Transactions listed are from July 1, 1985 to June 30, 1986

• July ?, 1985

  Waived Mark Davis.

• September 5, 1985

  Signed Derrick Rowland as a free agent.

• September 11, 1985

  Signed Dirk Minniefield as a free agent.

• September 17, 1985

  Waived Kevin Williams.

• October 22, 1985

  Waived Derrick Rowland.

• December 10, 1985

  Traded Ron Anderson to the Indiana Pacers for a 1987 4th round draft pick (Carven Holcomb was later selected).

• December 16, 1985

  Waived Ennis Whatley.

• January 11, 1986

  Signed Ron Brewer as a free agent.

• February 10, 1986

  Traded Johnny Davis to the Atlanta Hawks for Eddie Johnson.

• March 4, 1986

  Signed Ben McDonald as a free agent.

• March 16, 1986

  Appointed Gene Littles as Interim Head Coach.

  Fired George Karl as Head Coach.

• June 16, 1986

  Signed Adrian Branch as a free agent.

  Traded Roy Hinson to the Philadelphia 76ers for a 1986 1st round draft pick (Brad Daugherty was later selected).

• June 17, 1986

  Drafted Brad Daugherty in the 1st round (1st pick) of the 1986 NBA Draft.

  Drafted Ron Harper in the 1st round (8th pick) of the 1986 NBA Draft.

  Drafted Johnny Newman in the 2nd round (29th pick) of the 1986 NBA Draft.

  Drafted Kevin Henderson in the 3rd round (50th pick) of the 1986 NBA Draft.

  Drafted Warren Martin in the 4th round (73rd pick) of the 1986 NBA Draft.

  Drafted Ben Davis in the 5th round (96th pick) of the 1986 NBA Draft.

  Drafted Gilbert Wilburn in the 6th round (119th pick) of the 1986 NBA Draft.

  Drafted Ralph Dalton in the 7th round (142nd pick) of the 1986 NBA Draft.

  Traded a 1989 2nd round draft pick (Jeff Hodge was later selected) to the Dallas Mavericks for Mark Price.