In a surprising turn, the Memphis Grizzlies have elected to not pick up Luke Kennard’s $14.8 million team option, according to ESPN’s Adrian Wojnaroswki.

Kennard has been one of the NBA’s top 3-point shooters and made 48.3% of his attempts in 63 games with Memphis. He joined the Grizzlies in February 2023 via trade and gave the team a much-needed shooting boost.

The report said both sides are interested in a restructured deal, which likely would need to get under the first tax apron.

If he doesn’t return, Memphis certainly will miss Kennard’s shooting, but not bringing the seven-year pro back could create flexibility in other areas. The Grizzlies are now able to stay under the first apron, which gives them more flexibility heading into free agency.

The non-taxpayer mid-level exception is more than $12.8 million, and the Grizzlies could use that to bring in an impactful player. Picking up Kennard’s team option would have taken away this asset and given Memphis access to the $5.2 million taxpayer MLE instead.

No Kennard also opens up a roster spot. Before the draft, in which the Grizzlies acquired three players, they had 13 players on standard contracts. That number must be down to 15 at the start of the season.

First-round draft pick Zach Edey will go on a standard deal, as will one of the second-round picks, either Jaylen Wells or Cam Spencer. Memphis has one of its three two-way contract spots open, and Spencer is more likely to occupy that spot alongside Scotty Pippen Jr. and Trey Jemison.

The decision to not bring back Kennard is puzzling when factoring in how most of the Western Conference is taking big swings at title contention. Memphis losing one of its best bench pieces could end up being more costly than just a financial decision.

Damichael Cole is the Memphis Grizzlies beat writer for The Commercial Appeal. Contact Damichael at [email protected]. Follow Damichael on X, formerly known as Twitter, @DamichaelC.