The Grizzlies are waiving Walter Clayton Jr. and Micah Peavy, according to ESPN’s Shams Charania, bringing their standard roster to the 15-player limit.
The decision follows efforts to trade Clayton before Monday’s roster deadline. Marc Stein and Jake Fischer of The Stein Line reported earlier in the day that the Kings had emerged as a possible suitor, with Sacramento looking for backcourt help following Ben Simmons’ torn Achilles tendon.
Memphis instead will release both players and carry approximately $6.4 million in guaranteed salary on its books, assuming neither is claimed. Clayton is owed about $4.2 million this season, while Peavy will earn roughly $2.2 million. Neither has guaranteed money beyond 2026-27.
The Grizzlies entered the day with 16 players on fully guaranteed standard contracts and Jaylen Wells on a partially guaranteed deal.
Clayton’s departure comes just eight months after Memphis acquired him from the Jazz in the Jaren Jackson Jr. trade. General manager Zach Kleiman praised Clayton at the time as a player the organization could envision in its young core.
The No. 18 overall pick in the 2025 draft, Clayton averaged 7.8 points, 4.0 assists and 2.0 rebounds in 69 games between Utah and Memphis as a rookie. He shot 38.4 percent from the field and 30.7 percent from three.
Clayton helped Florida win the 2025 national championship and was named the NCAA Tournament’s Most Outstanding Player. Now he and Peavy will head to waivers, where another team can claim their contracts.
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