Pelicans, Grizzlies Agree To Four-Player Trade

Key Points:

• The New Orleans Pelicans have agreed to trade Jordan Hawkins, Micah Peavy, a future second-round pick, and a second-round swap to the Memphis Grizzlies in exchange for AJ Johnson and Taj Gibson, primarily as a cost-cutting move to accommodate Bennedict Mathurin's contract without exceeding the luxury tax or first apron limits.
• Memphis plans to partially guarantee Gibson's non-guaranteed salary to meet salary-matching requirements, while Peavy's salary will likely be absorbed using the Grizzlies' trade exception from the Ja Morant deal; however, neither Johnson nor Gibson is expected to make Memphis' regular season roster.
• Hawkins, the 14th overall pick in 2023, showed promise as a rookie but regressed last season, while Peavy, a 2025 second-round pick, demonstrated defensive potential despite modest offensive stats.
• The Pelicans anticipate waiving Gibson and potentially Johnson after training camp, freeing up nearly $5.8 million in cap space to sign Mathurin and maintain flexibility below the luxury tax threshold with a 14-player roster on standard contracts.
• This trade will generate a roughly $7 million trade exception for New Orleans, enhancing their roster-building flexibility moving forward.