The legal and financial fallout from the NBA gambling scandal continues to mount for Terry Rozier, who has now been ordered to forfeit most of his $26.6 million salary after an arbitrator found he violated the terms of his contract with the Miami Heat.
The ruling marks a dramatic shift from an earlier arbitration victory that appeared to secure Rozier’s pay. According to court filings made public this week, and obtained by NBC News, the arbitrator concluded that Rozier’s pretrial release conditions effectively prevented him from fulfilling his obligations as an NBA player, placing him in breach of his agreement with the Heat for the 2025–26 season.
The decision stems from restrictions imposed after Rozier was indicted in federal court as part of the ongoing gambling investigation. Among those conditions were limits on travel and a prohibition on contacting personnel from both the Miami Heat and the Charlotte Hornets, the team he played for during the period at the center of the case.
The latest development arrives just weeks after Rozier scored a legal win in a separate arbitration proceeding. At that time, an arbitrator found the NBA could not place him on unpaid leave under the league’s collective bargaining agreement, leading to a ruling that his salary should be paid.
But according to filings from his attorney, Jim Trusty, the matter quickly returned to arbitration after payments did not resume.
Now, with free agency approaching, Rozier’s legal team is fighting a different battle. Trusty has asked the court to remove Hornets personnel from the no-contact list, arguing that the restriction could make it impossible for his client to secure future employment in the league.
“Under the current ruling of the arbitrator, an inability to play for or against the Charlotte Hornets would constitute a ‘failure to perform services’ by Mr. Rozier and substantially diminish or eliminate any chance of being contracted by an NBA team,” Trusty wrote in the filing.
The salary dispute is unfolding alongside a widening criminal case. Last month, federal prosecutors expanded the charges against Rozier, adding counts of sports bribery and conspiracy to commit honest services wire fraud. The new allegations came after prosecutors told a federal judge they had developed evidence suggesting Rozier solicited and accepted a $100,000 bribe connected to the alleged scheme.
Rozier was originally charged in October with conspiracy to commit wire fraud and conspiracy to commit money laundering. Prosecutors allege he tipped off associates about plans to leave a March 2023 game early while playing for Charlotte, allowing bettors to place wagers based on information unavailable to the public. He has denied wrongdoing and previously pleaded not guilty.
The broader NBA gambling scandal has already ensnared multiple defendants, including former NBA player and coach Damon Jones, whose case overlaps with the federal betting investigation. Several defendants have also explored plea agreements as prosecutors continue building their case.
Rozier is expected to be arraigned next week on the newly added charges and, according to his attorney, will again enter a not-guilty plea.
