Miami tried to keep Terry Rozier’s salary in escrow while his federal gambling case played out. An arbitrator just told the Heat they cannot do that, ordering the team to release Rozier’s full $26.6 million for the 2025–26 season.
The ruling lands in the middle of Super Bowl week betting scrutiny, but this story is not about spreads. It is about how quickly a betting investigation turns into a labor dispute, and how little room teams have to improvise around the NBA’s pay rules once a player is on administrative leave.
Why Miami’s escrow move didn’t hold up
After Rozier’s October 2025 arrest, Miami placed him on administrative leave and began depositing his paychecks into an interest-bearing escrow account. The NBPA filed a grievance, arguing the CBA does not allow unpaid leave in this situation.
The arbitrator agreed. Reporting on the decision says salary withholding is only permitted in narrow categories, including domestic abuse or child abuse provisions, meaning Miami lacked a CBA-approved mechanism to keep his wages withheld while the criminal case remains pending.
The betting case behind the dispute, and what comes next
Federal prosecutors have charged Rozier with wire fraud conspiracy and money laundering conspiracy tied to a broader sports betting investigation. The DOJ has described the wider scheme as using nonpublic information to place fraudulent wagers, and Reuters reported the Rozier allegations relate to tipping gamblers about leaving a March 2023 game early while he played for Charlotte.
On Miami’s side, the ruling does not create salary-cap relief. It does, however, remove the team’s escrow workaround and complicates roster planning because Rozier is in the final year of his deal and his status remains unresolved. The next markers are in court: charging milestones and pretrial movement that could drive any league response and determine whether Miami can realistically move the contract.
