Terry Rozier

Lakers Among Several Teams Ordered To Turn Over Cell Phones In Gambling Probe

As part of its investigation into illegal gambling, the NBA has asked several teams, including the Lakers, to turn over documents and other items, six league sources tell Joe Vardon, Mike Vorkunov and Sam Amick of The Athletic.

Prodded by Congress, the league is conducting a probe related to the federal charges brought last month against Heat guard Terry Rozier, Trail Blazers coach Chauncey Billups and former player Damon Jones, who previously served as LeBron James‘ shooting coach and had access to inside information on the Lakers.

The investigation is being handled by the law firm Wachtell, Lipton, Rosen & Katz, which has been contacting teams for access to cell phones, according to the authors. League sources tell them that Lakers assistant trainer Mike Mancias and executive administrator Randy Mims are already cooperating with the investigation and voluntarily turned over their phones.

Vardon, Vorkunov and Amick point out that Mancias has served as James’ personal trainer for the past two decades and Mims has been James’ close friend since high school. Their connections to Jones are expected to be further explored as part of the investigation.

“The NBA engaged an independent law firm to investigate the allegations in the indictment once it was made public,” a league spokesman told The Athletic. “As is standard in these kinds of investigations, a number of different individuals and organizations were asked to preserve documents and records. Everyone has been fully cooperative.”

The authors point out that James, Mancias and Mims haven’t been charged with anything and haven’t been directly named in any charging document. However, their relationship with Jones could be significant, as he’s being accused of selling private injury information to gamblers regarding two Lakers players.

Jones entered a not guilty plea at a federal courthouse in Brooklyn on November 6. The government is accusing him of twice selling information to bettors regarding the injury status of two Lakers stars. The case alleges that Jones found out on the morning of February 9, 2023, that “Player 3” wouldn’t be active that night against Milwaukee and relayed that information to another person, whom he told to place a “big bet” on the Bucks. The authors note that James didn’t play that night.

A similar incident took place for a January 15, 2024, game against Oklahoma City, according to the government’s case.

League sources also tell Vardon, Vorkunov and Amick that at least two executives with teams mentioned in the charges against Jones and Rozier received notice from the league about an expanding investigation.

The authors state that the government also alleges that a “regularly starting player” with the Magic told a gambler that the team planned to rest its starters during an April 2023 game against Cleveland, and that information was sold to other bettors. A league source tells the authors that Orlando officials haven’t been contacted by the Department of Justice and the player in question is no longer with the team.

Illegal bets were placed against Portland with information supplied to gamblers by a coach matching Billups’ description, according to the government, but Billups has only been charged with participating in illegal poker games.

Sources tell the authors that the NBA is in the process of adopting stricter rules for teams to follow in reporting the status of injured players.

Congressional Committee, NBA Meet To Discuss League Gambling

NBA staffers were in Washington, D.C. today to meet with lawyers and aides for the U.S. House of Representatives Energy and Commerce Committee in a discussion about the recent gambling scandals connected to the league, writes Joe Vardon for The Athletic.

The NBA representatives, including league lawyers and a gambling consultant, spent less than an hour answering questions about the charges facing Heat guard Terry Rozier, Trail Blazers coach Chauncey Billups, and former player and coach Damon Jones, among others, Vardon reports, though he adds that requests for additional documents are likely to follow.

The topics in question were the actions the league intends to take to curb bad actors from being able to act on non-public information for their own gain, what the NBA’s Code of Conduct does and doesn’t restrict in terms of such disclosures and acting upon information not yet public, and whether the recent troubles have caused the NBA to reconsider any of its profitable partnerships with gambling companies.

Vardon writes that a separate bipartisan Senate committee has asked for a briefing in writing that covers many of the same topics, while also questioning why Rozier was cleared by the league when the federal investigation was still ongoing and, in fact, resulted in Rozier facing criminal charges.

For what it’s worth, a source in the league office recently told Pablo Torre that while the NBA didn’t find any wrongdoing when it looked into Rozier, it also never formally closed that investigation.

