Sources: Heat to waive embattled guard Rozier

The Miami Heat will waive guard Terry Rozier on Friday, sources told ESPN.

Rozier had been placed on leave by the NBA since October after federal indictments into sports gambling activity.

Miami will open up a roster spot to sign a player for the playoffs.

Rozier was arrested on Oct. 23 as part of a federal investigation into illegal gambling.

Rozier has pleaded not guilty to conspiracy charges of wire fraud and money laundering. His $26.6 million salary expires this summer, though the money has been placed in escrow while Rozier's case plays out.

Rozier was traded from Charlotte to Miami in January 2024, a deal that has come under scrutiny over whether the Heat should have been made aware of NBA and federal investigations into the alleged gambling conspiracy before the trade was completed.

The Hornets agreed to send a second-round pick in this June's NBA draft to Miami to resolve the dispute. Miami owes its 2027 first-round pick (lottery protected, which becomes an unprotected 2028 first if it doesn't convey) to Charlotte as part of the deal.

Commissioner Adam Silver called it an "unprecedented situation" in a news conference at the NBA Cup in Las Vegas in December.

ESPN's Tim Bontemps contributed to this report.