The Memphis Grizzlies on Monday waived former first-round pick Walter Clayton Jr. and 2025 second-round selection Micah Peavy, finalizing their roster ahead of the 2026-27 NBA regular season. The decisions came as teams faced the 5 p.m. ET deadline to complete their roster cuts.

Clayton, selected 18th overall in the 2025 NBA Draft by the Utah Jazz, had reportedly attracted trade interest from multiple teams before Memphis decided to release him. The Sacramento Kings were among the potential suitors, according to Marc Stein and Jake Fischer of The Stein Line. Brett Siegel of ClutchPoints also reported that the Miami Heat had shown interest in the guard.

Memphis acquired Clayton from the Jazz in February as part of the eight-player deal that sent Jaren Jackson Jr., Jock Landale, John Konchar and Vince Williams Jr. to Utah. Across 69 appearances with the Jazz and Grizzlies during his rookie season, Clayton averaged 7.8 points, 4.0 assists and 2.0 rebounds in 20.4 minutes per game, shooting 38.4% from the field, 30.7% from three-point range and 90.1% from the free-throw line.

In 24 games with Memphis, he recorded 9.7 points and 5.7 assists per contest while connecting on 36.6% of his three-point attempts. However, he was unable to distinguish himself in a crowded point guard rotation during the preseason.

Sacramento could remain a possible destination if Clayton clears waivers, as the Kings opened a two-way roster spot by releasing guard Adam Flagler.

The Grizzlies' decision also carries financial implications, with the team expected to absorb approximately $6.4 million in dead money. Clayton is owed around $4.2 million for the upcoming season, while Peavy is due approximately $2.2 million. Neither player has guaranteed money beyond the 2026-27 campaign.

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Peavy, the 40th overall selection in the 2025 draft, joined Memphis through a September trade with the New Orleans Pelicans. The 6-foot-7 wing averaged 4.3 points and 1.9 rebounds in 62 games as a rookie, but an ankle injury prevented him from participating in training camp and all four preseason contests.

Following the cuts, the Grizzlies have 15 players on standard contracts and three on two-way deals: Jahmai Mashack, Javon Small and Carson Cooper. Richie Saunders, the 32nd overall pick, remains unsigned while recovering from an ACL injury suffered in February at BYU. Meanwhile, fourth-year forward Kris Murray made the cut.

Memphis is scheduled to begin its season Wednesday against the Utah Jazz.