The Miami Heat did not know guard Terry Rozier was under investigation for illegal sports betting when they acquired him from the Charlotte Hornets in January, multiple sources told The Miami Herald.
Rozier was arrested by the FBI on Thursday as part of a federal probe into unlawful wagering, placing his playing future in jeopardy and creating roster complications for Miami. Unless commissioner Adam Silver intervenes, Rozier and his expiring $26.6 million contract will remain on the Heat’s books for the rest of the season.
The NBA had received alerts about suspicious betting activity involving Rozier 10 months before the trade, but league policy bars officials from disclosing such information to teams, according to the report by Barry Jackson and Anthony Chiang. As a result, the Heat received no warning before the league approved the deal that sent veteran guard Kyle Lowry and a protected first-round selection to Charlotte.
Sources also said Hornets executives did not share details of the investigation with Miami. Charlotte chief communications officer Mike Cristaldi declined to confirm whether the organization knew about the allegations.
Team officials only learned of the probe after it was reported by The Wall Street Journal, well after the trade had been finalized. The Heat are currently gathering information and have not decided whether to ask the NBA to return the draft pick, which will go to the Hornets in 2027 if Miami reaches the playoffs that season, or become unprotected in 2028.
Two league spokespeople declined to explain why clubs are kept in the dark when suspicious betting activity is detected or an investigation is opened. The NBA has also not indicated whether Silver might void Rozier’s contract before the court case concludes.
Because Rozier remains on the roster, Miami cannot sign a replacement or use its open roster spot without entering luxury-tax territory. If the guard is expelled from the league, the Heat would fall roughly $28 million below the tax line, creating space to add two players.
Regaining the traded draft pick would further expand Miami’s flexibility, providing tradable first-rounders in 2026, 2028, 2030 and 2032; the club is currently limited to moving only the 2030 and 2032 selections.
The NBA also denied an ESPN report from Brian Windhorst claiming the league ordered Rozier’s benching after the game that triggered the investigation, stating instead that the guard was sidelined by a foot injury confirmed by MRI.
Source: Hoops Rumors
