Kofi Inkoom
The Hornets have agreed to trade guard Terry Rozier to the Heat in exchange for Kyle Lowry and Miami’s 2027 first-round pick, as reported by ESPN’s Adrian Wojnarowski.
The 2027 first-round pick is lottery protected, meaning if it falls within the top 14 picks, the Heat will keep it, and the Hornets will receive the Heat’s unprotected 2028 first-round pick instead, according to information from Jake Fischer of Yahoo Sports.
Rozier is currently having a standout season, achieving career highs with 23.2 points and 6.6 assists per game through 30 appearances.
Despite his significant contributions to the Hornets, who currently stand at 10-31, the team seems to be prioritizing future assets over keeping him.
Rozier had expressed a preference to end up in Miami if traded this season, a wish that now becomes reality.
The Heat, despite facing injuries to key players, are in a solid position in the Eastern Conference, tied for the sixth seed with a 24-19 record.
Rozier’s offensive capabilities are expected to bolster the Heat’s performance, given their ranking of 20th in the NBA in offensive rating.
Financially, the deal benefits the Heat in the short term, as Rozier’s salary is approximately $23.2 million this season, compared to Lowry’s $29.7 million expiring contract.
This trade allows the Heat to trim their team salary for the 2023/24 season, reduce their projected luxury tax bill, and move below the second tax apron.
However, while the trade brings immediate financial relief, it also adds money to the Heat’s future salary commitments. Lowry’s contract is set to expire after this season, but Rozier is owed $24.9 million in 2024/25, with a significant partial guarantee on his $26.6 million cap hit for the 2025/26 season.
On the Hornets’ side, this trade creates cap flexibility for future seasons by exchanging Rozier’s multiyear deal for Lowry’s expiring contract, potentially allowing them to generate around $45 million in cap room in the upcoming summer.
Despite this transaction, the Hornets may not be done making moves. Reports suggest they remain in asset accumulation mode, considering deals involving other veterans on their roster, such as Miles Bridges, P.J. Washington, and Gordon Hayward.
Additionally, there is speculation about the possibility of flipping Lowry in another trade before the February 8 deadline.
If no suitable trade emerges for Lowry, he could become a buyout candidate after the trade deadline.
However, due to his salary being above the mid-level exception, the 37-year-old wouldn’t be able to sign with a team exceeding either the tax apron or the mid-level exception. Moreover, he would be ineligible to return to Miami.
A noteworthy aspect of the trade is the Stepien rule, which prohibits a team from being without first-round picks in consecutive drafts.
The Heat owe a lottery-protected 2025 first-round pick to Oklahoma City, and if it lands in the lottery, they would owe the Thunder an unprotected 2026 first-round selection and send the Hornets their unprotected 2028 first-rounder.
In terms of the salary cap, the Heat will create a $6,477,319 trade exception as a result of the deal. This figure represents the difference between Lowry’s outgoing salary and Rozier’s incoming cap charge.