MIAMI — For the first time since Terry Rozier was arrested in Orlando on Oct. 23 as part of a federal gambling probe, the Miami Heat will have a seat at a hearing regarding what comes next for the banished guard.
According to a source directly familiar with the process, the Heat will have representation at a Wednesday arbitration hearing in New York that centers on the disposition of Rozier’s salary while he remains on NBA administrative leave.
While the hearing solely is a function between the NBA and the National Basketball Players Association, a source said the Heat will be represented at the hearing. Friday stood as the deadline to submit potential witness lists for that arbitration.
Rozier’s salary, under NBA edict, currently is being held in an interest-bearing escrow-type account. The union is attempting for the bi-weekly payments on the $26.6 million salary to be paid directly to Rozier, who this past week in Brooklyn federal court entered not-guilty pleas to conspiracy to commit wire fraud and money laundering.
The timing of Wednesday’s hearing comes three weeks before the NBA’s deadline guaranteeing contracts for the balance of the season.
That Jan. 7 deadline potentially stands significant to the Heat, due to $1.6 million of Rozier’s 2025-26 salary being non-guaranteed.
Should Rozier be waived by Jan. 7, the Heat then would have enough space below the punitive NBA luxury-tax threshold to sign a replacement player at a pro-rated portion of the veteran-minimum salary.
With a ruling from Wednesday’s arbitration that favors the continuation of the escrow-type arrangement, it could make a decision easier for the Heat to waive Rozier by Jan. 7, with a greater level of confidence that Rozier’s salary could be clawed back if the guard were to be found guilty or agree to a plea, thereby making him ineligible for the NBA.
An oral ruling on the escrow arrangement could be rendered next week, but the league reportedly is insisting on a written opinion, which could move such a decision beyond the Jan. 7 NBA guarantee deadline.
As for whether Rozier’s case could be resolved before season’s end, there is a potential twist that could have him eligible for a return this season, on the final year of his contract.
In the wake of Rozier entering his not-guilty pleas on Monday, attorney Jim Trusty spoke of filing a status motion for dismissal.
According to a party familiar with the case, the motion for dismissal is focused on the 2023 U.S. Supreme Court case of Ciminelli v. United States, which centered on the scope of the federal wire fraud statute and, specifically, the validity of the “right-to-control” theory of fraud.
According to the unanimous decision authored by Justice Clarence Thomas, the federal wire fraud statute only criminalizes schemes to deprive people of traditional property interests (money or tangible property), with the so-called “right to control” one’s assets by being deprived of information is not a traditional property interest.
For Rozier, that comes into play as to whether alleged gambling information was knowingly sourced for financial gain.
Even with such potential adjudication, NBA Commissioner Adam Silver nonetheless has elastic powers to keep Rozier on administration leave or even disqualify him from a return.
Rozier is free on $3 million bond secured by his Florida home.
In addition to the additional salary slot below the luxury tax that would be created by waiving Rozier by the Jan. 7 deadline, the Heat as of Saturday will have enough space below the luxury tax to add a veteran to a pro-rated veteran-minimum contract to fill their vacant 15th roster spot.
The Heat are not expected to make an immediate roster move, which would allow greater flexibility for personnel moves later in the season, as they remain hard against the luxury-tax threshold.
While the Heat arguably could benefit from an additional veteran presence in their power rotation and perhaps another 3-point shooter, the approach at the moment appears to be the continued development of the team’s younger prospects.
The Heat are idle until Monday night against the Toronto Raptors at Kaseya Center.
The next status hearing for Rozier’s case is March 3, six weeks before the end of the Heat’s regular season.