Miami Heat Face Critical Decision on Terry Rozier Ahead of January 7 Deadline

The Miami Heat are approaching a pivotal moment in their 2025-26 season, with a major decision looming over the future of guard Terry Rozier. NBA rules stipulate that teams must waive players on non-guaranteed contracts by January 7 to avoid paying their full season salary, and Rozier’s situation has placed the Heat in a complicated position.

Rozier, who is owed $26.6 million this season, has only $1.7 million non-guaranteed, according to NBA insider Bobby Marks. While that figure may seem minor relative to the overall salary, it carries significant implications for the Heat’s roster flexibility and salary-cap management. Marks noted, “When you look at it from Miami’s perspective, I think we’ll have an idea if the Rozier contract will be in play at the deadline, or if it’s better off basically cutting him now if there is uncertainty if you can’t use that. Because even if it’s $1.7M in cap relief, Miami is $1.6M under the luxury tax right now. You add that, it’ll be $3.3M below the tax. That gets you two players to go out and sign to fill out your roster. Maybe it’s a buyout guy or a trade out there that makes sense because Miami has some trade exceptions also.”

Rozier’s situation has effectively limited the Heat’s ability to improve the roster, tying up a significant salary for a player who cannot currently participate due to a league-mandated leave of absence. This has prevented Miami from fully utilizing its cap space or making moves to address depth needs, creating a challenging scenario for President Pat Riley and the front office.

Rozier Remains a Trade Asset

Despite the looming January 7 deadline, reports suggest that the Heat are unlikely to waive Rozier before the cutoff, according to Anthony Chiang of the Miami Herald. Waiving Rozier would free up cap space but also eliminate the team’s ability to include him in a trade—something the Heat may view as more valuable.

Rozier represents a potentially critical trade piece, as his $26.6 million salary could help balance the books for teams looking to acquire him, while providing Miami with a contract that will expire after the season. If a trade is executed, the Heat would gain flexibility, either in the form of additional players, draft assets, or cap space for future signings.

Miami is reportedly prepared to seek clarity from the league office if Rozier is included in trade discussions. While the Heat may not receive their first-round draft pick back from the previous trade with Charlotte, the NBA could provide salary relief or trade approval, mitigating the impact of Rozier’s complex situation.

Background: How Miami Got Here

The Rozier saga has its roots in a series of off-court incidents and investigations. Rozier was originally traded to the Heat in January 2024, in a deal that sent Kyle Lowry and a first-round pick to the Charlotte Hornets. The trade followed an NBA investigation triggered by unusual betting activity during a March 2023 game against the New Orleans Pelicans, when Rozier left early citing a foot issue.

Although the NBA cleared Rozier in that investigation, he was later arrested in connection with a federal investigation into illegal sports betting. Neither the NBA nor Charlotte disclosed this ongoing investigation to Miami prior to the trade, placing the team in an unprecedented and complicated situation.

NBA Commissioner Adam Silver has indicated that the league intends to offer relief to the Heat, though the specifics remain unclear. While it is unlikely Miami will receive the first-round pick originally traded to Charlotte, options for relief could include salary cap adjustments or permission to trade Rozier, giving the team a path forward.

Strategic Considerations for Miami

From a team-building perspective, Rozier’s status has been a limiting factor. The Heat are currently $1.6 million under the luxury tax, and even minor adjustments, such as the $1.7 million non-guaranteed portion of Rozier’s salary, could provide additional flexibility. That money could be used to sign a buyout candidate, fill gaps on the roster, or facilitate a trade.

Rozier’s ability to be included in a trade is particularly significant given Miami’s desire to maximize roster efficiency while remaining competitive in the Eastern Conference. His expiring contract, combined with his skills as a scorer and floor spacer, makes him a valuable commodity for potential suitors.

As the Heat navigate this situation, the decision will have implications both short-term and long-term. In the immediate term, it affects roster construction and cap management. Looking ahead, it will impact strategic planning for free agency and the 2026 draft, as Miami attempts to balance championship contention with prudent financial management.

The Road Ahead

The upcoming January 7 deadline looms large, but the Heat appear to be taking a measured approach, avoiding rash decisions while evaluating trade possibilities and waiting for clarity from the NBA. Fans, analysts, and team executives alike will be closely monitoring developments, as the outcome will influence Miami’s ability to compete this season and shape the franchise’s future trajectory.

Rozier’s saga underscores the challenges NBA teams face when dealing with non-guaranteed contracts, legal complications, and roster constraints simultaneously. For the Miami Heat, the path forward will require careful navigation, strategic patience, and proactive engagement with the league office to ensure the best outcome for the team and its roster.