Walter Clayton Jr.’s second NBA season is taking an unexpected turn.

The Memphis Grizzlies are waiving the former Florida star along with forward Micah Peavy ahead of the NBA’s roster deadline, according to ESPN’s Shams Charania. The moves bring Memphis down to the league maximum of 15 players on standard contracts.

Clayton was the No. 18 overall pick in the 2025 NBA Draft and arrived in Memphis in February as part of the massive trade that sent Jaren Jackson Jr. to the Utah Jazz. He appeared in 24 games for the Grizzlies after the deal, averaging 9.7 points, 5.7 assists and 2.1 rebounds while shooting 36.6% from 3-point range.

His roster spot became less secure over the offseason. Clayton missed an important development window after suffering a knee injury during summer league. He struggled to build momentum in the preseason, shooting 33.3% from the field in 47 minutes across four games. Memphis also entered the season with considerable point guard depth.

Before waiving Clayton, Memphis reportedly explored the trade market for the second-year guard. CBS Sports and NBC Sports both reported Monday, citing NBA insider Marc Stein, that the Grizzlies were actively shopping Clayton before the roster deadline, with Sacramento emerging as a possible destination.

Clayton remains one of the most accomplished guards in Florida history after earning consensus All-America honors and Final Four Most Outstanding Player during the Gators’ national championship run. He averaged 18.3 points and 5.7 assists in his final season in Gainesville.

He will now head to waivers, where another NBA team can claim his contract.