Grizzlies waive Walter Clayton Jr. and Micah Peavy after trade talks

The Grizzlies are waiving Walter Clayton Jr. and Micah Peavy, according to Shams Charania. Memphis faced a roster crunch with 16 players on guaranteed contracts plus Jaylen Wells on a partially guaranteed deal, and the two cuts set the roster for the regular season.

Releasing Clayton, who is owed about $4.2 million this season, and Peavy, owed roughly $2.2 million, leaves the Grizzlies carrying approximately $6.4 million in dead money. Neither player is owed guaranteed money beyond 2026-27.

Memphis had explored trading Clayton, with the Kings cited as a possible interested team, according to Marc Stein and Jake Fischer. Clayton could still land in Sacramento if he clears waivers – the Kings opened a two-way spot on Monday by releasing Adam Flagler. Miami is another team with rumored interest, according to Brett Siegel. Clayton, the 18th overall pick in the 2025 draft after leading Florida to a national title, was acquired from the Jazz in February as part of the Jaren Jackson Jr. trade.