“Unprecedented Situation”: Heat Fully Guarantee Rozier’s $22.6M Salary

The Miami Heat’s quiet but telling decision this week regarding Terry Rozier took many by surprise. The NBA franchise Terry Rozier decided it would pay the veteran guard’s $26.6 million salary in full. 

That’s despite the 31-year-old being away from the team since October 23 due to his arrest tied to a federal gambling investigation, and the fact that he is not expected to return to the court anytime soon for an official game, at least this season. 

Nonetheless, the Heat proceeded to lock in $24.9 million of the amount prior to 5 pm on Wednesday, which was the deadline for non-guaranteed contracts across the league to become fully guaranteed. 

Room for Negotiations

If they had decided to waive Rozier before that, they would have saved $1.7 million while automatically creating extra room below the luxury tax and opening a second roster spot. They, however, chose to rely on a matter of flexibility when making their controversial call. 

Since the player’s contract will expire at the end of the season, the Heat can use a $26.6 million expiring deal when carrying trade talks ahead of the February 5 deadline. 

Plus, the same expiring clause will help the franchise match salaries, while, for a potential trade partner, it is money that disappears from the cap this summer. 

According to a league source, the Heat has not yet been formally informed by the NBA on whether they can use Rozier’s contract in a trade, considering his legal situation. However, provided his name does come up in discussions, Miami plans to push the league for a ruling right away.

Moreover, in terms of roster, the team is operating with one open spot and roughly $1.6 million of breathing room below the luxury tax, which should suffice to sign one player to a prorated minimum deal for the remainder of the season. 

However, adding Rozier to the waiver list would have allowed them to sign two, so Miami chose the trade chip over the extra roster spot.

Rozier only had the chance to play the season opener for the Heat before being arrested at the team hotel in Orlando, and was placed on paid leave. His salary is currently being held in an interest-bearing account while the case plays out, and the Heat continues to list him as “not with team.”

“This is An Unprecedented Situation”

NBA commissioner Adam Silver called it “an unprecedented situation” last month. “And I think I’m incredibly sympathetic to the Heat and to their fans. But I think we’re going to try to work something through, work this out with them. But there’s no obvious solution here,” Silver added. 

“I would just say that there’s no doubt at the moment they have a player that can’t perform services for them,” the commissioner concluded. 

The NBA had flagged unusual betting activity involving Rozier months before Miami acquired him from Charlotte in January 2024, but the Heat was never informed. 

The league later cleared Rozier in its own review, only for a federal investigation to lead to his arrest. The Heat says it learned about both investigations only after a Wall Street Journal report earlier this year.The type of relief, if any, the Heat might receive is still unclear, as Rozier has pleaded not guilty to charges including conspiracy to commit wire fraud and money laundering. His attorney, Jim Trusty, has denied the allegations.