Kings decided to refuse DeMar DeRozanESPN’s Shams Charania reports (Twitter link). Assuming the veteran forward is officially released from his contract in the coming hours, he will be on track to hit unrestricted free agency on Wednesday.
The outcome was expected for DeRozan, whose $25.74 million salary for the 2026-27 league season was only partially guaranteed at $10 million. Sacramento, working with DeRozan and his representatives, explored the trade market but did not find a suitable deal, Charania added.
If the Kings decide to use the installment plan to spread DeRozan’s partial $10 million guarantee over the next three seasons, that would represent more than $22 million in cap savings for the 26-27 season, which would take the team well off the apron and below the luxury tax line. According to ESPN’s Bobby Marks, Sacramento doesn’t have to decide right away whether to increase salary, and he notes (via Twitter) that a decision simply needs to be made before the end of August.
Keeping their full $10 million on the books for the 2026-27 season would leave the Kings slightly above the tax threshold, notes HoopsHype’s Yossi Gozlan (Twitter link), but it still makes sense to go that route if the club takes additional cost-cutting measures, as it would allow DeRozan to avoid paying the cap for the next two years.
If the Kings extend DeRozan’s partial guarantee, he won’t be able to re-sign with the team, although that’s unlikely to be considered anyway. The 17-year veteran is expected to look for an opportunity to play a role on a playoff team.
DeRozan will turn 37 in August, but he remains a productive and durable player and one of the league’s best scorers in crunch time. He played 77 games in 2025-26, averaging 18.4 points, 2.9 rebounds and 4.1 assists in 31.2 minutes per night. He spent the last two seasons with the Kings after being acquired from Chicago in a three-team trade in the summer of 2024.