Heat acquires Terry Rozier from Charlotte for Lowry and first-round pick

The Heat, which has the NBA’s third-worst offense in January, added firepower Tuesday morning by acquiring high-scoring Charlotte Hornets combo guard Terry Rozier, according to a league source.

The Hornets received Kyle Lowry’s expiring contract (worth $29.6 million this season) and a 2027 first-round pick.

That 2027 Heat first-round pick due the Hornets is lottery protected; it would convey to Charlotte in 2028 if the Heat is in the lottery in 2027.

Rozier was eager to be dealt to a contender and was thrilled to be traded to Miami, according to a source. His favorite player growing up was Heat legend Dwyane Wade.

This marks the Heat’s first acquisition of a player since landing Lowry in a sign-and-trade 30 months ago.

The move has several consequences:

1). Rozier’s scoring (23.2 points per game, 35.8 percent three point shooting) will augment a team that has struggled to keep up offensively in recent weeks.

The 6-1 Rozier, 29, can play point guard and shooting guard and gives the Heat another adept ball-handler and skilled shooter.

2). The Heat’s luxury-tax bill for this season will drop from $29 million to $14 million, with Rozier’s $23.2 million salary replacing Lowry’s $29.6 million on its books. Though this wasn’t the incentive to make the trade, between tax and payroll, the Heat saved $22 million this season.

Miami dropped $6.3 million below the second apron.

That would allow the Heat to use its $5 million taxpayer midlevel exception this season (which is unlikely), but Miami still cannot sign any buyout players earning more than $12.4 million this season.

3). The Heat’s 2024-2025 payroll commitments, if Caleb Martin opts out of $6.8 million for next season as expected, now stands at $181 million, above the projected $172 million luxury tax line and about $9 million below the second apron, which the Heat does not want to exceed in future years.

4). The Heat will move on from Lowry, who was removed from the starting lineup against his wishes two games ago.

The Heat was initially reluctant to take on long-term money in a Lowry trade but changed their thinking in recent days, partly because Rozier’s remaining salary isn’t exorbitant, partly because of the team’s offensive struggles and partly because only one-first round pick (and Lowry’s contract) were needed to complete the trade.

Rozier’s contract will pay him $24.9 million in 2024-25 and $26.6 million in 2025-26. Of the $26.6 million for 2025-26, $24.9 million is guaranteed. The non-guaranteed money is so modest that it is inconsequential.

The Heat opted to do a deal for Rozier instead of a possible trade with Atlanta for Dejounte Murray. The Hawks wanted more assets than the Heat was willing to relinquish for Murray.

Besides his career high 23.2 points per game, Rozier is averaging a career high 6.6 assists and 3.9 rebounds. He’s shooting 45.9 percent from the field, well above his 42 percent career average.

In the past month, Rozier lit up Phoenix for 42 points, Sacramento for 34 and Chicago for 39.

Rozier spent the first four seasons of his career with Boston and past 4 1/2 with Charlotte. He has career averages of 14.1 points, 3.9 rebounds and 3.6 assists and has shot 36.7 percent on threes.

The Celtics selected him 16th overall out of Louisville in the 2015 NBA Draft.

The Heat opted to take on a player with multiple years left on his contract because the options to flip Lowry for an expiring contract were very limited.

Players with no guaranteed money due after this season who could have come into play in that scenario include Toronto guard Bruce Brown; Charlotte’s Gordon Hayward; a Joe Harris/Alec Burks package with Detroit; and Washington’s Tyus Jones and Delon Wright and another small piece.

While trades involving Lowry and the expiring contracts of DeMar DeRozan and (now injured) Chris Paul would work from a cap standpoint, there would be no incentive for the Bulls or Warriors to make such a trade.

So Rozier was the best available option and the Heat pounced on it.

Lowry - in the final season of a three-year, $85 million contract - is averaging 8.8 points and 4.0 assists in 28.0 minutes per game this season. Even if the Hornets buy him out -- which isn’t assured -- he would not be eligible to return to the Heat this season. And Miami was ready to move on from Lowry, anyhow.