This is a matter of Congressional concern. The integrity of NBA games must be trustworthy and free from the influence of organized crime or gambling-related activity,” wrote Senators Ted Cruz and Maria Cantwell in a statement. “Sports betting scandals like this one may lead the American public to assume that all sports are corrupt. As Chairman and Ranking Member of the Senate Commerce Committee, which has jurisdiction over professional sports, and as dedicated basketball fans, we want to ensure the NBA is protecting the integrity of the sport.”

Vardon notes that the House committee also previously sent a letter to the NCAA about the recent announcement that collegiate athletes and coaches could bet on pro sports.

Neither NBA commissioner Adam Silver nor deputy commissioner Mark Tatum were in attendance at today’s meeting, according to Marc Stein of the Stein Line (Twitter link).

Heat Notes: Ware, Defense, Powell, Lawsuit, LaRoche

Heat second-year big man Kel’el Ware is experiencing growing pains and his playing time has been shaved. He was on the court for just 11 minutes and 30 seconds in a loss to the Lakers on Sunday, Anthony Chiang of the Miami Herald notes.

“I wouldn’t say it’s frustrating,” Ware said of his usage. “I feel like you got to trust the coach and the decisions that he comes up with. And then you got to go from there and be ready when your name is called.”

Entering Monday’s matchup against the Clippers, the Heat have been outscored by 10 points per 100 possessions with Ware on the court this season, according to Chiang. No other Miami rotation player has a worse net rating.

“We’re not going to give up on him,” frontcourt partner Bam Adebayo said. “We know how great he can be. He moves the needle for this team.”

Here’s more on the Heat:

  • The Heat’s defense in general was poor against the Lakers, as they gave up 130 points. They are 0-2 on their current road trip. “It really boiled down to a lack of effort on plays that we’re accustomed to doing and making, and/or mindless plays,” coach Erik Spoelstra said, per Chiang. “Either fouls or just things that we haven’t been doing. So you do have to credit them, but we’re much better defensively than we showed (Sunday). That’s probably what’s really frustrating.”
  • Norman Powell missed his third straight game on Sunday because of a right groin strain, Chiang adds. Powell was listed as questionable for Sunday’s contest before being ruled out a few hours before tip-off. He’s considered questionable to play against the Clippers, who dealt him to the Heat in July as part of a three-team trade.
  • Will the Heat sue the Hornets for their failure to disclose gambling allegations against Terry Rozier before they traded him to Miami in January 2024? The Miami Herald’s Barry Jackson believes it’s unlikely, noting that Heat owner Micky Arison and his son, team CEO Nick Arison, are not predisposed to filing lawsuits. The NBA was immediately informed of the suspicious betting activity the day it happened and did not inform the Heat at that time or before it approved the trade, according to Jackson’s sources. However, the Arisons have a strong relationship with commissioner Adam Silver.
  • Noah LaRoche has been a significant addition to the staff, Chiang writes. He was brought in this season as a consultant after being an assistant with the Grizzlies before last season. LaRoche was credited with helping to install a more free-flowing, motion-based offense with Memphis and is doing the same with the Heat.

Heat Notes: Powell, Rozier, Herro, Jakucionis, Morant, LaRoche

Heat guard Norman Powell is in the final year of his contract, which will pay him $20.48MM in 2025/26. He will remain extension-eligible through June 30, 2026, and if a deal is not reached he will become an unrestricted free agent.

According to Anthony Chiang of The Miami Herald, Powell recently made it clear he hopes to sign a long-term extension with the Heat.

I love it here. I love everything about the Heat,” Powell emphasized. “I loved them before. They were on my list before I signed my extension in Portland. I wanted to come here and play for the Heat. So I’m excited. I like the culture. I like what they have going on here. I like the mentality and the approach. I feel like they take guys to the next level. They push them past their own expectations, they have high standards. And I always like being around people that have high aspirations and high goals for themselves. It fits who I am, so I want to be here. Hopefully they feel the same way.”

As Chiang writes, Powell was off to a hot start to the season, averaging 24.0 points, 7.3 rebounds, 3.0 assists and 2.0 steals on .477/.500/.913 shooting in three games (31.0 minutes per contest) before suffering a right groin strain that has caused him to miss the past two. The 32-year-old is questionable for Sunday’s contest at the Lakers.

