Sources: Hornets send pick to Heat to resolve Terry Rozier dispute

"This is an unprecedented situation. It was a multilayered issue for the league and the Heat, given that Rozier's $26.6 million salary took up about 17% of the team's cap space -- and that the team still owes the Hornets a first-round pick in either 2027 or 2028 to satisfy the terms of the trade that brought Rozier to Miami."

"Federal prosecutors allege Rozier told an associate he would remove himself early in a March 2023 game, when he was with the Hornets. Rozier's associate then allegedly sold the information to gamblers, who proceeded to bet more than $200,000 on the under on Rozier's statistics in the game."

"The Heat and NBA agreed to put Rozier's salary for the 2025-26 season in escrow after Rozier was arrested and indicted in October as part of a federal gambling investigation that also led to charges against Portland Trail Blazers coach Chauncey Billups."

Terry Rozier, traded to the Miami Heat in 2024, faces federal investigations for alleged gambling conspiracy and cannot play. The NBA and Heat sought relief due to Rozier's $26.6 million salary consuming 17% of Miami's cap space. Charlotte is sending Miami a 2026 second-round pick to resolve the dispute. Rozier pleaded not guilty to wire fraud and money laundering charges. Federal prosecutors allege he told an associate to remove himself early in a March 2023 game, with the associate selling this information to gamblers who bet over $200,000 on reduced Rozier statistics. An arbitrator ruled in Rozier's favor in a salary dispute in February. The Heat and NBA placed Rozier's 2025-26 salary in escrow after his October indictment.

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