Kings' Updated Salary Cap Outlook After Waiving DeMar DeRozan

As the free agency moratorium ends and we get into the true offseason, the Kings have made what may be their biggest cost-cutting move of the summer. On Monday, Sacramento announced that they have waived swingman DeMar DeRozan.

How Did We Get Here?

DeRozan signed a three-year, $74M contract with the Kings in 2024 as part of a sign-and-trade with the Chicago Bulls and San Antonio Spurs. That sign-and-trade sent Harrison Barnes and a 2031 first-round pick swap to the Spurs, and Chris Duarte to the Bulls.

This trade was the first move that fundamentally changed the Beam Team. It is safe to say that nothing was the same after this moment. Barnes was a steady tertiary player who worked very well alongside Keegan Murray at the wing spots.

DeRozan, on the other hand, arrived in Sacramento coming off of 11 straight seasons averaging 20 or more points per game. Very different players, and the reputation-to-fit dichotomy played out how many thought it would. Sacramento won 46 games in 2023-24. In 2024-25, DeRozan’s first season in town, they won 40 games.

Kings officially announced that they have waived DeMar DeRozan: pic.twitter.com/Wq1XWjDkbz
— James Ham (@James_HamNBA) July 6, 2026

This season, one of (if not the) worst seasons in franchise history, saw the Kings win just 22 games. Some of the few highlights from this abysmal season were watching DeRozan climb the all-time scoring list. The USC product is now the 16th all-time leading scorer.

There have obviously been other factors involved, but the DeRozan-for-Barnes swap was a massive change to a team that seemed to have found a sustainable ecosystem. It was flawed and fragile, no doubt, but the team that was finally consistently winning 45+ games in a tough conference clearly tinkered their way out of what worked to chase a big name.

What Does This Mean for the Kings Moving Forward?

Now that this domino has fallen, the important variable is how Sacramento manages the $10M of dead money owed to DeRozan. They could simply let it sit as $10M of dead money this season and be free of any obligations moving forward. Here is what Sacramento’s cap sheet looks like after this move if they let the $10M stay this season:

Sacramento Kings salary cap sheet after waiving DeMar DeRozan | James McCauley

Alternatively, they could use the waive and stretch provision, which could spread the $10M out over three seasons at $3.33M per year through 2028-29.

For a tax-averse Kings team that is still right around the luxury tax threshold, every dollar matters. Stretching DeRozan over three seasons would get them under the tax. If he were to sign with another team, that would further offset what Sacramento owes him, saving them even more money. If DeRozan signed at the vet minimum elsewhere, the Kings would get to shave another $845K off of the dead money this year, potentially bringing it down to just over $3M.

When viewed through this lens, waiving DeRozan essentially leaves a minimum on the books for a couple of seasons. A very easy decision when the alternative is running a 22-win team back at or near the aprons.

Sacramento is clearly turning to its young core, which has shown flashes during the California Classic. They will head to the Las Vegas Summer League later this week. They start their time in the desert against the Los Angeles Clippers at 11 PM on Thursday.

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