Thunder hand Micah Peavy a two-way spot and waive Otega Oweh, out for the season with a torn Achilles

The Oklahoma City Thunder added wing Micah Peavy on a two-way deal after releasing rookie Otega Oweh, whose ruptured Achilles tendon will keep him out for the entire 2026-27 season.

The swap, made official by the team on Saturday, October 24, gives Oklahoma City a healthy body in a two-way slot that would otherwise have sat idle all year. ESPN first reported the agreement with Peavy on Friday, October 23, and Thunder on SI added that the deal covers one season.

Who Micah Peavy is

Peavy, 25, is a 6-foot-7 wing who went 40th overall in the 2025 draft after college stops at Texas Tech, TCU and Georgetown. In his final year with the Hoyas he played alongside Thomas Sorber, now his teammate again in Oklahoma City, and he had worked out for the Thunder before that draft.

He spent his rookie year in New Orleans, appearing in 61 games and playing about 15 minutes a night. His line was modest: 4.3 points, 1.9 rebounds and 1.0 assist, with 38.5 percent shooting from the field and 28-of-108 from beyond the arc. His value is at the other end of the floor, where Thunder on SI noted that Synergy tracking put him in the 70th percentile when guarding the ball handler in pick-and-roll.

His last two months have been unsettled. The Pelicans sent him to the Memphis Grizzlies on September 8 in a four-player trade built around Jordan Hawkins, with AJ Johnson and Taj Gibson heading back to New Orleans to open cap room. Memphis let him go during the preseason, and he cleared waivers before choosing Oklahoma City over other interest.

What it means for the roster and the cap

Oweh, the Kentucky guard Oklahoma City took 41st overall in June, signed his two-way deal on July 3 and then tore his right Achilles in the club’s fourth preseason game. Keeping him would have left one of the three two-way slots occupied by a player who cannot appear this season, so the front office moved on rather than play short at a time when Sorber, still recovering from knee surgery, and Nikola Topic are also sidelined.

Peavy now joins rookie Josh Dix and second-year forward Brooks Barnhizer as the club’s three two-way players, which fills every available slot. Two-way contracts do not count against the salary cap, so the move leaves the Thunder’s standard 15-man payroll and its position against the tax aprons unchanged. Peavy can be active for up to 50 regular-season games and will otherwise play for the Oklahoma City Blue in the G League.

Thunder on SI raised the possibility that Oweh could stay connected to the organization through a G League arrangement with the Blue while he rehabilitates, though neither side has announced anything.

What comes next

The Thunder host the LA Clippers at Paycom Center on Sunday, October 25, at 7 p.m. ET, the first game for which Peavy is eligible. Follow it in the Clippers-Thunder Game Center, and track every roster move on the transactions page.