Terry Rozier Wins Arbitration Against the NBA: 26.6 Million Salary Unfrozen
Despite a federal indictment, Terry Rozier secures a key victory against the NBA. More than $26 million is released following an appeal by the NBPA
The legal battle between Terry Rozier and the NBA marks an important turning point on both contractual and legal grounds. An independent arbitrator ruled in favor of the Miami Heat guard in the dispute over the freezing of his salary, determining that the League could not suspend payments without meeting the conditions set out in the Collective Bargaining Agreement (CBA).
A decision that goes beyond this single case and touches on a core principle: the presumption of innocence.
Salary in Escrow: Why the Arbitrator Ruled for Rozier
Terry Rozier’s salary – approximately $26.6 million for the 2025–26 season – had been placed in escrow starting in December, a measure that deposits the money into a restricted account instead of paying it directly to the player. The move followed a federal indictment related to an investigation into sports betting.
According to the arbitration ruling, the NBA’s CBA allows placement on unpaid leave only in specific circumstances, such as cases involving domestic abuse or abuse of minors. The charges against Rozier do not fall into those categories, making the salary freeze illegitimate.
As a result, the arbitrator ordered the immediate release of the salary.
The Defense’s Position: “The NBA Cannot Ignore the Presumption of Innocence”
Highlighting the significance of the ruling was Rozier’s attorney, Jim Trusty, who framed the verdict not only as a contractual issue, but as a broader legal principle:
Terry won today based on contract law and the CBA between the League and the players, but the most important principle at stake is the presumption of innocence. This decision reminds the NBA that it cannot be ignored simply because this is a high-profile case.
Jim Trusty
A clear message that could have implications for similar cases in the future.
The Role of the NBPA and the Clash With the League
The initial agreement between the NBA and the Miami Heat to place Rozier’s salary in escrow was challenged by the National Basketball Players Association (NBPA), which filed an appeal on the player’s behalf.
Following the ruling, the union reaffirmed its stance:
We are pleased with the arbitrator’s decision and remain committed to ensuring that Terry’s rights are protected and that he is afforded the presumption of innocence throughout the entire process.
NBPA
The NBA, when contacted for comment, declined to issue an official statement.
Federal Charges and the Status of the Case
On the criminal side, the case remains unresolved. Rozier has pleaded not guilty to charges of conspiracy to commit wire fraud and money laundering. His legal team filed a motion to dismiss the case in December, arguing government overreach. A response from prosecutors is expected soon.
According to federal authorities, Rozier allegedly informed an acquaintance of his intention to exit a March 2023 game early while he was with the Charlotte Hornets. That information allegedly reached bettors, who then wagered more than $200,000 on the under for his statistical performance.
Basketball Situation: On the Roster, Still Without Minutes
Despite the ongoing legal proceedings, Rozier remains on the Miami Heat roster, though he has yet to appear in a game this season. The arbitration ruling does not directly affect his on-court availability, but it does remove a major source of financial and contractual pressure.