Terry Rozier Will Still Collect His $26.6 Million Salary Despite Federal Gambling Investigation — And He Reportedly Owes The IRS $8.2 Million

Miami Heat guard Terry Rozier is feeling the heat from a federal investigation that alleges he participated in an illegal insider sports betting scheme. The investigation dates back to a game on March 23, 2023, where Rozier allegedly told a friend to bet the "under" on several of his individual stats. Rozier removed himself from the floor after playing less than 10 minutes, allowing the under bets to hit.

As the Federal Bureau of Investigation announced Rozier's arrest, the league placed the veteran guard on administrative leave. While the investigation is ongoing, Rozier won't be eligible to play.

However, as RealGM and Legion Hoops pointed out, Rozier will still make his full $26.6 million salary from the Heat this year. Under NBA rules, players receive their full pay and benefits if they're placed under administrative league. Only a league ruling can impact the money a player gets.

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Operation Nothing But Net

The FBI dubbed the case "Operation Nothing But Net" and announced the arrests of Rozier and 33 other defendants tied to two separate sports gambling investigations. According to court filings, Rozier and his longtime friend Deniro Laster conspired to profit from insider information about his playing time. Investigators allege Rozier told Laster he planned to leave the game early, and Laster then sold that tip to bettors for roughly $100,000. The resulting bets reportedly paid out around $200,000—less than Rozier earns for a single game.

The league conducted its own investigation on Rozier's actions but ultimately brought forth no penalties, claiming there was insufficient evidence.

Rozier signed a contract with the Heat in 2024 worth nearly $96.3 million over four seasons. He had seen his scoring stats and shooting percentages dip last year, and didn't appear in a game for the Heat this season. He was on the bench the night before his arrest, however.

The insider betting allegations are not Rozier's only recent legal or financial challenge.

Tax Troubles

As first reported by ESPN, in November 2023, the Internal Revenue Service filed a federal income tax lien of $8.2 million against Rozier for unpaid taxes. The lien, recorded in Broward County, secures the government's claim against his assets and properties. A year earlier, he faced a separate $271,000 construction lien on his Florida property, which records show was mostly paid within a year.

Over his career and counting this year, Rozier has made $161.7 million in salary. He's also an officer in the company GMB Chronicles, which holds the trademark to his nickname, "Scary Terry."

Now, Scary Terry finds himself in a scary situation. A once-promising NBA star and multimillionaire, Rozier's future now depends on how the federal case unfolds—and whether the league believes he can ever be trusted on the court again.