An independent arbitrator ruled Monday that Terry Rozier is entitled to receive his full 2025–26 salary while his federal case proceeds, ending a months-long dispute that had placed the Miami Heat and the National Basketball Association at odds with the players’ union over whether pay could be withheld under the league’s labor rules.
Rozier’s salary, $26.6 million for the season, had been placed into an escrow account after he was indicted in a federal sports-betting investigation and subsequently placed on administrative leave. The National Basketball Players Association challenged that arrangement through arbitration, arguing that the collective bargaining agreement does not permit unpaid leave in this circumstance. The arbitrator agreed, noting that the CBA’s carve-out for withholding pay is limited to specific situations involving domestic violence or child abuse, not an unresolved criminal case.
The decision underscores a central tension the league has been navigating in the sports-betting era: the NBA can remove a player from team activities while a case plays out, but it cannot automatically treat an indictment as guilt for the purpose of compensation. In a statement, the NBPA said it was pleased with the ruling and emphasized due process and the presumption of innocence.
What the ruling does not do is resolve the basketball questions. Rozier remains away from the team while the legal process continues, and the transaction picture remains complicated heading into Thursday’s trade deadline. It is still unclear whether Rozier can be traded under the current circumstances, even as the arbitrator’s ruling ensures the contract continues to be paid and accounted for as written.
