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Arbitrator rules in favor of Terry Rozier: What ruling means for Miami Heat

February 2, 2026
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The Miami Heat just got some good news. Terry Rozier, too.

The franchise had been waiting on a ruling about the contract status of Rozier, whose 2025-26 salary had been placed in escrow after he was arrested Oct. 23 for his alleged role in an insider sports-betting scheme.

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But on Monday, Feb. 2, an arbitrator ruled in favor of Rozier and the National Basketball Players Association (NBPA), dictating that his salary should be paid in full.

“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 spokesperson texted USA TODAY Sports.

What does this mean for the Miami Heat and their trading strategy?

This carries significant implications for Rozier and the Heat in the trading market.

For one, Rozier is on an expiring deal, which can be attractive to teams that are looking to clear up cap space for the following fiscal year. And since Rozier’s salary is substantial, he suddenly becomes a potential asset that could be used in a trade. So as the Heat remain engaged in conversations with the Milwaukee Bucks over a potential Giannis Antetokounmpo deal, Rozier could eventually become part of that framework or in any other potential deal.

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This, in essence, removes any uncertainty that may have been hanging around the Heat front office about its ability to include Rozier in any potential trade package.

If Miami is unable to move Rozier before the Thursday, Feb. 5 trading deadline, he would be on the books through the remainder of the season, and Miami would get a sizable chunk of cap space once his contract expires.

Rozier is in the final season of a four-year deal that pays $26.6 million, per Spotrac.com. The NBA and Heat had been holding Rozier’s salary in escrow, pending the results of the ongoing investigation; Rozier has been away from the Heat since his arrest.

What accusations is Terry Rozier facing?

Rozier, 31, pleaded not guilty to charges of wire fraud and money laundering.

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Rozier is accused of manipulating his performance during an NBA game to benefit illegal betting. The game took place on Thursday, March 23, 2023, when Rozier was a member of the Charlotte Hornets.

He had averaged 35.3 minutes and 21.1 points per game that season, and entered the night with no injury designation.

He started the game, but played only 9:34 minutes before he left the game with a supposed foot injury. He did not return and would subsequently miss the remaining eight games of the season.

That night, Rozier took just four shot attempts, making two of them, and scored five points, while adding four rebounds and two assists.

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According to the indictment, Rozier informed his childhood friend, De’Niro Laster, that he “was going to prematurely remove himself from the game in the first quarter due to a supposed injury and not return to play further.”

Per the indictment, Laster then allegedly sold the information about Rozier’s participation to multiple co-conspirators so that they could place fraudulent wagers.

U.S. Attorney for the Eastern District of New York Joseph Nocella Jr. called the alleged setup, “one of the most brazen sports corruption schemes since online sports betting became widely legalized in the United States.”

This article originally appeared on USA TODAY: How Terry Rozier arbitration ruling affects Miami Heat trade situation



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