The New Orleans Pelicans waived guard Dalen Terry on Friday, just one day following his acquisition in a trade with the New York Knicks at the NBA trade deadline. This prompt decision highlights the Pelicans’ ongoing efforts to adjust their roster and salary structure as the season progresses.
Trade Details and Financial Reasons Behind the Waiver
According to Michael Scotto of HoopsHype, the Pelicans chose to waive Terry shortly after the official completion of the trade. League sources confirmed the move, emphasizing that it was part of New Orleans’ strategy to manage its salary cap constraints.
Brett Siegel, an NBA insider with ClutchPoints, further explained the financial rationale behind the transaction. The Pelicans were just $1 million under the luxury tax line and opening a roster spot by waiving Terry offered them more flexibility. New Orleans received two future second-round draft picks from the Knicks in exchange for Terry: one in 2026 tied to the Orlando/Milwaukee/Detroit pick order and another in 2027 linked to the Indiana/Miami/Oklahoma City/Houston lottery positioning.
Dalen Terry’s Brief Tenure with the Pelicans and Performance Overview
Terry’s journey to New Orleans was short-lived and indirect. The 23-year-old guard initially joined New York earlier in the week after the Knicks traded Guerschon Yabusele to the Chicago Bulls. New York incorporated Terry in the trade package to the Pelicans as part of acquiring guard Jose Alvarado, primarily as a mechanism to balance salaries and roster spots.
Now entering his fourth NBA season, Terry appeared in 34 games this year, recording averages of 3.5 points, 1.9 rebounds, and 1.3 assists per game. He shot 44.1 percent from the field and achieved a career-high 41.3 percent from beyond the arc, all within an average of 11.1 minutes per game in a limited role.
Pelicans Prioritize Flexibility Heading Into Final Stretch
With a 13-40 record, the Pelicans are emphasizing roster and salary flexibility over long-term commitments as they approach the end of the season. Waiving Terry not only freed up a roster spot but also helped the team stay below the luxury tax threshold, providing more options as they evaluate potential moves.
The Pelicans aim to halt a three-game losing streak when they face the Minnesota Timberwolves on Friday night at 8:00 p.m. ET, concluding a four-game road trip as they seek to improve their standing in the final weeks of the season.
The New Orleans Pelicans are waiving guard Dalen Terry, league sources told @hoopshype.
— Michael Scotto (@MikeAScotto) February 6, 2026
The Pelicans, who are $1M from the tax line, open up a roster spot by waiving Terry.
New Orleans got two second-round picks from the Knicks for him:
2026 ORL/MIL/DET (least favorable)
2027 IND/MIA/OKC/HOU (second most favorable) https://t.co/maxlhnHO6a— Brett Siegel (@BrettSiegelNBA) February 6, 2026
