Transactions listed are from July 1, 1988 to June 30, 1989

• July 5, 1988

  Tom Chambers signed as an unrestricted free agent with the Phoenix Suns.

• August 2, 1988

  Signed Avery Johnson as a free agent.

• September 19, 1988

  Signed John Lucas as a free agent.

• October 4, 1988

  Signed Mike Champion as a free agent.

  Traded a 1990 2nd round draft pick (Steve Henson was later selected) to the Milwaukee Bucks for Jerry Reynolds.

• October 25, 1988

  Waived Mike Champion.

• October 31, 1988

  Waived Danny Young.

  Waived Corey Gaines.

• February 13, 1989

  Signed Greg Ballard to a 10-day contract.

• February 26, 1989

  Signed Mike Champion to a 10-day contract.

• June 15, 1989

  Lost Jerry Reynolds to the Orlando Magic in the NBA expansion draft.

• June 26, 1989

  Traded a 1989 1st round draft pick (B.J. Armstrong was later selected) to the Chicago Bulls for Brad Sellers.

• June 27, 1989

  Drafted Dana Barros in the 1st round (16th pick) of the 1989 NBA Draft.

  Drafted Shawn Kemp in the 1st round (17th pick) of the 1989 NBA Draft.

  Traded a 1990 1st round draft pick (Gary Payton was later selected) to the Golden State Warriors for a 1989 1st round draft pick (Dana Barros was later selected).

  Traded TO_TRADE to the Chicago Bulls for a 1993 2nd round draft pick (Mike Peplowski was later selected). Seattle agreed not to select B.J. Armstrong with the 16th or 17th pick in the 1989 draft.