Miami Heat will cut ties with guard Terry Rozier Friday, freeing a roster spot for a playoff‑ready addition. Rozier has been sidelined since his Oct. 23 arrest amid a sweeping probe into illegal sports betting. He was placed on leave by the NBA shortly after the incident.

Rozier's $26.6 million salary expires this summer, but the money sits in escrow as his not‑guilty plea to conspiracy charges of wire fraud and money laundering hangs in the balance. The trade from Charlotte to Miami in January 2024 sparked scrutiny over whether the Heat knew of the federal investigation before the deal closed.

Charlotte will receive a second‑round pick in June's draft to resolve the dispute, while Miami still owes a 2027 lottery‑protected first‑round pick that could become an unprotected 2028 first if it fails to convey. Commissioner Adam Silver called the situation an "unprecedented situation" during the NBA Cup in Las Vegas, underscoring the league's intent to enforce integrity.

Rozier's exit leaves Miami scrambling to find a guard who can contribute immediately, as the team eyes a deep playoff run. The escrowed salary and legal cloud also force the Heat to reassess their roster construction and compliance protocols. Fans will watch closely to see whether the franchise can navigate the fallout and stay competitive in the Eastern Conference.