DeMar DeRozan Contract Details: Inside The Sacramento Kings' Salary Cap Outlook For The 2026-27 Season
Sacramento Kings forward DeMar DeRozan is entering the pivotal final year of his multi-year contract as the team prepares for the upcoming 2026-27 NBA season. At 37 years old, the veteran playmaker remains a cornerstone of Sacramento's offensive scheme alongside De'Aaron Fox and Domantas Sabonis.
| Contract Feature | Details |
|---|---|
| Current Team | Sacramento Kings |
| Total Contract Value | $73.7 Million (3 Years) |
| Average Annual Value (AAV) | $24.57 Million |
| 2026-27 Base Salary | $26.2 Million |
| Contract Status | Expiring (Unrestricted Free Agent in 2027) |
| Signing Date | July 8, 2024 |
The Anatomy of the 2024 Sign-and-Trade Deal
DeRozan originally landed in Northern California via a complex three-team sign-and-trade transaction involving the Chicago Bulls and San Antonio Spurs in July 2024. The deal guaranteed the six-time All-Star $73.7 million over three seasons, providing the Kings with elite mid-range scoring and late-game execution.
This contract was structured to descend slightly, allowing Sacramento to maintain relative financial flexibility. By securing DeRozan, the Kings' front office demonstrated a clear win-now commitment to breaking deep into the Western Conference postseason.
Key terms of DeRozan's contract include:
- Fully Guaranteed Term: No player or team options are attached to the final year, ensuring he plays out the contract as structured.
- Decline Structure: Designed to minimize luxury tax exposure as younger stars on the roster command extensions.
- Trade Restrictions: He is fully eligible to be traded during the 2026-27 campaign if the Kings pivot directions.
Managing the Salary Cap and Tax Apron Implications
Entering the 2026-27 NBA season, DeRozan's $26.2 million cap hit represents a significant portion of Sacramento's active payroll. The Kings find themselves navigating the league's increasingly restrictive collective bargaining agreement (CBA) guidelines, specifically the first and second tax aprons.
With major contract commitments already on the books for core stars, managing DeRozan's expiring deal gives general manager Monte McNair a powerful asset.
- Trade Deadline Asset: An expiring $26-plus million salary is highly attractive to rebuilding franchises looking to clear cap space for the 2027 offseason.
- Tax Relief: Letting DeRozan walk in 2027 would instantly clear significant space, though it would cost them a premier offensive initiator.
- Extension Eligibility: DeRozan is eligible for a veteran extension before June 30, 2027, though age and CBA restrictions make a short-term deal more likely.
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What DeRozan's Expiring Contract Means for Sacramento's 2027 Future
As the August 2026 offseason winds down, NBA insiders are closely watching how Sacramento handles DeRozan's future. If the Kings perform well in the competitive Western Conference, keeping DeRozan as a self-rental for a deep playoff run remains the most probable outcome.
However, if Sacramento struggles ahead of the 2027 trade deadline, DeRozan could become one of the market's most coveted veteran trade chips. His elite playmaking and clutch scoring profile make him an ideal plug-and-play piece for any legitimate championship contender looking for a half-court closer.
