The Sixers are trading KJ Martin and two second-round picks to the Detroit Pistons, a league source confirmed to PhillyVoice on Wednesday morning. It is a cost-cutting move for the Sixers, who appear focused on ducking the NBA's luxury tax threshold. Keith Pompey of The Philadelphia Inquirer was first to report that Martin would land with the Pistons.
PhillyVoice reported on Wednesday morning that Detroit is receiving the Milwaukee Bucks' 2027 second-round pick and the Dallas Mavericks' 2031 second-round pick in the deal. The Sixers acquired the Milwaukee pick in last year's trade deadline swap of Patrick Beverley and Cameron Payne, while they landed the Dallas pick as part of a sign-and-trade involving Buddy Hield last summer.
As things stand now, the Sixers are $698,231 below the tax with two roster spots open, according to salary cap expert Yossi Gozlan. Some further maneuvering could be required to fill out the roster and stay below the threshold, but between this trade and the swap of Caleb Martin and Quentin Grimes the team made with the Dallas Mavericks on Tuesday afternoon, the vast majority of the work is done to avoid being taxpayers.
This saves the Sixers much more money than what meets the eye. Trading Caleb Martin for Grimes trimmed the team's payroll by nearly $4 million, and not only are they now shedding Martin's $7,975,000 salary as well, but because they are ducking the luxury tax by doing so, they are also avoiding making a tax payment to the non-taxpaying teams and setting themselves up to be one of the non-taxpaying teams on the receiving end of tax payments.
It is a bizarre calculus to the untrained eye, and still often difficult to gather for the trained eye, too. But on Wednesday morning, Gozlan calculated that the two trades could save the Sixers more than $40 million when considering the reduction in salary and a tax bill and being replaced by a tax payment:
The Philadelphia 76ers save $40+ million by trading Caleb and KJ Martin.
💰$14 million off payroll
💰$17 million off tax
💰~$12-14 million gained from tax distribution
The Sixers have ducked the tax for a third straight trade deadline after coming into it over the threshold.— Yossi Gozlan (@YossiGozlan) February 5, 2025
This, of course, is not what anybody wants or needs to hear. While the Sixers likely would have had to waive KJ Martin in the summer to bolster a potential offer to Guerschon Yabusele in free agency, they did not gain any flexibility by trading him now. His $8,025,000 salary for next season is non-guaranteed until the middle of January 2026. Keeping a young and productive player around on a non-guaranteed deal and holding onto the two second-round picks the Sixers had to part with would have been more helpful, but it would have come at a significant financial cost.
MORE: Instant reaction to Caleb Martin-Quentin Grimes trade
Follow Adam on Twitter: @SixersAdam
Follow PhillyVoice on Twitter: @thephillyvoice
