Kings Just Sent A Clear Message About DeMar DeRozans Future

In a strategic move to remain financially flexible, the Sacramento Kings have opted to stretch DeMar DeRozan's contract, effectively sidestepping luxury tax constraints while planning for future competitiveness.

Sacramento’s push to get its books in order took another big step with DeMar DeRozan.

The Kings have decided to use the stretch provision on the $10 million owed to DeRozan for the upcoming season, according to league sources who spoke to HoopsHype’s Michael Scotto. Sacramento had to make the call before the Aug. 31 deadline, and it gives the team a cleaner path under the NBA’s luxury tax line.

DeRozan was waived on July 6, opening the door for him to join the Denver Nuggets as an unrestricted free agent. His contract originally called for $25.7 million in the final year, but only $10 million was guaranteed. By moving on from him, the Kings already saved $15.7 million for this season.

Now they’re taking the cap hit and spreading it out over three years at $3.3 million per season. That trims Sacramento’s 2026-27 payroll by another $6.7 million and leaves the team projected to fall below the $200 million luxury tax line. It also gives the Kings enough space to fill their final two roster spots with minimum contracts.

This fits the direction Scott Perry laid out after Sacramento’s 22-60 season. He made it clear then that the payroll needed to come down, and at the time the Kings were projected to be $20 million over the luxury tax and $3 million above the second salary apron.

Perry has already made one notable move to get there. On June 29, Sacramento cut $5.1 million from the ledger by trading former lottery pick Devin Carter and a 2033 second-round draft pick to the Atlanta Hawks for the rights to Alpha Kaba. The front office also looked into multiple trade options before settling on waiving DeRozan.

“There are a lot of mechanisms to work around the cap,” Perry said in April. “I will just say this: From the time I started in this league 23 years ago, my philosophy is never to be a team going into the luxury tax unless we were a roster worthy of that, ready to compete for a championship. We’re not there yet, so we have a number of avenues over the next three, four, five months to make sure we’re in compliance with that and also put the very best roster we can out there for next season.”

In Other News...

Why Alex Karaban Could Help The Kings Right Away

Alex Karaban arrived in Sacramento with the kind of rsum front offices like to point to when they talk about fit, not flash. The 6-foot-8 forward won two national championships at UConn, picked up All-Big East honors in 2025 and 2026, and brought the sort of versatility the Kings clearly prioritized when they moved up in a trade with the Cleveland Cavaliers to grab him in the first round of the 2026 NBA draft.

For a team looking to shore up the edges around its established core, Karaban checks several useful boxes right away. His perimeter shooting, defensive reliability and leadership give him a chance to carve out minutes as a trusted role player, even if he is not expected to open the season in the starting five. The larger question now is how quickly Sacramento can turn that blend of polish and winning habits into production at the NBA level. [Read more 🡒]

Kings Face A Costly Center Question They May Need To Drop

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That cap reality has made the idea of prying Duren away feel more like a concept than a practical route. Sacramento explored the possibility enough to show interest, but it did not move into a sign-and-trade framework involving Domantas Sabonis, and with the roster math the way it is, the Kings seem far more likely to keep looking at the center spot from a distance than to make a costly swing for one of the markets most expensive names. [Read more 🡒]

Kings Still Have One Big Backcourt Decision To Make

The Kings are still looking to add some veteran help at point guard, and the idea makes sense for a roster that could use a steady hand behind the scenes. With salary cap space available, Sacramento has been surveying the free agent market for reserve options and has already been connected to names like Ben Simmons, Victor Oladipo and Gabe Vincent, among others. The goal is not just depth, but a reliable guide for lottery pick Darius Acuff Jr. as he begins his NBA path.

What makes the search interesting is that the answer does not have to be flashy to matter. Sacramento is weighing a backcourt fit that can absorb minutes, organize the offense and serve as a mentor without blocking Acuffs long-term development, which gives the front office a pretty specific lane to work in. The Kings have options, but the decision still looks like one of the more important roster moves left to sort out before camp gets rolling. [Read more 🡒]