The Sixers and Mavericks have agreed to a trade, according to Shams Charania of ESPN (Twitter links), who reports that forward Caleb Martin is headed to Dallas in exchange for guard Quentin Grimes and Philadelphia’s 2025 second-round pick, which the Mavs acquired in a previous deal.

Martin, who signed a four-year, $35MM contract with the Sixers last summer that includes over $5MM in incentives and a 15% trade kicker, was one of several Philadelphia players afflicted by the injury bug in 2024/25, having been limited to 31 outings through the team’s first 48 games.

Martin has been out since January 10 due to a right hip strain, but appears to be nearing a return, having been listed as questionable to play on Tuesday.

When healthy, the 6’5″ forward was an effective role player for the 76ers, averaging 9.1 points, 4.4 rebounds, and 2.2 assists in 30.4 minutes per game. He has registered a .435/.379/.622 shooting line so far this season and provided solid, versatile defense on the wing.

Grimes, meanwhile, has enjoyed a strong bounce-back season in Dallas after being traded from the Pistons to the Mavericks last summer. The 24-year-old averaged 10.2 points, 3.8 rebounds, and 2.1 assists in 22.8 minutes per night for the Mavs, with a .463/.398/.765 shooting line in 47 outings (12 starts). Like Martin, he’s considered a plus on defense.

As good as Grimes has been in his rotation role, his contract situation was uncertain beyond this season after he turned down a rookie scale extension offer from the Mavs last fall. Having not accepted that deal, which was reported to be worth in the neighborhood of $9MM annually for three years, Grimes was on track to become a restricted free agent during the summer of 2025.

By sending him to Philadelphia, Dallas will avoid going back to the negotiating table with Grimes and will instead get some multi-year cost certainty with Martin, who’s under contract through at least the 2026/27 season before he has to make a decision on his ’27/28 player option. Newly acquired guard Max Christie, who was dealt from the Lakers to the Mavs in the Luka Doncic/Anthony Davis blockbuster, figures to step into Grimes’ role in the backcourt.

The gap between Grimes’ $4.3MM cap hit and Martin’s $8.15MM salary means the Mavericks will go back into luxury tax territory as a result of the deal after having ducked that line in the Doncic trade. If Martin doesn’t waive his trade kicker, his cap charge would increase by another $1.04MM, according to cap expert Yossi Gozlan, who notes (via Twitter) that would leave Dallas just $171K below its first-apron hard cap.

If Martin receives his trade bonus, the Mavs will have to use one of their existing trade exceptions to acquire him, since Grimes’ salary wouldn’t quite be enough for salary-matching purposes. If Martin waives that bonus, Dallas could preserve its exceptions and use Grimes to match.

Whether or not Martin gives up his bonus, this move wouldn’t have been possible for the Mavs if Davis hadn’t waived his trade bonus as part of the deal that sent him to Dallas. He told reporters on Tuesday that he wanted to give general manager Nico Harrison the ability to improve the roster around him and Kyrie Irving as much as possible, per Tim MacMahon of ESPN.

“Trying to help the team,” Davis said. “Obviously you always want to get better and losing a monumental piece like Luka … it’s a lot, right? So I’m just trying to do my part and help Nico and the organization on how we can continuously get better. That’s just always the right thing to do.”

As for the Sixers, while they’re not throwing in the towel on the 2024/25 campaign following a disappointing 19-29 start, they’re clearly thinking about their future beyond this season in swapping out Martin for Grimes (who is five years younger) and a 2025 second-round pick while generating some tax savings.

The draft pick the Sixers are acquiring is technically the most favorable of their own and the Nuggets’ 2025 second-rounders, which will certainly be the Philadelphia pick.

As Bobby Marks of ESPN tweets, the 76ers will save about $6.7MM on their projected luxury tax bill as a result of this deal and move below the first tax apron. They’re still operating about $6.5MM above the tax line.