Fight over Terry Rozier's salary goes to a hearing on Wednesday
The legal battle surrounding Miami Heat guard Terry Rozier and his withheld compensation is set to reach a pivotal juncture this week. On Wednesday, an arbitration hearing will determine the immediate fate of Rozier’s $26.6 million salary, which the NBA placed into an interest-bearing escrow account following his indictment on federal charges earlier this season.
The dispute centers on the NBA’s decision to place Rozier on unpaid administrative leave in October following his arrest as part of a federal gambling investigation. The National Basketball Players Association (NBPA) promptly filed a grievance, arguing that withholding Rozier’s pay violates the collective bargaining agreement and the legal presumption of innocence. While the league maintains the authority to suspend pay during criminal proceedings under certain "integrity of the game" clauses, the union contends that Rozier should continue to receive his bi-weekly checks while the legal process plays out.
Rozier, who has pleaded not guilty to charges of conspiracy to commit wire fraud and money laundering, is accused of providing inside information regarding his availability for a March 2023 game while playing for the Charlotte Hornets. Prosecutors allege this information was used by associates to place prop bets on Rozier hitting the "under" on specific statistical markers.
The outcome of Wednesday’s hearing has significant implications for the Miami Heat. The organization will reportedly have representation present at the arbitration, as the ruling could impact their roster management ahead of the January 7 contract guarantee deadline. Currently, the Heat are operating just below the luxury tax apron. If the arbitrator rules that Rozier’s salary must be paid out actively rather than held in escrow, it complicates Miami's ability to potentially waive the guard or restructure his deal to open up a roster spot.
While Rozier’s criminal trial is not expected to resume until March 2026, this week’s financial ruling will set a major precedent regarding how the league handles compensation for players facing serious off-court legal battles. For now, Rozier remains away from the team, with his financial future in the hands of an independent arbitrator.
The dispute centers on the NBA’s decision to place Rozier on unpaid administrative leave in October following his arrest as part of a federal gambling investigation. The National Basketball Players Association (NBPA) promptly filed a grievance, arguing that withholding Rozier’s pay violates the collective bargaining agreement and the legal presumption of innocence. While the league maintains the authority to suspend pay during criminal proceedings under certain "integrity of the game" clauses, the union contends that Rozier should continue to receive his bi-weekly checks while the legal process plays out.
Rozier, who has pleaded not guilty to charges of conspiracy to commit wire fraud and money laundering, is accused of providing inside information regarding his availability for a March 2023 game while playing for the Charlotte Hornets. Prosecutors allege this information was used by associates to place prop bets on Rozier hitting the "under" on specific statistical markers.
The outcome of Wednesday’s hearing has significant implications for the Miami Heat. The organization will reportedly have representation present at the arbitration, as the ruling could impact their roster management ahead of the January 7 contract guarantee deadline. Currently, the Heat are operating just below the luxury tax apron. If the arbitrator rules that Rozier’s salary must be paid out actively rather than held in escrow, it complicates Miami's ability to potentially waive the guard or restructure his deal to open up a roster spot.
While Rozier’s criminal trial is not expected to resume until March 2026, this week’s financial ruling will set a major precedent regarding how the league handles compensation for players facing serious off-court legal battles. For now, Rozier remains away from the team, with his financial future in the hands of an independent arbitrator.