Hopefully [the Heat] like everything that’s happened so far and what I bring to the table outside of just on the court,” said Powell, who recently described himself as “super low-maintenance.” “But just who I am every single day, stepping into the arena, integrating myself with the team and the staff and the members around. Hopefully everybody appreciates my presence and we’ll be able to get something done. But, yeah, I want to be here.”

Here’s more on the Heat:

  • Ira Winderman of The South Florida Sun Sentinel lists the short-term steps he believes commissioner Adam Silver should take to give the Heat more cap and roster flexibility in the wake of Terry Rozier‘s arrest — the veteran guard is facing two federal charges as part of an illegal gambling probe. While the information isn’t really relevant now, a source tells Winderman that the Heat considered waiving Rozier before the season began (a small portion of his contract was non-guaranteed at the time) and also had buyout discussions with the 31-year-old.
  • All-Star Tyler Herro (left ankle surgery) and rookie guard Kasparas Jakucionis (right groin strain) are traveling with the team on its current four-game road trip, which ends Wednesday in Denver, per Chiang of The Miami Herald. “It’s good for them,” Heat coach Erik Spoelstra said about Herro and Jakucionis joining the team on the road. “For us, sure, it’s always good to have them around. But I think it just speeds up the whole process when they’re around the guys, around the game, around the whole travel routine, and participating in some of the things that they can do, which they did this morning.” Both players are out on Sunday, though Jakucionis is closer to making his season debut — the 2025 first-round pick is considered day-to-day.
  • Although the Heat have expressed “more than passing” interest in Ja Morant in the past, Winderman doesn’t expect the team to explore the possibility of buying low on the Grizzlies guard in the wake of his latest off-court incident, which resulted in a one-game suspension for detrimental conduct following a disagreement with the coaching staff.
  • Speaking of the Grizzlies, former Memphis assistant coach Noah LaRoche is now a consultant with the Heat, who have implemented the movement-heavy offense LaRoche was in charge of last season with Memphis, sources tell Brian Windhorst of ESPN. It’s only been five games, but the Heat currently rank seventh in the league in offensive efficiency after finishing 21st, 21st and 25th in the league in that category over the past three years, Windhorst notes. “You know Spo is running the polar opposite of the system that [Heat president] Pat Riley used to run, where he called every play and each play design was exact,” a league executive said. “And it makes me further appreciate and respect that the organization is about the right s–t. They’re about exploring and teaching in Miami.”

NBA Investigators Reportedly Never Cleared Rozier, Still Looking At Beasley

Despite his lawyer’s assertion that the NBA “cleared him two years ago,” Terry Rozier was never technically cleared of wrongdoing after the league looked into suspicious betting activity involving the guard in 2023, a source in the league office tells investigative reporter and podcaster Pablo Torre (Twitter video link).

“Terry’s investigation was never closed, so he was not cleared of anything,” that source said. “Us not being able to find something is not the same as cleared. It is true we did not find a violation of our rules, but we did not close our investigation.”

As Torre outlines, the NBA hired the law firm Wachtell, Lipton, Rosen & Katz to investigate Rozier following a flurry of activity on his “under” prop bets prior to a March 23, 2023 game when he was a member of the Hornets.

According to Torre, Rozier was interviewed via Zoom and turned over his phone to investigators, who looked for specific search terms. After not finding a “smoking gun,” those investigators ultimately deferred to the feds, while the guard was permitted to continue playing, first for the Hornets and later for the Heat.

Rozier is now facing charges of conspiracy to commit wire fraud and conspiracy to commit money laundering after being accused of telling his friend – and co-defendant – De’Niro Laster that he would remove himself early from that March 2023 game.

According to a federal indictment, Laster was paid $100K for sharing that information with another defendant, Marves Fairley. The tip was then allegedly shared with others, resulting in the group wagering $259K on those “under” prop bets, which hit after Rozier left the game in the first quarter with a foot injury. Prosecutors allege that winnings were later delivered to and counted at Rozier’s home.

Veteran NBA sharpshooter Malik Beasley has also been investigated by the U.S. Attorney’s Office for the Eastern District of New York and the NBA for possible illegal betting activity, and Torre hears from sources that both of those investigations are still ongoing.

