It has felt like a foregone conclusion since before free agency even kicked off that Dennis Schroder would be joining the Sacramento Kings. Jake Fischer first linked Schroder to the Kings before the draft and originally reported that the Kings would likely be using the full Non-Taxpayer Mid-Level Exception around $14.1M, however, it seems like that isn’t confirmed just yet.
With the signing not technically final until the end of the moratorium, the Kings and Detroit Pistons still have time to change the structure of the deal.
Schroder will be joining the Kings by way of sign-and-trade, sources told @ClutchPoints. The Kings will be absorbing Schroder's incoming $14 million salary using their Kevin Huerter $16.8M TPE.
— Brett Siegel (@BrettSiegelNBA) July 3, 2025
Kings will maintain flexibility and their full $14.1M MLE. https://t.co/K30bPna0e2
As the Schroder deal came to fruition on Monday, rumors started to swirl that Malik Monk would be included in a sign and trade for Schroder, much to the chagrin of fans. While that doesn’t feel like great value for Sacramento, there are reasons for using the traded player exception from the Huerter trade instead of signing Schroder to the MLE.
First, it allows Sacramento to keep full use of their Mid-Level Exception which is a lot more flexible than the TPE because it can be used to absorb salary in both a trade and for signing a free agent for teams over the cap.
Second, Monk makes almost $4 Million more than Schroder will on his new contract, so Sacramento will be able to give them a bit more breathing room from the luxury tax.
Finally, Sacramento and Detroit can also turn this into a multiple-team trade that allows Sacramento (and/or Detroit) to take back another player right away, say Jonathan Kuminga, if things work out that way. Sacramento could also save the space for a future move should they wish.
The Sacramento Kings have remained open still to a sign-and-trade of Malik Monk to Detroit. They still have a few days to complete that.
— Matt George (@MattGeorgeSAC) July 3, 2025
Meanwhile, the Kings are very engaged on the Jonathan Kuminga front in a deal which, I'm told, likely wouldn't involve Monk. @ABC10
Taking on Schroder via sign and trade will hard cap the Kings at the first apron, much like last season with the DeMar DeRozan sign and trade. The caveat to the first apron for Sacramento is that they likely aren’t worried about it, but they are going to be concerned about the tax line.
If Monk is moved and Schroder is brought in, Sacramento will have around $25 Million of buffer before they hit the luxury tax line vs. closer to $5 million if they keep both players. Sacramento hasn’t paid the luxury tax in 20+ years, so it is possible that all of this is just to maintain a little flexibility, but I’m not sure that they don’t have more planned.
With the Kings under the tax line and already at 14 rostered players after signing Maxime Raynaud to a 3 year deal, the team doesn’t have much of a reason (other than saving money) to move Monk right now unless it means they have another deal planned.
Whether another deal materializes or not will be the deciding factor in how this deal is judged. Monk alone for Schroder feels like bad value even for a team that desperately needs a point guard. Monk is also a fan favorite and might even be a little underrated because of the roster situation in Sacramento, but moving him makes sense if you’re able to bring in a piece that fits better.
Monk is also one of five shooting guards on the roster (if you count Nique Clifford) and having him on the roster will eat into the development of Keon Ellis and Clifford. Overall, it’s not great that Monk may end up being a casualty of the LaVine trade that hasn’t panned out yet, but at least the front office seems to be trying to right the ship however they can.
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