The Charlotte Hornets are reportedly sending a 2026 second-round pick to the Miami Heat, per ESPN. Given the trade deadline is over, it might seem confusing to many people as to why the Hornets are sending out a draft pick in the upcoming draft to the Heat. Even more confusing, why does it have anything to do with a Terry Rozier trade that happened over two years ago?
There’s several moving pieces in this situation so let’s break it down to understand everything going on here.
What does Terry Rozier have to do with this?
To answer this, we have to rewind back to January 2024. The Hornets traded Rozier to the Miami Heat on Jan. 23, 2024. It was a deal that was intended to bring the Heat some additional scoring next to Jimmy Butler, Tyler Herro and Bam Adebayo. He was having a career year with the Hornets, who received a 2027 first-round draft pick and veteran guard Kyle Lowry in return. It was considered a great value move for the Heat. My CBS Sports colleague James Herbert gave Miami an A- for the deal.
Rozier’s production and efficiency dipped, but all in all, there were positive results for the Heat with him on the team. He played 64 games the following season (2024-25), though the Heat missed the playoffs after a tumultuous season which saw them trade Butler to the Warriors for a package centered around Andrew Wiggins.
Rozier was expected to suit up for the Heat once again this season, while he was playing on the final year of his contract. However, on Oct. 23, 2025 Rozier, was one of several people arrested as part of a federal investigation into sports gambling and illegal betting.
The investigation alleged that Rozier traded insider, non-public information largely about injuries and illnesses. Specifically, during a March 2023 game between the Hornets and the Pelicans, Rozier (while a member of the Hornets) exited a game after nine minutes and 34 seconds, during which he put up five points, four rebounds and two assists. He allegedly shared with people close to him that he planned to leave the game early. Members of the group being investigated alongside Rozier allegedly placed more than $200,000 in bets on Rozier’s “under” line across multiple prop bets.
In total, there are 10 games being investigated in connection to Rozier spanning from February 2023 to March 2024, two months after he was traded to the Heat.
Since the arrest in October, Rozier has pled not guilty to the two charges of conspiracy to commit wire fraud and conspiracy to commit money laundering in December 2025. His attorneys filed to have the charges dismissed in late December, on the grounds that the federal government overstepped with those allegations.
While initially placed on leave without pay, Rozier and the NBPA won their grievance against the NBA, allowing him to collect his $26.6 million salary for the 2025-26 season while he remains sidelined.
The Heat were previously holding Rozier’s payments in escrow, but have been paying him since February, and will continue to do so until a ruling is made on his case.
Why do the Hornets have to give up a draft pick though?
Back in December, league commissioner Adam Silver said publicly that he might look into providing the Heat some sort of “satisfactory relief” given Rozier couldn’t play until the matter was resolved. However, he didn’t suggest what type of relief that would be, saying, “this is an unprecedented situation.”
It’s a complicated situation given the Heat still owe the Hornets a first-round pick in 2027 (or 2028 depending on if it lands outside the lottery). Miami probably would’ve preferred the right to keep the outgoing pick owed to Charlotte, but the optics of that make it seem like the league is punishing the Hornets for this situation. It’s unclear who knew Rozier was being investigated at the time of the trade, so allowing the Heat to keep that pick makes it look like the Hornets had to of known something.
Instead, the Heat will get a second-round pick in the upcoming draft, which will be the more favorable between the Golden State Warriors and Denver Nuggets picks, per ESPN.
It’s unclear why the league determined a second-round pick was proper compensation, but at least the Heat get something in this whole ordeal.
Fortunately, regardless of what happens with Rozier’s legal problems, his contract comes off the books after the season is over. He’ll be a free agent, and, if cleared of any wrongdoing, would be able to sign with any team this summer.