According to Torre, the NBA previously looked at Beasley for bets he made on other sports. While he was cleared in that case, the league hasn’t yet closed its latest probe, despite so far finding “no hard evidence of Beasley altering his performance or communicating with gamblers to tip his performances,” per a league office source.

Beasley remains unsigned, with news of the investigation having broken just before he officially became a free agent this summer.

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

3:08 pm: The National Basketball Players Association has put out the following statement in response to the NBA’s decision to withhold Rozier’s salary, according to ESPN’s Bobby Marks (Twitter link):

“While we are in agreement with the league that upholding the integrity of the game is of the utmost importance, their decision to place Terry on leave without pay is counter to the presumption of innocence and inconsistent with the terms of our Collective Bargaining Agreement,” an NBPA spokesperson said. “We plan to challenge their decision via the proper channels.”


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 – also isn’t being paid.

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.”

Southeast Notes: Young, Magic, Miller, Hornets, Heat

The Hawks opted not to pursue contract extensions with stars Trae Young or Kristaps Porzingis ahead of the 2025/26 season, deciding instead to assess the fit of the roster in the coming months before determining whether to commit long-term to their current core. Although Young admitted late last month that he was a little disappointed about entering training camp without a new deal in place, he told Ohm Youngmisuk of ESPN he’s not stressing about the situation.

“I think it’s going to be great. I’m not worried about it,” Young said. “As much as I wish it was, it’s not all in my hands and I can’t control everything. I just can only control the present. And I know if we win, everybody eats … I understand what winning can do. If certain things don’t go my way as far as injuries, health and stuff that I can’t control, that may be the man above telling me there’s another plan for me. I’m focused on making sure all my guys, (head coach) Quin (Snyder) included, get taken care of and succeed.”

The Hawks have dealt with some health issues to open the season, but had three starters back in the lineup on Monday, as Jalen Johnson (right ankle sprain), Porzingis (flu-like symptoms), and Zaccharie Risacher (right ankle sprain) all returned from brief absences. It wasn’t enough to beat the Bulls though, as Atlanta fell 128-123 to drop to 1-3 in the first week of the season.

Still, Young expressed to Youngmisuk that he’s bullish about the amount of talent on the Hawks’ new-look roster, as well as the opportunity to play alongside a big man like Porzingis.

“I haven’t had a guy like him in the NBA,” Young said. “So I think you’ll be able to really see what different things that I can do with a guy that can pick and pop and spread the defense, spread the five man out to 30 feet. I think you’ll be able to see a lot of different things that I haven’t been able to show in the past, too. Hopefully this year I get a lot more catch-and-shoot shots, something that a lot people don’t think I can do.”

Here’s more from around the Southeast:

  • Atlanta isn’t the only Southeast team off to a slow start after upgrading its roster this offseason. The Magic lost a third straight game on Monday, prompting Josh Robbins of The Athletic and Jason Beede of The Orlando Sentinel (subscription required) to explore whether the club will be able to play the uptempo style of offense it wants to while maintaining its defensive identity. “I think you can do both,” Magic guard Jalen Suggs said. “… A lot of what we’re talking about and trying to put emphasis on is getting out, playing fast, getting good looks, crashing (the offensive boards) … It just takes being very detailed and a concerted effort to then get back on defense after all that and sit down and get stops.”
  • Hornets forward Brandon Miller is seeking a second opinion on his injured shoulder, NBA insider Chris Haynes said during an appearance on The Association on NBA TV (Twitter video link). Miller’s injury – a left shoulder subluxation – is one that can be treated either surgically or non-surgically depending on the severity, so he and the Hornets are likely weighing all his options as they consider the best path forward for the former No. 2 overall pick.
  • Exploring whether the Heat have a case for compensation after not being informed of an NBA investigation into Terry Rozier before they acquired him from the Hornets in January 2024, Anthony Chiang of The Miami Herald speaks to ESPN’s Bobby Marks about what Marks calls an “unprecedented situation.” The Hornets haven’t said one way or another whether they knew about the investigation into unusual betting related to Rozier when they made the deal. “It’s a gray area that I think the league is going to have to look long and hard at,” Marks told Chiang. “When players are being investigated and are part of trade discussions, do they have the authority and morality to disclose that information? Because on the other end, legal will say, ‘Well, wait a minute. If we disclose it and the guy is not guilty, then we’ve just harmed the trade.'” Marks added that the Heat are “highly unlikely” to recoup the first-round pick they gave up for Rozier.

