The Miami Heat were unaware Terry Rozier was under investigation for illegal gambling when they traded for him in January, according to The Miami Herald’s Barry Jackson and Anthony Chiang.
Rozier was arrested Thursday by the FBI in a federal sports betting probe, leaving his future uncertain. Without a decision from commissioner Adam Silver, Rozier will stay on Miami’s roster and continue earning his $26.6 million salary.
Sources told the Herald that the NBA had detected “unusual betting activity” involving the player nearly 10 months before the trade but did not inform the Heat, as league policy prohibits alerting teams during ongoing investigations.
The Hornets also did not share any information before the deal that sent Kyle Lowry and a future first-round pick to Charlotte. Miami reportedly didn’t learn about the probe until The Wall Street Journal revealed it after the trade.
Team officials are now gathering information and may appeal to the league to recover their traded pick, which conveys to Charlotte in 2027 if the Heat make the playoffs. If Rozier were banned, Miami would gain about $28 million in cap space to add players.
Two NBA spokespeople declined to explain why teams aren’t informed when betting irregularities arise.
The league also rejected ESPN’s claim that Rozier was benched after the March 2023 game that sparked the investigation, saying his absence was due to “a real foot injury confirmed by an MRI.”
For now, the Heat remain stuck in uncertainty – unable to replace Rozier or reclaim assets while his case plays out in federal court.
Heat Didn't Know About Terry Rozier Investigation When Trade Took Place https://t.co/qjkXS32gai pic.twitter.com/8KNKjYysnK
— Hoops Rumors (@HoopsRumors) October 25, 2025
