MIAMI, FL – March 9, 2026 – The Charlotte Hornets are sending a 2026 second-round draft pick to the Miami Heat to resolve a lingering dispute stemming from the January 2024 trade that brought guard Terry Rozier to South Florida. The move, confirmed Monday by multiple sources, effectively closes a chapter on a complex situation involving an NBA investigation and federal scrutiny surrounding Rozier’s alleged involvement in gambling-related improprieties.
The pick will be the more favorable of the second-round selections held by the Golden State Warriors or the Denver Nuggets, according to reports. This resolution comes after months of discussions between the league and both teams, with NBA Commissioner Adam Silver previously indicating the league would seek “satisfactory relief” for the Heat given the circumstances surrounding Rozier’s acquisition.
The core of the issue dates back to Rozier’s time with the Hornets, where federal prosecutors allege he shared confidential information about his playing status with an associate who then placed bets on his statistical performance. Specifically, the allegations center around a March 2023 game where Rozier reportedly told an associate he would limit his playing time, allowing the associate to profit from wagers on the under for his statistics. More than $200,000 was reportedly wagered based on this information.
Rozier was arrested by federal officials in October 2025 and charged with conspiracy to commit wire fraud and money laundering. He pleaded not guilty to the charges. The timing of the arrest, shortly before the start of the 2025-26 NBA season, forced him to step away from the Heat and he remains unavailable to play.
The Heat acquired Rozier on January 23, 2024, sending a lottery-protected 2027 first-round pick and veteran guard Kyle Lowry to Charlotte. However, the Hornets were reportedly unaware of the federal investigation into Rozier at the time of the trade and did not disclose this information to Miami. This lack of transparency fueled the dispute, as the Heat found themselves with a player unable to contribute while also carrying his $26.6 million salary against their cap.
The situation presented a unique challenge for the NBA, as Silver acknowledged in December. “This is an unprecedented situation,” he stated at the time, adding that the league was working to find a resolution that was fair to both teams. The Heat’s cap space, roughly 17% allocated to Rozier’s salary, was significantly impacted by his unavailability, while they still owed the Hornets a future first-round pick as part of the original trade agreement.
An arbitrator ruled in favor of Rozier in February in a salary dispute with the NBA that arose after his indictment, sources reported. Despite this ruling, the Heat and the league agreed to place Rozier’s 2025-26 salary in escrow pending the outcome of the federal investigation.
Rozier’s performance with the Heat had already begun to decline before the allegations surfaced. After averaging 16.4 points, 4.2 rebounds, and 4.6 assists in 31 games following the trade, his production dipped significantly in the 2024-25 season, where he averaged just 10.3 points while shooting 29.5% from three-point range in 64 games. This downturn in performance further complicated matters for the Heat, who had envisioned Rozier as a key piece of their championship aspirations.
The Hornets originally signed Rozier to a four-year, $96 million contract extension in August 2021. That contract is set to expire at the end of the current season. The second-round pick sent to Miami represents a form of compensation for the Heat’s predicament, though it’s unclear if it’s the “satisfactory relief” Silver initially alluded to.
The Heat still owe the Hornets a first-round pick in either 2027 or 2028, adding another layer to this complex transaction. The resolution of the Rozier dispute allows both teams to move forward, though the legal proceedings surrounding the allegations remain ongoing.
The Miami Heat next face the Boston Celtics on March 12th at Kaseya Center. The Hornets will continue their season on March 10th against the Atlanta Hawks at Spectrum Center.
(AP Photo/Nick Wass, File)