NBA Seeking To Tighten Controls On Injury Reporting, Prop Betting

In the aftermath of the FBI’s arrests of Heat guard Terry Rozier, Trail Blazers coach Chauncey Billups and former player Damon Jones last week, the NBA informed its teams that the league has begun a process of reviewing policies regarding injury reporting, training and education of all personnel, ESPN’s Shams Charania reports (Twitter link). The memo also specifically addresses concerns regarding gambling, with the league exploring ways to enhance internal and external monitoring programs to identify suspicious betting activity.

Injury reporting has jumped into the spotlight in light of the allegations against Billups and Jones. While the most serious allegations against Billups regard his involvement in rigged poker games, Billups was also accused of providing inside information that could potentially be used by others for betting purposes. According to the indictment, an unnamed co-conspirator (Billups) told Eric Earnest, another of the defendants, that the Trail Blazers were going into tank mode ahead of a game on March 24, 2023 and that a certain player, purportedly star guard Damian Lillard, would sit out.

Along similar lines, Jones allegedly informed an unnamed co-conspirator prior to the Lakers‘ game vs. Milwaukee on February 9, 2023 that a specific Laker would miss the game and that the co-conspirator should bet on the Bucks. That player was later identified as LeBron James. James reportedly wasn’t aware that Jones was sharing information about his playing status.

NBA teams typically provide injury reports the day prior to a game but there is a gap in time during game days before the final injury report prior to tip-off is revealed.

The memo also specifically addressed Rozier’s situation. Rozier was accused of essentially taking himself out of a game due to injury so that prop bets on “unders” could be cashed.

The memo obtained by Charania (Twitter link) stated, “While the unusual betting on Terry Rozier’s ‘unders’ in the March 2023 game was detected in real time because the bets were placed legally, we believe there is more that can be done from a legal/regulatory perspective to protect the integrity of the NBA and our affiliated leagues. In particular, proposition bets on individual player performance involve heightened integrity concerns and require additional scrutiny.”

Prior to the FBI’s arrests, Rozier had been cleared by the league during its investigation and was in uniform for Miami’s opener, though he did not play. Commissioner Adam Silver stated last week the FBI had broader powers to conduct a more thorough investigation. Silver had also expressed growing concerns with regard to prop bets.

Charania shared the entire league memo on social media (Twitter link).

Heat Notes: Fontecchio, Rozier, Hornets Trade, Offense

Forward Simone Fontecchio was acquired by the Heat this summer in a sign-and-trade deal that sent Duncan Robinson to Detroit.

Head coach Erik Spoelstra was familiar with Fontecchio’s game, having extensively scouted his play with the Italian national team during the 2023 and 2024 offseasons while serving as an assistant with Team USA, according to Ira Winderman of The South Florida Sun Sentinel.

Italy was my scout, so I literally watched every single one of his games for two years over there,” said Spoelstra, who has since been promoted to Team USA head coach. “He’s an explosive number-one option for Italy. When you shoulder those kinds of responsibilities and have everyone game-planning against you, yet still are able to have big games, that was really impressive.”

It was unclear how much Fontecchio would play for Miami this season after a disappointing ’24/25 campaign with the Pistons in which he shot just 33.5% from long distance. But he has been in the rotation ahead of young players like Pelle Larsson to this point, Winderman writes, and has gotten off to a strong start through two games, averaging 13.5 PPG, 3.0 RPG, 1.5 APG and 1.0 SPG in 21.0 MPG.

For us, it’s a different option,” Spoelstra said. “We like his competitiveness. He, obviously, can really shoot the ball, but he’s not limited to that. He’s able to do other things like put the ball on the floor, fly off screens or just space off of your better players. We’re just really thankful that we have him with us.”

