Rockets, Grizzlies trade injured veterans

The Grizzlies are trading center Steven Adams to the Rockets in exchange for Victor Oladipo and three second-round picks, according to ESPN’s Adrian Wojnarowski. Adams is out for the season with a knee injury, while Oladipo is also battling a long-term left patellar tendon injury.

According to Wojnarowski, the Grizzlies are acquiring two 2024 second-round picks and a 2025 second-round pick in the trade. The Athletic’s Kelly Iko reports there are no protections on any of the second-round picks owed to Memphis.

The move is a primarily financial one from Memphis’s side, according to Wojnarowski. The Grizzlies were and are facing tough contract decisions with an expensive roster set for 2024-25. Ja Morant, Desmond Bane, Jaren Jackson Jr. and Marcus Smart are among players set to make $20M or more next season and, before acquiring Oladipo, their only free-agent-to-be next season was Xavier Tillman. Adams is set to make $12.6M next season while Oladipo is an upcoming free agent.

Memphis could be acquiring Oladipo utilizing the $12.4M Morant Disabled Player Exception, which would create a $12.6M trade exception (equivalent to Adams’ salary). As explained by our glossary, that trade exception will be good to use for one year. However, ESPN’s Bobby Marks suggests the Grizzlies could instead create a $3M trade exception instead of using Morant’s DPE.

Not including a likely lottery pick, the Grizzlies had $186M in salary for next season with the projected second apron standing at $190M, according to Marks. Moving Adams gives some breathing room to the club, who may also look to shed additional salary ahead of next week’s deadline. While Tillman was the Grizzlies’ only projected standard free agent, they also could look to move Luke Kennard, who possesses a $14.7M team option for next season. While they could simply decline the option, it may make sense to try and extract value for the career 43.7% three-point shooter or. Alternatively, they could exercise Kennard’s team option and since they’re just about $2M over the tax line, could make smaller moves to dodge it, according to Spotrac’s Keith Smith.

The Grizzlies could also buy out Oladipo if they hold him through the deadline. Two-way player GG Jackson is impressing and is only under contract through the season. Memphis could work out a longer-term deal with him and have the 19-year-old forward take Oladipo’s roster spot, if they so choose.

The Rockets are getting a quality big man when healthy who can play alongside or behind rising star Alperen Sengun. While Adams is out for the rest of the season, he should be able to provide the kind of physical big man the team was looking for. A Wednesday report indicated players like Portland’s Robert Williams and Atlanta’s Clint Capela were among centers on Houston’s radar.

In the end, the Rockets landed on Adams, who should be full recovered for next season, according to Wojnarowski. Houston’s front office believes in the toughness and leadership he can bring to the team. Adams averaged 8.6 points, 11.5 rebounds, 1.1 blocks and 0.9 steals across 42 games with the Grizzlies.

Smith observes that while three second-round picks looks steep on paper for the Rockets, none of those picks are projected to be near the top of the second round. While the exact picks are unknown, the Rockets have seconds from Brooklyn, Golden State and Oklahoma City in 2024 and their only 2025 second is from the Thunder. Additionally, the Rockets are still well below the luxury tax for next season and can dip further by moving off of Jock Landale.