In light of Terry Rozier being investigated as part of an illegal gambling probe, the Charlotte Hornets are sending a 2026 second-round pick to the Miami Heat to settle a dispute, league sources confirmed to The Charlotte Observer on Monday.
Miami will receive the more favorable of Golden State and Denver’s second-round selections, the rights of which belong to the Hornets.
The Heat acquired Rozier from Charlotte in January 2024 for Kyle Lowry and a 2027 first-round draft pick. The NBA was alerted to the unusual betting activity 10 months before the trade, but the league did not inform the Heat or other teams of that red flag in the months that followed.
Terry Rozier arrives for an arraignment hearing at U.S. District Court for the Eastern District of New York on Dec. 8, 2025. Michael M. Santiago Getty Images
Rozier was eventually cleared by the NBA in its own investigation of him before a federal investigation later ended with his arrest.
The FBI is investigating Rozier as part of an illegal gambling probe and whether he purposefully manipulated his performance during a game while a member of the Hornets. He was arrested on Oct. 23 in Orlando and placed on paid leave by the NBA after being charged with conspiracy to commit wire fraud and conspiracy to commit money laundering.
What the FBI’s indictment says about Terry Rozier
Rozier played for the first nine-plus minutes of the Hornets-New Orleans Pelicans game on March 23, 2023, before leaving with an injury. He finished with five points, four rebounds and two assists that night and didn’t play again in the team’s eight remaining games of the 2022-23 season.
In its indictment, the FBI alleged Rozier told childhood friend Deniro Laster he planned to remove himself from the game and alleged Laster sold this information to two betters for roughly $100,000.
The 31-year-old Rozier appeared in a New York courtroom for his arraignment in December, during which Rozier pleaded not guilty and was released on a $3 million bond secured by his home in South Florida.
In February, an arbitrator ruled in Rozier’s favor in a salary dispute with the NBA and released the $26.6 million he’s owed in the final season of a four-year, $97 million contract extension he inked with the Hornets in 2021.
As for the originally agreed upon trade compensation, Miami’s 2027 first-round pick will still convey to the Hornets next year if the Heat makes the playoffs next season. Should Miami miss the postseason altogether in 2026-27, the Hornets receive Miami’s 2028 first-round pick.
This story was originally published March 9, 2026 at 1:23 PM.
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Roderick Boone joined the Observer in September 2021 to cover the Charlotte Hornets and NBA. In his more than two decades of writing about the world of sports, he’s chronicled everything from high school rodeo to a major league baseball no-hitter to the Super Bowl to the Finals. The Long Island native has deep North Carolina roots and enjoys watching “The Fresh Prince of Bel Air” endlessly.
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