Sacramento Cutting Ties: Kings Waive DeMar DeRozan After Failed Trade Efforts

A staggering $22 million in potential single-season salary cap savings has officially pushed the Sacramento Kings to sever ties with six-time All-Star DeMar DeRozan. On Monday, the franchise waived the 36-year-old forward after failing to find a viable partner on the trade market willing to absorb his hefty contract. The sudden move thrusts the veteran mid-range specialist into unrestricted free agency right as the league's competitive landscape undergoes a major summer shakeup.

The Bottom Line

• The Sacramento Kings have officially waived veteran forward DeMar DeRozan, making him an unrestricted free agent.
• DeRozan was set to earn $25.74 million for the 2026-27 season, but only $10 million of that expiring contract was guaranteed.
• By potentially using the NBA's stretch provision on his $10 million guarantee over three years, Sacramento can generate more than $22 million in immediate cap savings.
• Sacramento stumbled to a 22-60 record in 2025-26, finishing 14th in the Western Conference and initiating a full roster rebuild.
• Contending teams like the Los Angeles Lakers, Miami Heat, Golden State Warriors, and Toronto Raptors are expected to pursue DeRozan on the open market.

Breaking It Down

The writing had been on the wall for weeks in Sacramento as the front office pivoted toward a severe financial and roster reset. The Kings originally acquired DeRozan from the Chicago Bulls in July 2024 as part of a three-team sign-and-trade, handing him a three-year, $74 million contract. The franchise harbored grand ambitions that pairing DeRozan's elite crunch-time scoring with Domantas Sabonis and De'Aaron Fox would elevate them into true championship contention. Instead, the experiment dissolved rapidly; Fox was traded, and the roster bottomed out entirely, culminating in a dismal 22-60 campaign in 2026.

Sacramento's financial hand was forced when veteran guard Zach LaVine opted into his massive $49 million player option for the upcoming season. That choice pushed the Kings roughly $13 million over the league's first luxury tax apron and directly against the highly restrictive second apron. Facing punitive tax penalties, Sacramento worked alongside DeRozan's representatives to explore the trade market. However, rival front offices balked at absorbing his near-$26 million cap hit, leaving a contract termination as the only viable escape route for the rebuilding franchise.

The mechanics of the transaction lean heavily on DeRozan's partial financial guarantees. Because only $10 million of his $25.74 million salary was fully locked in, cutting him immediately wipes the non-guaranteed portion from Sacramento's ledger. Front office executives have until August 29 to invoke the stretch provision. Doing so would distribute the remaining $3.33 million annual dead-cap hit across the next three seasons, instantly dragging the Kings safely below the luxury tax threshold and granting them much-needed breathing room to develop their younger core.

Why This Matters

For basketball fans across the United States, DeRozan's sudden availability changes the calculus of the ongoing championship arms race. Despite turning 37 next month, the veteran proved he remains an incredibly durable and effective weapon, averaging 18.4 points and 4.1 assists across 77 games last season. Because he is now hitting the open market as an unrestricted free agent, contending teams no longer need to match massive salaries to acquire him, allowing elite rosters to pursue him using cheaper veteran-minimum exceptions or smaller cap exceptions.

The rumor mill is already spinning rapidly with high-profile suitors. The Los Angeles Lakers are heavily linked to the wing, especially with LeBron James informing the team he will move on next season. In Southern California, DeRozan could slot in alongside Luka Doncic and Austin Reaves to give the Lakers an elite intermediate scoring punch. Meanwhile, the Miami Heat are looking for affordable veteran depth to round out a lethal core after pulling off a blockbuster trade for Giannis Antetokounmpo to play alongside Bam Adebayo.

A sentimental reunion with the Toronto Raptors is also generating serious traction in league circles. DeRozan spent his first nine NBA seasons in Toronto before being traded for Kawhi Leonard. With Leonard recently returning to Canada, bringing DeRozan back to finish his career would offer a potent bench weapon to an energized Eastern Conference contender.

What Comes Next

DeRozan is on track to officially clear waivers and reach unrestricted free agency on Wednesday afternoon. Negotiations with interested suitors are permitted to begin immediately once he hits the open market. On the executive side, Sacramento faces a August 29 deadline to formally decide whether they will use the stretch provision on his $10 million guarantee or take the full financial hit on this year's cap.

Frequently Asked Questions

Why did the Sacramento Kings waive DeMar DeRozan?

The Kings waived DeRozan to gain financial flexibility and advance their roster rebuild after a 22-60 season. By removing his non-guaranteed contract, and potentially stretching his $10 million guarantee, Sacramento can avoid luxury tax penalties brought on by Zach LaVine opting into a $49 million salary.

When does DeMar DeRozan become a free agent?

DeRozan is scheduled to clear waivers and become an unrestricted free agent on Wednesday, allowing him to sign a brand-new contract with any NBA franchise.

What were DeMar DeRozan's stats last season?

DeRozan appeared in 77 games during the 2025-26 season, averaging 18.4 points, 2.9 rebounds, and 4.1 assists while playing 31.2 minutes per game.

Which NBA teams are interested in signing DeMar DeRozan?

The Los Angeles Lakers, Miami Heat, Golden State Warriors, and Toronto Raptors have all been explicitly linked as top landing spots for the veteran scorer.