Miami Heat’s Terry Rozier wins arbitration ruling in salary dispute with NBA

Miami Heat guard Terry Rozier found himself at the center of a major off-court controversy last October after being linked to a federal investigation involving alleged mafia-connected sports betting and rigged poker games.

Federal prosecutors accused Rozier of participating in a scheme designed to influence game outcomes, allegations that immediately sent shockwaves through the NBA. Following his indictment, the league placed the veteran guard on leave, holding his salary in escrow pending the resolution of the charges. It was widely understood that Rozier was not paid during the suspension, a move that quickly became a point of contention between the league and the NBA Players Association (NBPA).

On Monday, February 2, however, Rozier received a significant legal victory. ESPN reported that an arbitrator ruled in his favor in a salary dispute with the NBA, determining that the league had violated the Collective Bargaining Agreement (CBA) by placing him on unpaid leave. The ruling clears the way for the release of Rozier’s withheld salary, which totals approximately $26.6 million.

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According to the arbitrator, the CBA permits unpaid suspensions only in cases involving domestic abuse or child abuse, neither of which applied in Rozier’s situation. As a result, the league’s decision to withhold his pay was deemed improper.

BREAKING: An arbitrator ruled in favor of Terry Rozier, ordering the NBA & Miami Heat to release his $26.6 Million salary that had been held in escrow following his federal gambling indictment.

As a result, Rozier’s contract is now considered fully guaranteed & “active” for cap… pic.twitter.com/XnFVgjFGr4

— Courtside Buzz (@CourtsideBuzzX) February 2, 2026

“Terry won today under the principles of contract law and the Collective Bargaining Agreement between the league and the players, but the bigger principle at issue is the presumption of innocence. Today’s arbitration ruling reminds the NBA that they can’t ignore that important concept just because it’s a high-profile case,” Rozier’s attorney Jim Trusty said in a statement.

The NBPA had formally challenged the league’s actions, arguing that suspending a player without pay prior to any adjudication of guilt undermines both due process and the foundational labor agreement between the league and its players.

“We are pleased with the arbitrator’s ruling and remain committed to ensuring Terry’s due process rights are protected and that he is afforded the presumption of innocence throughout this process,” a spokesperson for the NBPA added.

Details surrounding the investigation have continued to draw scrutiny. New York Police Commissioner Jessica Tisch stated that Rozier’s alleged involvement dates back to March 2024, when he was still a member of the Charlotte Hornets. Investigators claim Rozier informed associates that he planned to exit a game early due to injury, information that allegedly prompted members of the group to place more than $200,000 in wagers on his “under” performance statistics.

Rozier ultimately left that game after just nine minutes of action, a development that resulted in substantial payouts for those wagers and raised red flags among betting monitors and law enforcement officials.

Despite the ongoing legal process, Rozier remains on the Miami Heat’s roster for the 2025–26 season. However, he has yet to make an appearance on the court, leaving his basketball future uncertain as the investigation continues. For now, the arbitration ruling represents a crucial win for both Rozier and the players’ union, reinforcing contractual protections even as serious allegations remain unresolved.

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