Terry Rozier wins salary dispute with NBA, Heat amid federal indictment in gambling investigation
Miami Heat guard Terry Rozier has secured a significant financial victory against the NBA and his current franchise, with an independent arbitrator ruling that he must receive his full $26.6 million salary for the 2025-26 season. The decision comes despite Rozier’s ongoing absence from the team following a federal indictment in October 2025 related to a sweeping gambling investigation.
The high-stakes dispute centered on the league’s attempt to place Rozier on unpaid administrative leave, holding his paychecks in escrow pending the outcome of his criminal case. However, the arbitrator sided with the National Basketball Players Association (NBPA), determining that under the current Collective Bargaining Agreement, the NBA lacks the authority to withhold pay for pending charges outside of specific domestic violence or child abuse policies. The ruling reinforces the union's stance that players must be afforded the presumption of innocence regarding their compensation, regardless of the severity of the allegations.
"We are pleased with the arbitrator's ruling and remain committed to ensuring Terry's due process rights are protected," the NBPA said in a statement following the decision.
The arbitration win does not absolve Rozier of his legal perils. The 31-year-old faces federal charges of wire fraud and money laundering conspiracy. Prosecutors allege that during his tenure with the Charlotte Hornets in March 2023, Rozier provided non-public information to associates, tipping them off that he would exit a game early to ensure "under" bets on his player props would cash. Rozier has pleaded not guilty and remains free on bond.
For the Miami Heat, the decision complicates an already murky week. With the NBA trade deadline looming this Thursday, the organization is now responsible for the full cap hit of a player who has not suited up this season. While the Heat are reportedly exploring trade scenarios to offload Rozier’s expiring contract—potentially as salary filler in larger deal structures—the active federal case makes him a distressed asset. Rozier has won the battle for his bank account, but his future in the league remains in jeopardy as the federal case proceeds.
The high-stakes dispute centered on the league’s attempt to place Rozier on unpaid administrative leave, holding his paychecks in escrow pending the outcome of his criminal case. However, the arbitrator sided with the National Basketball Players Association (NBPA), determining that under the current Collective Bargaining Agreement, the NBA lacks the authority to withhold pay for pending charges outside of specific domestic violence or child abuse policies. The ruling reinforces the union's stance that players must be afforded the presumption of innocence regarding their compensation, regardless of the severity of the allegations.
"We are pleased with the arbitrator's ruling and remain committed to ensuring Terry's due process rights are protected," the NBPA said in a statement following the decision.
The arbitration win does not absolve Rozier of his legal perils. The 31-year-old faces federal charges of wire fraud and money laundering conspiracy. Prosecutors allege that during his tenure with the Charlotte Hornets in March 2023, Rozier provided non-public information to associates, tipping them off that he would exit a game early to ensure "under" bets on his player props would cash. Rozier has pleaded not guilty and remains free on bond.
For the Miami Heat, the decision complicates an already murky week. With the NBA trade deadline looming this Thursday, the organization is now responsible for the full cap hit of a player who has not suited up this season. While the Heat are reportedly exploring trade scenarios to offload Rozier’s expiring contract—potentially as salary filler in larger deal structures—the active federal case makes him a distressed asset. Rozier has won the battle for his bank account, but his future in the league remains in jeopardy as the federal case proceeds.