Here’s more on the Heat:

  • In the wake of Terry Rozier‘s arrest — he’s facing charges of conspiracy to commit wire fraud and conspiracy to commit money laundering after being accused of removing himself from a March 2023 game (when he was a member of the Hornets) so that several “under” prop bets would hit — Winderman argues the NBA should “right a wrong” and either rescind the first-round pick Miami owes Charlotte or give the Heat a compensatory first-rounder. As Winderman explains, the Heat reportedly didn’t know about the incident when they traded for Rozier in January 2024, nor were they aware of any league investigation into the matter. If Miami was granted a compensatory pick, the team would have its full complement of future first-rounders available to trade — the Heat are currently limited by the Stepien rule, Winderman notes.
  • In a mailbag for The Sun Sentinel, Winderman says the league could also opt to remove Rozier’s salary from the Heat’s cap sheet while his legal situation plays out. The 31-year-old would still continue to be paid in Winderman’s hypothetical, but not counting against the team’s books would give Miami much more financial flexibility, both now and going forward.
  • The Heat have been pleased with their new uptempo offense through two games, but they want to make sure it’s firing on all cylinders for an entire season, per Anthony Chiang of The Miami Herald. “Playing with a pace like this, you love to see everybody collectively having fun, everybody getting to touch the ball,” Bam Adebayo said. “You can’t really scout plays for us. There are no plays. In the whole first half [Friday against the Grizzlies], I don’t think Spo ran a play. We’re trying to make it last all season. It’s fun when we play like this. It’s fun when we can get up and down, and run with that pace. And obviously, we need to make shots to dictate that. But our thing is just to keep playing this style of basketball, where there’s no hold. We’re swinging, we’re cutting. It’s hard to scout a team when everybody is live. So that’s what we’re trying to get to and that’s starting to be our identity.”

Heat Didn’t Know About Terry Rozier Investigation When Trade Took Place

The Heat weren’t aware that Terry Rozier was under suspicion of illegal gambling activity when they acquired him from Charlotte in January 2024, multiple sources tell Barry Jackson and Anthony Chiang of The Miami Herald.

Rozier was arrested Thursday by the FBI as part of a federal investigation into illegal sports betting, jeopardizing his basketball future and raising plenty of questions about what the move means for the team. Without action from commissioner Adam Silver, Rozier and his expiring $26.6MM salary will remain on Miami’s roster for the rest of the season.

The NBA was alerted to unusual betting activity regarding Rozier 10 months before the trade took place, but the league has a policy of not informing its teams about such matters, according to Jackson and Chiang.

No warning was given to the Heat before the league approved the trade, which sent veteran guard Kyle Lowry and a first-round pick to Charlotte, multiple sources told the authors. Their sources also said Hornets officials didn’t share information about the probe with the Heat, and Mike Cristaldi, Charlotte’s chief communications officer, refused to say whether they were aware of the allegations against Rozier.

The Heat didn’t learn that Rozier was being investigated by the NBA and FBI until it was reported by the Wall Street Journal after the trade was complete, according to the authors.

They describe the team as being in “information gathering mode” and still undecided on whether it will appeal to the league in an effort to get back the draft pick that’s now owned by the Hornets. That pick will convey to Charlotte in 2027 if the Heat reach the playoffs that season. Otherwise, it becomes unprotected in 2028.

Two spokesmen from the league office refused to explain to Jackson and Chiang why the NBA doesn’t inform all its teams when unusual betting activity is detected or whenever it opens an investigation into a player. The authors point out that having that information might have dissuaded Miami from trying to trade for Rozier.

They add that the NBA has declined to say whether Silver would consider voiding Rozier’s contract before the case is decided in federal court. The team currently can’t sign a replacement for Rozier or fill its open roster spot without moving into luxury tax territory. If Rozier were to be expelled from the NBA, the Heat would be about $28MM below the tax threshold, giving them plenty of room to sign two players and fill out their roster.

Jackson and Chiang point out that having the draft pick returned would provide a lot more flexibility in trade talks, giving Miami tradable first-rounders in 2026, 2028, 2030 and 2032. The team is currently limited to trading no more than two future picks (2030 and 2032).

The NBA office denied a report from ESPN’s Brian Windhorst that the league ordered Rozier to be benched after he left the game that prompted the investigation, the authors add. A league spokesman said Rozier suffered a foot injury that was confirmed by an MRI.