Miami alleges it was unaware of an active investigation into Rozier; Executives believe the league will need to review its disclosure rules.
On Monday afternoon, the guard of the Miami Heat, Terry Rozier, He is scheduled to appear in federal court in Brooklyn to be officially arraigned as part of a wide-ranging investigation into illegal sports betting.
Rozier is accused of participating in a betting scheme, using inside NBA information when he was a member of the Charlotte Hornets, after suspicious bets were recorded on propositions related to his statistics in an away match against the New Orleans Pelicans on March 23, 2023. The league conducted an investigation and determined that Rozier had not violated NBA rules. He was later traded to the Heat on January 23, 2024.
And while the focus remains on the legal case — Rozier’s attorney has said his client is innocent — there are more elements to consider from a league perspective.
From the details of the trade — what needed to be revealed between the league, the Heat and the Hornets, and what resources Miami might have — to what could happen if the Heat try to move Rozier before the Feb. 5 deadline, here’s a look at where things stand for all parties and what some NBA executives think could be coming.
What is Miami’s problem with the transfer?
Sources told ESPN that the Heat were not aware of the NBA investigation when they acquired Rozier, whom they added by giving up a protected first-round lottery pick in 2027 and shooting guard Kyle Lowryas they attempted another deep playoff run. In contrast, Rozier did not appear in any postseason games for Miami, playing in 95 games in two regular seasons and averaging 12.5 points on 40.4% shooting from the field.
The Hornets, asked by ESPN whether they were aware of the investigation before the trade, declined to comment.
Following its investigation, the NBA did not determine that Rozier had violated league rules. But the league insisted after Rozier was arrested in October that it had not “exonerated” him of misconduct. Sources close to the case told ESPN that the NBA was not aware of the federal investigation before the trade.
The Heat learned of the league’s investigation into Rozier in January, a year after the trade, when The Wall Street Journal reported that he was under federal investigation, and they were upset they didn’t know about it sooner, sources said.
This raises the question: should the investigation have been revealed during the transfer confirmation call?
What is the transfer confirmation process in the NBA? What should be revealed?
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Shams: Billups and Rozier will not receive their salaries while they are out
Shams Charania reports that Blazers coach Chauncey Billups and Heat guard Terry Rozier will not receive their salaries while they are out.
When teams agree to a trade, the parties involved make a call with the NBA to review the details. It may seem like a formality, but in rare cases poor communication can ruin a deal — as happened with the famous three-way trade collapse in 2018 because the Memphis Grizzlies thought MarShon Brooks was being traded, while the Phoenix Suns they believed it was Dillon Brooks.
Before last season’s trade deadline, the NBA sent a memo to teams, obtained by ESPN, that said: “Please remember that teams involved in a trade must exchange certain medical and insurance information prior to the trade.”
Teams are required to share contractual, medical and insurance information, along with any materials that could prevent a player involved in the transfer from being able to play. That information is also shared with the NBA, as required by the league’s operations manual and bylaws. There was no medical alert that prevented Rozier’s transfer.
But the league’s operations manual and bylaws state: “No member shall make a material false representation or fail to disclose any material information during the trade call.”
The question then becomes whether the investigation into Rozier constitutes “material information.”
The manual also states that if a member is found responsible for violating these provisions, the Commissioner may impose sanctions including a fine (up to $1 million), suspension of the employee involved, cancellation of the transfer, and/or forfeiture or transfer of draft picks.
In conversations with league executives, opinions were divided on whether the investigation should be disclosed. Several executives described it as a “gray area” with no clear answer.
“The league can exonerate a player, but can always reopen the investigation if new information emerges,” one executive said. “For that reason, the investigation into Rozier should have been revealed by the NBA and the Hornets.”
Another executive agreed, but warned of a difficult precedent, especially if the league had found no violations.
“On the one hand, you understand why the Heat should have the right to know,” he said. “But on the other hand, what happens if the NBA reveals the investigation even though there is no violation, and the purchasing team backs out?”
A third executive said, “It’s not explicitly required to disclose it. You would think that to be a good partner you would have to disclose it, but it’s not required in the process. If I were Charlotte, I understand why they didn’t do it.”
Will the NBA change its disclosure rules for transfers?
Leaving aside the possibility of a formal complaint, the other question is whether the league will update its disclosure rules to address situations like this, especially as legal sports betting continues to expand in the United States.
Several high-ranking executives told ESPN that they believe the NBA will study this possibility, just as it once created specific rules for disclosing injuries in trades.
Others, both from teams and the league, warned of the risks. What would happen if Rozier is acquitted or the charges are dropped, after the league has already determined there was no rule violation? Would it be fair to the player or the team?
What options do the Heat have? Could they win a formal complaint against the NBA?
Miami can file a complaint for not being informed about the investigation before the transfer. Sources told ESPN that the Heat haven’t decided yet. Although the transfer occurred almost two years ago, there is no deadline for filing a complaint. A factor that complicates the situation is that the transfer is not completely closed. The 2027 lottery-protected first-round pick — which would become a free pick in 2028 if the Heat miss the 2027 playoffs — has not yet been transferred, leaving something Miami could try to get back. But multiple sources around the league said they don’t see a path for the Heat to win a grievance in this case. Miami, due to several past agreements, cannot transfer any first-round picks between 2026 and 2029. Due to the Stepien Rule, which prevents transferring first-round picks from consecutive seasons, the Heat can only transfer two first-round picks (2030 and 2032) before the February 5 deadline. (Miami can carry pick swaps for up to four additional seasons through 2031.) Getting their pick back from Charlotte, while unlikely, would give Miami back its full arsenal of picks to make moves. It is unusual for a team to file a complaint, regardless of the situation. The Hornets, for example, were upset about the reverted trade in February that would have sent Mark Williams to the Lakers. But they did not file a complaint. Some owners, such as former Mavericks governor Mark Cuban, have publicly criticized certain operational aspects of the league. Others, like Heat owner Micky Arison, rarely make their disagreements public. A notable exception occurred in 2011, when Arison gave a rare interview to announce that he was one of five votes against the labor agreement that ended the lockout, due to his disagreement with the revenue-sharing system. But Arison emphasized that it was a symbolic vote and that he had worked to approve the new agreement. Sources told ESPN that it’s still unclear what would happen if the Heat tried to move Rozier before the Feb. 5 deadline. No team would be interested in acquiring him to play, since, like Portland coach Chauncey Billups, he is separated from his duties by the NBA. However, Rozier has an expiring $26.6 million contract that could help Miami bolster its current roster and allow the other team to create future cap space. Although the NBA has not given guidance on whether Miami could trade him, the fact that he is still on the roster indicates that the Heat believe the possibility exists. And there are precedents. Kevin Porter Jr. He was arrested in September 2023 and charged with assault and strangulation, but was traded a month later to Oklahoma City, which immediately cut him. A similar situation could occur with Rozier. Sources expect that if the Heat close to an agreement to move Rozier, only then would the team consult with the NBA to clarify whether the trade would be allowed.Can the Heat trade Rozier?
