NBA free agent Terry Rozier will have to return a large part of his $26.6 million salary for the 2025-26 season due to violating the obligations in his contract with the Miami Heat. An arbitrator made the decision in a case related to the ongoing sports betting investigation.
The decision was based on the assessment that Rozier’s release conditions in the criminal case effectively violated the agreement he made with the Heat. Rozier denied the allegations in the betting investigation and declared his innocence.
Release conditions were decisive
The court prohibited Rozier from contacting players, coaches, and medical staff on the Heat and Charlotte Hornets rosters. Travel restrictions were also imposed. The arbitrator ruled that these conditions prevented Rozier from fulfilling his obligation to play for the Heat.
The same arbitrator had ruled earlier this year that the league management must pay Rozier’s full salary this season because it did not allow the Heat to place Rozier on unpaid leave. However, Rozier’s lawyer Jim Trusty said the team almost immediately stopped making payments, and a new arbitration process began in early April.
Lawyer requested lifting the Hornets ban
In a motion submitted on Wednesday, Trusty requested that Hornets staff also be removed from Rozier’s contact ban list. He argued that this change could preserve Rozier’s chance to find a new contract in the NBA during the free agency period that started this month.
According to the lawyer, federal prosecutors removed Miami roster names from this list after releasing the Heat player, but the same step was not allowed for the Hornets.
"Not being able to play would be a big loss"
Trusty wrote that the current decision would count Rozier’s inability to play against or for the Charlotte Hornets as "failure to provide service," which would seriously reduce his chances of getting a new NBA contract.
A spokesperson for the U.S. Attorney’s Office for the Southern District of New York did not comment on the request to change the contact ban. The NBA, Heat, and Hornets also did not immediately respond to requests for comment on Wednesday.
Charges in betting case increased
Rozier was tried in October on charges of conspiracy to commit wire fraud and conspiracy to commit money laundering and declared his innocence. Last week, federal prosecutors added additional charges to the case, including sports bribery and honest services fraud conspiracy.
According to a superseding indictment prepared by a federal grand jury in Brooklyn, Rozier accepted a $100,000 bribe in March 2023 in exchange for informing a group placing bets about his plan to leave a game early due to injury while playing for the Hornets.
Trusty stated that Rozier is scheduled to appear before a judge again next week due to the new charges and will once again declare his innocence.