The Charlotte Hornets have agreed to send a 2026 NBA Draft second-round pick to the Miami Heat to settle the dispute stemming from the case involving Terry Rozier, who is currently at the center of both a federal and league investigation over alleged involvement in a betting scheme.

According to ESPN, the pick sent will be the more favorable of the 2026 second-round selections owned by either the Golden State Warriors or the Denver Nuggets.

The issue originates from the 2024 trade that sent Rozier to Miami. The player later came under investigation by both the NBA and federal authorities, a situation that currently prevents him from taking the court.

Commissioner Adam Silver had already indicated in December that the league would evaluate a form of “satisfactory relief” for the Heat, considering the impact the situation has had on the team.

This is an unprecedented situation

Adam Silver

The issue has also carried significant salary cap implications. Rozier’s salary, worth roughly $26.6 million, takes up about 17% of the Heat’s cap space, while Miami still owes the Hornets a future first-round pick, scheduled for 2027 or 2028, as part of the original trade agreement.

Following the arrest and indictment in October, the NBA and the Miami Heat decided to place Rozier’s 2025-26 salary in escrow.

That decision was challenged by the NBPA, the players’ union, which filed an appeal. In February, an independent arbitrator ruled in favor of Rozier in the salary dispute with the NBA.