The Hornets are trading guard Terry Rozier to the Heat in exchange for Kyle Lowry and their 2027 first-round pick, sources tell Adrian Wojnarowski of ESPN. Shams Charania of The Athletic first reported that the two teams were closing in on a deal.
The 2027 first-rounder will be lottery-protected, according to Jake Fischer of Yahoo Sports. If it lands in the top 14 of the ’27 draft, the Heat will owe the Hornets their unprotected 2028 first-round pick, Fischer adds.
Rozier is in the midst of a career year. His 23.2 points and 6.6 assists per game are both career highs, as is his 45.9% field goal percentage through 30 games (35.5 MPG). While the 29-year-old has played a key role in Charlotte in recent years – starting all 298 games he has played for the team since 2019 – the 10-31 Hornets are far from contention, so it makes sense for the team to move on from him and recoup future assets.
Fischer reported last week that Rozier had a “known preference” to end up in Miami if he were to be traded this season. According to Barry Jackson of The Miami Herald, Rozier’s favorite player growing up was Heat star Dwyane Wade.
The Heat have had a solid first half despite dealing with injuries to several starters and rotation players — they currently sit in a tie for the sixth seed in the East, with a 24-19 record. Still, the club could use the sort of offensive punch that Rozier will provide. Miami’s 113.4 offensive rating ranks just 20th in the NBA and 10th among Eastern teams.
Rozier is earning approximately $23.2M this season, while Lowry is on a $29.7M expiring contract, so the deal will save the Heat a substantial chunk of money in the short term. In addition to trimming its 2023-24 team salary, Miami will reduce its projected luxury tax bill and move below the second tax apron, as cap experts Yossi Gozlan and Bobby Marks observe.
The move will add some money to the Heat’s books in future seasons, however. Rozier is owed $24.9M in 2024-25, and his $26.6M cap hit for 2025-26 features a significant partial guarantee ($24.9M).
The Hornets, meanwhile, will create some cap flexibility for future seasons by moving Rozier’s multiyear deal for Lowry’s expiring contract. As Gozlan points out, the team could generate approximately $45M in cap room this summer.
However, the team likely isn’t done dealing. Miles Bridges, P.J. Washington and Gordon Hayward are among the other veteran candidates on Charlotte’s roster. Additionally, the front office is expected to see if it can flip Lowry in another trade before the Feb. 8 deadline, sources tell Wojnarowski.
Lowry won’t have positive trade value on his own, but his expiring money may appeal to a team looking to move off a player on a multiyear deal. The Hornets could potentially extract an asset or two if they’re willing to take back an unwanted contract.
If no trade emerges for Lowry, he’d be a buyout candidate after the trade deadline. Because his salary is above the mid-level exception, the 37-year-old wouldn’t be permitted to sign with a team whose salary is above either tax apron. He’d also be ineligible to return to Miami.
It’s worth noting that the Heat owe a lottery-protected 2025 first-round pick to Oklahoma City and can’t leave themselves without first-rounders in consecutive drafts, due to the Stepien rule. So if that ’25 pick lands in the lottery, Miami would owe the Thunder an unprotected 2026 first-round selection and would send Charlotte its unprotected 2028 first-rounder.
The Heat will create a $6,477,319 trade exception in the swap — that’s the difference between Lowry’s outgoing salary and Rozier’s incoming cap charge.
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