Rebuilding the Grizzlies - 2026 Offseason Preview

On the Grizzlies' upcoming offseason, key player decisions and potential trade candidates, and how they could exhaust their vast amount of spending power to maximize their rebuild.

Four years ago, the Grizzlies seemed like they were on the brink of greatness. They had a deep roster that consistently made them a top seed in the West and the promising star power to lead them on a deep playoff run. They were way ahead of schedule with most of their top players on rookie contracts, and the sky felt like the limit after they advanced to the second round and took the eventual champion Warriors to six games.

Fast forward, and the Grizzlies are now in the early stages of a rebuild. Ja Morant and Santi Aldama are the only remaining players from the previous core, and they seem like they could be on the way out as well. They have a strong collection of talented young players who could become high-level starters and role players. They now have an opportunity to land a new franchise player with the third-overall pick in this year’s draft, and will have plenty more opportunities to do so with their massive surplus of first-round picks in future seasons.

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Salary cap situation

The Grizzlies are entering the offseason with 17 players on standard contracts and two two-way players, including their two first-round picks. They will need to get down to 15 players before the regular season starts, so they’ve got time to make roster decisions. However, they can only carry a maximum of 21 players during the offseason. This could force earlier decisions if they make trades where they take back more players than they send out.

They have $163.5 million in total salaries between their active payroll and dead money. This leaves them just under the $165 million salary cap, but they won’t be a cap space team. They’ll have more spending power as an over-the-cap team and should be able to exhaust most of their flexibility without exceeding the $200.5 million luxury tax line. They should remain below that threshold as a rebuilding team.

Teams above the cap and below the $209.1 million first apron can take in more salary in a trade than they send out. They can also acquire free agents via sign-and-trade and have access to the $15 million non-taxpayer mid-level exception and $5.5 million bi-annual exception. They could also use trade exceptions created in the previous season, including a massive $28.9 million trade exception. They created it by trading Jaren Jackson Jr. and could take back up to $29.1 million in salary with it.

As an example, the Grizzlies could use the entirety of their trade exception and the $15 million mid-level exception as a trade exception and remain below the tax line. They would then be able to make additional trades that significantly increase their payroll afterward due to their fluid payroll situation. They will presumably create more tax room when they address their roster crunch, such as by waiving a non-guaranteed player or trading a veteran.

For example, they could waive Taj Gibson and clear $3.8 million in tax room. They could then re-sign him to a one-year veteran minimum contract that would count as $2.5 million against the cap, assuming they have a roster spot available for him. They could also potentially buy out Kentavious Caldwell-Pope. His $21.6 million salary is unpalatable for contending teams. A buyout could save the Grizzlies an additional $3.8 million, which is his respective minimum salary for the upcoming season.

Last month, Brandon Clarke tragically passed away at just 29 years old. He was beloved by his current and former Grizzlies teammates, the organization, and the Memphis community. We extend our deepest condolences to his family and loved ones.

At some point, the Grizzlies will waive Clarke for procedural purposes and to officially open a roster spot. With that in mind, we’ll operate under the assumption that his $12.5 million salary will no longer be on the team’s books for next season.