An arbitrator ruled Monday in favor of Miami Heat guard Terry Rozier in a salary dispute with the NBA that arose following his federal indictment in a gambling investigation. The decision means Rozier’s salary will be released from escrow, sources told ESPN.
The arbitrator determined that under Collective Bargaining Agreement terms, players cannot be placed on unpaid leave except in domestic abuse or child abuse cases. Rozier’s approximately $26.6 million salary for the 2025-26 season had been held in escrow since December.
The Heat and NBA agreed to withhold Rozier’s salary after his October arrest and indictment as part of a federal gambling investigation. Portland Trail Blazers coach Chauncey Billups was also implicated in the probe.
The National Basketball Players Association appealed the agreement to withhold payment. The union filed the grievance on behalf of Rozier shortly after the escrow arrangement was announced.
“We are pleased with the arbitrator’s ruling and remain committed to ensuring Terry’s due process rights are protected and that he is afforded the presumption of innocence throughout this process,” an NBPA spokesperson said in a statement to ESPN.
Rozier pleaded not guilty to conspiracy charges of wire fraud and money laundering. His attorneys filed a motion to dismiss the case in December, citing government overreach.
Federal prosecutors allege Rozier informed an associate he would remove himself early from a March 2023 game while playing for the Charlotte Hornets. The associate allegedly sold the information to gamblers, who bet more than $200,000 on the under for Rozier’s statistics in that contest.
The government’s response to the dismissal motion is due Monday. ESPN reached out to the NBA for comment but did not receive an immediate response.
Rozier remains on Miami’s roster but has not appeared in any games this season. The Heat have kept him away from team activities since the indictment became public.
The ruling sets a precedent for how the NBA can handle player compensation during ongoing legal proceedings. The decision reinforces CBA protections that limit circumstances under which teams can withhold player salaries.