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Rockets Waive JD Davison, Drop Below Luxury-Tax Line

Because his 2026/27 option was non-guaranteed the move shifts Houston under the tax by a small amount and opens a narrow chance to add a minimum-salary player without paying the luxury tax.

Overview

  • The Houston Rockets announced they have waived guard JD Davison after previously exercising his 2026/27 team option that remained fully non-guaranteed.
  • Because Davison's $2,584,539 salary carried no guarantee the Rockets incur no dead-cap hit from the release.
  • Waiving Davison reportedly moves Houston about $14,077 below the NBA luxury-tax threshold, a gap large enough to allow signing a player to a prorated minimum contract before the regular-season finale without entering the tax.
  • Davison was a dominant G League player who won the 2024/25 G League MVP while posting 25.6 points and 7.7 assists per game, but he has logged limited NBA minutes and role-time with Boston and Houston.
  • Davison must clear waivers and could be claimed by another team, and Houston’s mix of 12 fully guaranteed contracts, one partial guarantee and one non-guaranteed salary preserves short-term roster flexibility for training-camp swaps or a last-day minimum signing.