Miami Heat guard Terry Rozier arrives for an arraignment hearing at U.S. District Court for the Eastern District of New York on December 08, 2025 in New York City. Michael M. Santiago Getty Images
While Miami Heat guard Terry Rozier remains away from the team, he made an appearance in a federal courthouse in Brooklyn on Monday afternoon for his arraignment stemming from a federal investigation into illegal gambling.
Rozier, who was arrested on Oct. 23 at the Heat’s Orlando hotel following the team’s Oct. 22 season-opening road loss to the Magic, pleaded not guilty at Monday’s arraignment and was released on $3 million bond secured by his home in South Florida.
Rozier, 31, has been charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. He is accused of providing inside information to co-conspirators about his intentions to leave a March 2023 game early due to a foot injury while he was with the Charlotte Hornets, which enabled them to place large bets on him not reaching statistical thresholds.
In its indictment, the FBI alleges that Rozier told Deniro Laster, a childhood friend, that he planned to remove himself from the Hornets’ game against the New Orleans Pelicans on March 23, 2023. Laster allegedly sold this information to two betters for about $100,000.
Rozier left the game after just nine minutes, with five points, four rebounds and two assists. The indictment alleges that he paid for Laster to travel to Philadelphia to collect the proceeds from the scheme, and that Laster then drove to Rozier’s home in Charlotte to count the money with him. The indictment does not detail the evidence against Rozier.
Rozier’s attorney, Jim Trusty, has denied the allegations, but declined to comment to reporters after Monday’s brief hearing. The NBA placed Rozier on paid leave shortly after his arrest in October, with the Heat continuing to list him as “not with team” on its injury reports this season.
The NBA was alerted to the unusual betting activity 10 months before the Heat traded Kyle Lowry and a first-round pick to the Hornets for Rozier in January 2024, but the league did not inform the Heat (or other teams) of that red flag in the months that followed. The NBA went on to clear Rozier in its own investigation of him before a federal investigation later ended with his arrest.
The Hornets also did not inform the Heat, sources said. The Hornets have declined to comment when asked if they knew of the NBA’s investigation at the time of the trade, whether it had any knowledge of sportsbooks flagging bets involving Rozier and why it did not inform the Heat if it did know.
The Heat, in fact, was unaware that Rozier was the subject of separate NBA and FBI investigations until the Wall Street Journal broke the story this past January.
Miami Heat guard Terry Rozier (C) arrives for an arraignment hearing at U.S. District Court for the Eastern District of New York on December 08, 2025 in New York City. Michael M. Santiago Getty Images
As Rozier’s case moves forward and could take months and possibly years to play out, there remains little clarity surrounding his situation with the Heat.
It still remains to be seen if the Heat would attempt to recoup the first-round pick that it sent to the Hornets in the trade for Rozier.
That pick will convey to the Hornets in 2027 if the Heat makes the playoffs next season. If the Heat misses the playoffs next season, then Charlotte would receive Miami’s 2028 first-round pick regardless of where it falls in the first round.
If the Heat hadn’t traded a future first-round pick to the Hornets for Rozier, Miami would have all its future picks and four tradable first-round picks (2026, 2028, 2030 and 2032). Instead, the Heat can currently trade no more than two future first-round picks (2030 and 2032).
One potential recourse for the NBA would be awarding the Heat a compensatory first-round pick in 2027, which would allow Miami to trade four first-round picks. But there has been no indication yet that the NBA would consider doing that.
In fact, the Heat has yet to even receive clarity from the league about whether Rozier’s expiring $26.6 million salary can be used as part of a trade in the wake of his October arrest, according to a league source. The Heat would push for an immediate answer from the league on this issue if Rozier’s name came up in trade discussions with another team.
That NBA source also indicated the Heat has not yet received clarity from the league about whether it could even waive Rozier before his full salary for this season becomes guaranteed in January.
Waiving Rozier would create an additional $1.7 million of room below the luxury tax threshold since only $24.9 million of his $26.6 million salary for this season is currently guaranteed. The Heat is currently operating just $1.6 million below the NBA’s punitive luxury tax line.
As of now, the Heat has to wait until Saturday to use its 15th and final roster spot to sign a player for the rest of the season while still staying out of the luxury tax. But waiving Rozier would give the Heat the ability to immediately add to its roster while remaining below the luxury tax line.
The NBA is currently having the Heat place Rozier’s salary in an interest-bearing account, pending the resolution of his legal case.
INJURY REPORT
The Heat is expected to be close to full health for Tuesday night’s NBA Cup quarterfinal game against the Magic in Orlando.
Heat guard Tyler Herro (right big toe contusion) is listed as probable after missing the last two games. In addition, Heat guards Pelle Larsson (right hip flexor tightness) and Davion Mitchell (right groin tightness) are probable to play Tuesday after missing the last game with their injuries.
Vlad Goldin (G League) and Dru Smith (left hip contusion) are questionable to play against the Magic on Tuesday.
The only Heat player ruled out is Rozier.