Heavy Loss! Arbitrator Rules: Majority of Rozier's $26.6 Million Salary to Be Deducted

NBA reporter Mike Vorkunov reported that an arbitrator has ruled that the vast majority of former Heat guard Terry Rozier's originally scheduled $26.6 million salary for the 2025-26 season will be legally deducted.

In late October last year, six days after Rozier was arrested on federal gambling-related charges, the NBA imposed an unpaid suspension on him. The 31-year-old player pleaded not guilty in December to charges of conspiracy to commit wire fraud and conspiracy to commit money laundering.

The players' union previously filed an arbitration challenge over the league's decision to withhold his salary and won an earlier ruling. At that time, the arbitrator determined that the NBA's suspension without pay violated the collective bargaining agreement, stating that the league could only enforce unpaid suspensions for players involved in domestic violence or child abuse.

However, the same arbitrator now sided with the NBA, agreeing with the league's argument that Rozier's bail restrictions prevented him from fulfilling his player contract obligations. Due to pending litigation, Rozier is prohibited from interstate travel and cannot contact the Heat or his former team, the Hornets.

Last week, Rozier faced two new felony charges: sports bribery and honest services fraud. Prosecutors allege that in March 2023, while playing for the Hornets, Rozier privately told an acquaintance he would leave the game early; that acquaintance then sold the inside information to bettors, who used Rozier's on-court statistics to wager on his player props and profited. In that game, Rozier played less than 10 minutes in the first quarter, recording 5 points, 4 rebounds, and 2 assists, then exited during a timeout citing a foot injury and never returned.

Rozier has pleaded not guilty to all charges. After being waived by the Heat in April, he still hopes to return to the NBA. His attorney has asked the presiding judge to remove the Hornets' entire team and former staff from the list of prohibited contacts, only restricting Rozier from discussing the case with them. The lawyer claims the current restrictions are "overly punitive and unfair."

In the legal filing, the attorney wrote: "Under the presumption of innocence, Rozier should be treated as innocent, yet he is being forced to miss a second consecutive season. The NBA free agency period opens on June 30, and if he is still barred from contacting the Hornets, he will essentially lose all chance of signing with an NBA team."

"According to this arbitration ruling, being unable to play against or join the Charlotte Hornets will be deemed as Rozier's failure to fulfill his labor contract, drastically—or even completely—eliminating his opportunity to sign with an NBA team."

Regardless of whether the judge grants the defense attorney's request, the probability of Rozier signing another NBA contract before all charges are cleared is extremely low.If convicted, his fate will likely mirror that of Jontay Porter, who received a lifetime ban from the league for leaking inside information to gamblers and was permanently expelled from the NBA.