Terry Rozier, Chauncey Billups Won’t Be Paid While On Leave

12:30 pm: Reynolds clarifies (via Twitter) that Rozier’s withheld salary will be placed in an interest-bearing account rather than in escrow.

11:40 am: Heat guard Terry Rozier won’t receive his NBA salary while on leave after being arrested on federal charges related to an illegal betting scheme, reports Tim Reynolds of The Associated Press.

Confirming Reynolds’ report, ESPN’s Shams Charania says those pay checks will be held in escrow, pending the outcome of the FBI’s cases. Charania adds that Trail Blazers head coach Chauncey Billups – who was arrested in a separate but related illegal gambling case – is in the same boat.

Rozier has a cap hit of roughly $26.6MM this season. As Bobby Marks of ESPN tweets, the veteran guard would have received his first of 24 twice-monthly $1,110,126 pay checks later this week. If he’s eventually cleared and permitted to play in the NBA again, he would receive his full withheld salary, a source tells Reynolds.

Although Rozier isn’t being paid, the NBA also isn’t awarding the Heat any immediate cap or luxury tax relief, according to Ira Winderman of The South Florida Sun Sentinel (Twitter links). Winderman hears that discussions about the Heat’s cap situation are ongoing, with Barry Jackson of The Miami Herald (Twitter link) confirming that there’s still a scenario in which the team could be granted some “special” relief even without the league voiding Rozier’s contract.

The Heat are currently operating right up against the luxury tax line and don’t have room to sign a 15th man in free agency without going into the tax.

Federal investigators have accused Rozier of providing inside information about his health to a friend – who sold it to bettors – and pulling himself from a March 2023 game (while he was a member of the Hornets) so that several “under” prop bets would hit. He left that game early, citing a foot injury and didn’t play for the rest of the 2022/23 season.

ESPN’s Paula Lavigne and David Purdum reported on Tuesday that Rozier faced an $8,218,211 tax lien from the Internal Revenue Service later in 2023. However, Rozier’s attorney Jim Trusty told ESPN that his client actually owed the IRS a fraction of that amount.

“Terry never owed anyone $8 million,” Trusty said. “He owed $9,000 of the total $8 million in taxes from 2021, and it has been paid. We just need the IRS to help remove the now-defunct lien.”

Trusty made an appearance on Fox News on Tuesday to further defend his client, as Jackson and Anthony Chiang of The Miami Herald detail, transcribing that interview. Trusty didn’t dispute the idea that Rozier told a friend about his health back in March 2023, but described it as “a situation where a friend took information and ran with it. According to Trusty, the then-Hornets guard never shared information about his availability for the purposes of illegal betting.

“I think the prosecution basically knows it, but they liked the idea of having him as a trophy in this case to kind of mirror the bigger case with Chauncey Billups,” Trusty said. “And I hope over time they will start to realize maybe a little bit of buyer’s remorse. They bit off more than they can chew.

“This is an innocent guy who’s getting completely screwed, to use some legal vernacular, in terms of his career. It’s an 11-year vet. He’s played 1,000 games. They’re latching onto a game where the NBA literally cleared him two years ago and trying to suggest that somehow they know better and that they know he was a conspirator, as opposed to just somebody who had a hurt foot.”