By admin 
Sacramento Kings general manager Scott Perry made it clear that he planned to get the team’s payroll under control ahead of the 2026-27 season.
Read more CA Senate issues its own utility wildfire proposal, sets up late negotiations
With just over a month remaining before the start of training camp, Perry has reportedly made another shrewd salary cap move to avoid the NBA luxury tax.
League sources told HoopsHype’s Michael Scotto the Kings have chosen to use the stretch provision on the $10 million owed to DeMar DeRozan for the upcoming season. The team had to make that decision ahead of the Aug. 31 deadline.
The Kings waived DeRozan on July 6, clearing the way for him to sign with the Denver Nuggets as an unrestricted free agent. DeRozan was due to earn $25.7 million in the final year of his contract with the Kings, but only $10 million was guaranteed., so Sacramento saved $15.7 million for the upcoming season.
The decision to use the stretch provision will allow the Kings to spread the cap hit over three years at $3.3 million per season, reducing the team’s 2026-27 payroll by an additional $6.7 million. Sacramento is now projected to drop below the $200 million luxury tax line with enough room to fill its last two roster spots with minimum contract players.
Read more Solano County supervisors push back on California Forever shipyard proposal
Perry vowed to cut spending below the luxury tax threshold when he addressed the media after the Kings finished 22-60 last season. At that point, Sacramento was projected to be $20 million over the luxury tax and $3 million over the second salary apron.
Perry cut payroll by $5.1 million on June 29 when he traded former lottery pick Devin Carter and a 2033 second-round draft pick to the Atlanta Hawks in exchange for the rights to Alpha Kaba. The Kings explored a number of trade possibilities before deciding to waive 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.”
Read more Get ready to celebrate spooky season in Sacramento with Movies Under the Stars
This story was originally published August 25, 2026 at 5:06 PM.