The Heat weren’t aware that Terry Rozier was under suspicion of illegal gambling activity when they acquired him from Charlotte in January, multiple sources tell Barry Jackson and Anthony Chiang of The Miami Herald.
Rozier was arrested Thursday by the FBI as part of a federal investigation into illegal sports betting, jeopardizing his basketball future and raising plenty of questions about what the move means for the team. Without action from commissioner Adam Silver, Rozier and his expiring $26.6MM salary will remain on Miami’s roster for the rest of the season.
The NBA was alerted to unusual betting activity regarding Rozier 10 months before the trade took place, but the league has a policy of not informing its teams about such matters, according to Jackson and Chiang. No warning was given to the Heat before the league approved the trade, which sent veteran guard Kyle Lowry and a first-round pick to Charlotte, multiple sources told the authors. Their sources also said Hornets officials didn’t share information about the probe with the Heat, and Mike Cristaldi, Charlotte’s chief communications officer, refused to say whether they were aware of the allegations against Rozier.
The Heat didn’t learn that Rozier was being investigated by the NBA and FBI until it was reported by the Wall Street Journal after the trade was complete, according to the authors.
They describe the team as being in “information gathering mode” and still undecided on whether it will appeal to the league in an effort to get back the draft pick that’s now owned by the Hornets. That pick will convey to Charlotte in 2027 if the Heat reach the playoffs that season. Otherwise, it becomes unprotected in 2028.
Two spokesmen from the league office refused to explain to Jackson and Chiang why the league doesn’t inform all its teams when unusual betting activity is detected or whenever it opens an investigation into a player. The authors point out that having that information might have dissuaded Miami from trying to trade for Rozier.
They add that the NBA has declined to say whether Silver would consider voiding Rozier’s contract before the case is decided in federal court. The team currently can’t sign a replacement for Rozier or fill its open roster spot without moving into luxury tax territory. If Rozier were to be expelled from the NBA, the Heat would be about $28MM below the tax threshold, giving them plenty of room to sign two players and fill out their roster.
Jackson and Chiang point out that having the draft pick returned would provide a lot more flexibility in trade talks, giving Miami tradable first-rounders in 2026, 2028, 2030 and 2032. The team is currently limited to trading no more than two future picks (2030 and 2032).
The NBA office denied a report from ESPN’s Brian Windhorst that the league ordered Rozier to be benched after he left the game that prompted the investigation, the authors add. A league spokesman said Rozier suffered a foot injury that was confirmed by an MRI.