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Tim Bontemps
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Tim Bontemps
ESPN Senior Writer
- Tim Bontemps is a senior NBA writer for ESPN.com who covers the league and what’s impacting it on and off the court, including trade deadline intel, expansion and his MVP Straw Polls. You can find Tim alongside Brian Windhorst and Tim MacMahon on The Hoop Collective podcast.
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Bobby Marks
On Monday afternoon, Miami Heat guard Terry Rozier is scheduled to enter a federal courthouse in Brooklyn and officially be arraigned as part of a wide-ranging investigation into illegal sports betting.
Rozier is accused of participating in a betting scheme, using insider NBA information while he was a member of the Charlotte Hornets, after suspicious prop betting involving his stats occurred in a road game against the New Orleans Pelicans on March 23, 2023. The league conducted an investigation and didn’t find that Rozier had violated NBA rules. He was later traded to the Miami Heat on Jan. 23, 2024.
And while focus remains on Rozier’s legal case, there is more to watch from a leaguewide perspective.
From issues with the trade — what was required to be disclosed between the league, the Heat and Hornets, and what recourse Miami might have — to what could happen if the Heat attempt to move Rozier before the Feb. 5 trade deadline, here’s a look at where things stand for all parties involved and what some league insiders think could be next.
What is Miami’s issue with the trade?
Sources told ESPN that the Heat were not aware of the NBA’s investigation when they traded for Rozier, whom they acquired for a 2027 lottery-protected first-round pick and guard Kyle Lowry while trying to make another deep playoff run. Instead, Rozier did not appear in a playoff game for Miami, playing 95 games across two regular seasons and averaging 12.5 points on 40.4% shooting.
The Hornets, when asked by ESPN whether they were aware of the league’s investigation before the trade, declined to comment.
After its investigation, the NBA didn’t find that Rozier had violated league rules. But the league insisted after Rozier was arrested in October that it did not «clear» him of wrongdoing. Sources familiar with the situation told ESPN that the NBA was not aware of the federal investigation before the trade.
The Heat learned of the league’s investigation into Rozier in January, a year after the trade, when The Wall Street Journal reported that he was under federal investigation, and they were unhappy to have not known before the trade, sources said.
Which raises the question: Should the league’s investigation have been disclosed on that trade call?
What is the NBA trade confirmation process? What is required to be disclosed?
When teams agree to a trade, the involved parties have a conference call with the NBA to review the specifics of the deal. This might seem like a formality, but in rare cases, miscommunications can derail a deal — such as the memorable breakdown of a three-team trade in 2018 because the Memphis Grizzlies believed MarShon Brooks was being traded, while the Phoenix Suns believed it was Dillon Brooks.
Before last season’s trade deadline, the NBA sent teams a memo, which was obtained by ESPN, that included, «Please be reminded that teams involved in a trade must exchange certain health and insurance information prior to the trade.»
Teams are required to share contractual, medical and insurance information, along with other material that would have prevented any player involved in a trade from playing. That information is also shared with the NBA, as required by the league’s operations manual and constitution by-laws. There were no red flags medically that would have prevented the Rozier trade.
But the operations manual and constitution by-laws state, «No Member shall make any other material misrepresentation or fail to disclose any other material information during the trade call.»
The question then becomes whether the investigation into Rozier falls under «material information.»
The operations manual also states, «If any Member is found, after a hearing before the Commissioner, to have violated subsections (a) or (b) above, the Member shall be subject to penalty. Such penalty shall be within the absolute and sole discretion of the Commissioner and may include a fine (not to exceed $1,000,000), suspension of the offending employee, rescission of the Assignment Transaction, and/or forfeiture or transfer of the offending Member’s draft choices.»
In our conversations around the league, there were differing opinions on whether the investigation should have been disclosed. Multiple executives called it a «gray area» with no clear answer.
