Shortly after the findings in the federal gambling probe were released, the National Basketball Players Association (NBPA) announced it would appeal the NBA’s decision to withhold payments from Rozier while being placed on administrative leave.
In 64 games (23 starts) last season, Rozier averaged 10.6 points, 3.7 rebounds, 2.6 assists, and 25.9 minutes per contest while shooting 39.1% from the field and 29.5% from 3-point territory.
The 2026 NBA trade deadline is Feb. 5.
