The 2025 NBA offseason was already full of drama. Fans were still talking about the controversy surrounding the Los Angeles Clippers, who were accused of circumventing the salary cap with Kawhi Leonard, when the league was jolted again — this time by arrests involving Terry Rozier, Portland Trail Blazers head coach Chauncey Billups, and former player-turned-assistant coach Damon Jones.
The Miami Heat have since become the focus of attention as a major dilemma regarding Rozier’s future has emerged.
Miami Heat Not Sure of What to Do With Terry Rozier
In the early hours of Oct. 23, just after the Heat’s game against the Orlando Magic, Rozier was taken into federal custody at an Orlando hotel. It was only hours after dressing for the game but never stepping on the floor.
Federal investigators allege that Rozier was connected to suspicious betting activity, including ties to a prominent sports bettor who placed 30 winning wagers on his stat lines during a 2023 contest, which triggered serious concerns about game integrity.
As the investigation escalated, Miami removed Rozier from team activities and placed him on unpaid leave for an indefinite period, leaving both his playing status and long-term future in limbo while the legal process unfolds.
With Rozier sidelined indefinitely and facing federal charges, the Heat’s front office is stuck between honoring the existing deal and planning for a future that may not include him.
In a recent report on “The Stein Line,” NBA insider Jake Fischer noted that the league has not yet given Miami clarity on whether Rozier’s contract can be traded while he remains under this cloud. Any attempt to move his salary would require the Heat to navigate a series of complex cap and legal hurdles.
“Sources reiterated to The Stein Line this week that the NBA has yet to confirm whether Miami would be eligible to trade Rozier’s salary while his legal status remains undetermined. There remains a chance that the league office will ultimately void Rozier’s contract depending on the outcome of his judicial process.”
“I’ve also been told that Miami would need to first agree to a trade in principle that includes Rozier’s outgoing salary just to generate an official ruling from the NBA about whether the trade is legal or not,” wrote Fischer in his report.
Fisher didn’t stop there. He also reported that during the offseason, Miami quietly approached Rozier’s representatives to explore a possible contract buyout. In other words, the Heat wanted to settle financially and move on from the situation, but nothing was finalized.
Fischer also noted that there had been an argument for keeping Rozier on the roster in hopes that his performance could raise his value. The reasoning was that if the 31-year-old guard responded with productive play, his $26.6 million expiring salary might become tradeable.
The game that reportedly sits at the heart of the federal allegations dates back to Rozier’s time with the Charlotte Hornets in the 2022–23 season.
On March 23, 2023, against the New Orleans Pelicans, Rozier left after a little more than nine minutes, citing soreness in his right foot and finishing with just five points, far below what he typically produced that year, before missing the Hornets’ final eight games. Investigators say this matchup is central to their case.
Rozier’s off‑court picture has been complicated further by financial issues, including an $8.2 million IRS lien filed against him in November 2023. According to recent court records in Broward County, that tax obligation has now been settled, removing one major financial cloud even as the gambling case looms large over his career and reputation.
“Several years ago, a flawed e-filing attempt led to the IRS issuing a lien for Terry’s full tax liability for 2021, roughly $8 million. Once the accountant clarified the situation with the IRS, Terry was found to owe only $3,000 in unpaid taxes for 2021.”
“That amount has been taken care of and we fully expect the defunct lien to be withdrawn in the near future,” said Rozier’s lawyer Jim Trusty as per the “Athletic”.
With so many moving parts, Miami’s front office must wait to see how the NBA and the collective bargaining agreement will ultimately handle Rozier’s situation. The league’s next move could determine whether the Heat can trade, buy out, or be forced to keep a contract that has become one of the most controversial in the sport.