«The league might exonerate a player, but they always have the right to open the investigation if they learn of new information,» one team executive told ESPN. «Because of that, the Rozier investigation should have been disclosed by the NBA and Hornets.»
Another team executive agreed but warned of a slippery slope, especially if the league did not find wrongdoing.
«On one hand, you understand why the Heat should have the right to know,» the executive said. «On the other hand, what happens if the NBA discloses [the investigation] even if there is no violation, and the acquiring team backs out of the trade?»
«It’s not directly called for [to disclose it],» a third team executive said. «You’d think to be a good partner, you’d disclose that, but it’s not necessary as part of the trade. If I’m in Charlotte’s shoes, I understand why they didn’t.»
Will the NBA change its trade disclosure rules?
Setting aside the possibility of a grievance, the other question is whether the league will update its disclosure rules to account for a situation like this, especially as legal sports betting expands rapidly in the U.S.
Multiple high-ranking team executives told ESPN they thought it was something the NBA would look at, just like the league has, over time, created a set of rules regarding injury disclosures in trades.
Other sources, both at the team and league levels, cautioned against such a decision. What if, as some of them suggested, Rozier is acquitted or sees his charges dropped in the federal case, after the league already decided no rules had been violated? Would that be fair to the player or team?
What recourse do the Heat have? Could they win a grievance with the NBA?
Miami can file a grievance with the league for not being informed about the investigation before the trade. Sources told ESPN that the Heat haven’t decided. Despite the trade occurring nearly two years ago, no statute of limitations exists on filing a grievance.
One complicating factor is that trade has not been fully completed. The 2027 lottery-protected first-round pick — it would become a 2028 unprotected first-rounder if the Heat miss the playoffs in 2027 — has yet to convey, leaving something for the Heat to potentially fight to regain. But multiple sources across the league told ESPN they see no path to Miami winning a grievance with the league over this trade.
Miami, because of various past deals, can’t trade any of its first-round picks from 2026 through 2029. Because of the Stepien Rule, which prevents teams from trading first-round picks from consecutive seasons, the Heat can trade a maximum of two first-rounders (2030 and 2032) in the lead-up to the Feb. 5 trade deadline. (Miami can trade pick swaps from up to four other seasons through 2031.)
Getting its pick back from Charlotte, though unlikely, would give Miami its full allotment of picks to use in trades.
It’s rare that a team files a grievance, no matter the situation. The Hornets, for example, were frustrated over February’s rescinded trade that would’ve sent center Mark Williams to the Los Angeles Lakers. But no grievance was filed.
Some owners, such as former Dallas Mavericks governor Mark Cuban, have publicly addressed what they believe are issues with the league’s operations. Others, such as Heat owner Micky Arison, rarely air issues publicly.
One notable exception was in 2011, when Arison granted a rare interview with local media to announce he had been one of five «no» votes on the collective bargaining agreement that ended that season’s lockout, citing a disagreement with how the league was conducting revenue sharing. But Arison emphasized it was a symbolic vote, and that he had fought to push through the new CBA.
Can the Heat trade Rozier?
Sources told ESPN that it remains unclear what would happen if the Heat were to try to trade Rozier before the Feb. 5 trade deadline.
No team will be interested in acquiring Rozier to play for them, as he, like Portland Trail Blazers coach Chauncey Billups, has been put on leave by the NBA. However, Rozier does have a $26.6 million expiring contract that could secure help for Miami’s current roster and allow the receiving team to save some money on its future books.
Though there isn’t guidance from the NBA as to whether the Heat could move Rozier, the fact that he is still on the roster is a sign the Heat believe it is a possibility. And there is precedent to believe that.
Kevin Porter Jr. was arrested in September 2023 and charged with assault and strangulation, but was traded a month later to the Oklahoma City Thunder, who immediately waived him. A similar situation could play out with Rozier.
Sources expect that, if the Heat got close to trading Rozier, only then would Miami ask the league for clarity on whether such a trade would be allowed.
