Grizzlies Waiving Walter Clayton Jr., Micah Peavy

Memphis was facing a roster crunch this fall, with 16 players on guaranteed contracts and Jaylen Wells on a partially guaranteed deal. The Grizzlies’ roster will be ready for the regular season after cutting both Clayton and Peavy.

The Grizzlies will carry approximately $6.4MM in dead money on their books by releasing the Clayton, who is owed about $4.2MM this season, and Peavy who will make roughly $2.2MM. Neither player is owed guaranteed money beyond 2026/27.

Marc Stein and Jake Fischer of The Stein Line reported on Monday afternoon that the Grizzlies were looking to trade Clayton, citing the Kings as a team that might have interest. Memphis acquired the former Florida star from the Jazz in February as part of the Jaren Jackson Jr. trade.

It’s possible that Clayton could end up in Sacramento if he clears waivers. The Kings opened a two-way spot on Monday by releasing guard Adam Flagler.

Brett Siegel of ClutchPoints says Miami is another team rumored to have some interest in Clayton (Twitter link). Fischer previously reported that the Heat and Warriors were intrigued by Clayton heading into last year’s draft, when he was selected 18th overall after leading the Gators to a national title.

In 69 combined appearances last season as a rookie with Utah and Memphis, Clayton averaged 7.8 points, 4.0 assists and 2.0 rebounds in 20.4 minutes per game, with a shooting line of .384/.307/.901.

Assuming he clears waivers, Clayton’s third-year option for 2027/28 will be declined as part of the transaction.

Peavy, meanwhile, was also selected in last year’s draft, having come off the board 40th overall. He spent his rookie season with the Pelicans, who traded him to the Grizzlies in September.

A 6’7″ wing who finished out his college career at Georgetown, Peavy averaged 4.3 PPG and 1.9 RPG on .385/.259/.759 shooting in 62 games last season. He was sidelined during training camp and the preseason because of an ankle injury.

Fourth-year forward Kris Murray was another Grizzlies newcomer who was considered a candidate to be waived, but he ended up making the regular season roster.