Micah Peavy Could Be Odd Man Out in Grizzlies Roster Crunch

The Memphis Grizzlies acquired Micah Peavy from the New Orleans Pelicans on Sept. 8. His contract sets a decision point before he plays a regular-season game in Memphis.

Peavy is owed $2.2 million this season, fully guaranteed. His 2027-28 salary of $2.5 million becomes guaranteed if he is not waived before the first regular-season game. Memphis holds a team option on the fourth year, 2028-29. Washington picked Peavy 40th overall in 2025 and moved his rights to New Orleans in the three-team CJ McCollum and Jordan Poole trade. The Pelicans signed him to the four-year, $8.7 million deal that July.

Memphis sent AJ Johnson and Taj Gibson to New Orleans. Along with Peavy, the Grizzlies received Jordan Hawkins, the Toronto Raptors' 2031 second-round pick, and the right to swap 2032 second-round picks. New Orleans waived Gibson, who has since ended his playing career and joined the Chicago Bulls as an assistant coach.

The two-for-two swap left Memphis with 19 players on standard contracts, 18 of them fully guaranteed. The roster has to be at 15 by opening night.

Adams listed 11 players he considered locks. That left eight players for four spots: Taylor Hendricks, GG Jackson II, Olivier-Maxence Prosper, Walter Clayton Jr., D'Angelo Russell, Hawkins, Peavy, and Kris Murray. Adams wrote that he could not see Russell on the opening night roster and that Murray was probably a long shot. He had the final spot coming down to Clayton, Hawkins, or Peavy.

Jake Fischer named Russell, Murray, Clayton, and Peavy as the players most at risk on his Sept. 8 Bleacher Report stream. On the same stream, he said Hawkins would likely get a chance to stick and that Prosper should be safe. Two days later, in a notebook for The Stein Line, Fischer reported that Clayton is now expected to survive the cuts. Russell is still viewed as the veteran most likely to be released. Hawkins, Murray, and Peavy were placed at varying levels of risk.

The Pelicans took Hawkins out of UConn with the 14th pick in 2023, and his $7.0 million salary this season is the last guaranteed money on that rookie contract. He can become a restricted free agent in 2027. Murray's rookie contract pays him $5.3 million in its last season. Of the three, only Peavy has salary scheduled beyond 2026-27. His current salary is also the smallest of the three.

Peavy appeared in 61 games for New Orleans last season and started 4 of them. He averaged 4.3 points, 1.9 rebounds, and 1.0 assists in 15.0 minutes. From three-point range, he went 28-of-108 (25.9%), and he shot 38.5% overall.

With Zion Williamson, Herb Jones, and Saddiq Bey held out on April 7, Peavy drew a start against the Utah Jazz. He had 20 points on 9-of-13 shooting, and New Orleans won 156-137. Three nights later in Boston, he had 2 points on 1-of-7 shooting in 37 minutes. He closed the season April 12 at Minnesota with a career-high 21 points on 6-of-12 shooting. He went 7-of-8 at the line and fouled out of a 132-126 loss to the Timberwolves.

Now 25, Peavy came out of Duncanville High School ranked 37th in the 2020 recruiting class. He spent a season at Texas Tech and three at TCU before transferring to Georgetown, where he made the All-Big East first team in 2024-25. Over 32 games, the Hoyas got 17.2 points, 5.8 rebounds, 3.6 assists, and 2.3 steals a night from him.

Memphis brings back Cedric Coward, Jaylen Wells, and Cam Spencer from last season's guards and wings. Jerami Grant joined them June 29, arriving from the Portland Trail Blazers with Murray in the Ja Morant trade. Wells has a minimum-salary team option for 2027-28, and Adams views him as the top extension candidate on the roster.

Peavy cannot be aggregated with other salaries in a trade until Nov. 8. He also cannot be traded back to New Orleans until Sept. 8, 2027. Adams wrote that he doubted Memphis could get positive value for most of its bubble players, and that those players would draw more interest on minimum-salary or two-way contracts.

The Grizzlies open the preseason on Oct. 5 in Atlanta. The regular season opens Oct. 21 against Utah at FedExForum.