Khris Middleton has agreed to a three-year, $17.6 million contract with the Washington Wizards via a sign-and-trade that returns him to the capital after two seasons in Dallas. The Mavericks open a $5.6 million trade exception as part of the transaction, a figure that aligns with the pending Marcus Sasser contract and can be combined with the Santi Aldama deal to preserve the full $20 million exception generated by the Davis trade.

Dallas entered this offseason as the only team without a free-agency signing. The lone move on their roster was Marvin Bagley III’s one-year deal with the Denver Nuggets. Now the Mavericks are poised to acquire Santi Aldama, Tarik Biberovic and, most likely, Marcus Sasser as part of a larger six-team shuffle. Details on any assets the Wizards might send back to Dallas have not been disclosed, though a second-round pick would be a reasonable expectation.

The Wizards are moving D’Angelo Russell and a second-round pick to the Memphis Grizzlies as part of the broader trade framework. Middleton, a 14-year veteran, brings a reliable three-point shot, versatile defense and the kind of locker-room leadership the Wizards have lacked since acquiring him. His contract fits comfortably under Washington’s cap, giving the club flexibility to address other needs in the upcoming season.

For Dallas, the $5.6 million exception can be used immediately or aggregated with the Aldama package to keep the larger $20 million exception alive, a rare asset for a club that entered free agency with no signings of its own. Preserving that larger exception provides the Mavericks with the ability to add depth or future assets without compromising their cap structure, supporting a timeline built around Luka Dončić and high-upside prospects.

Middleton’s contributions helped the Mavericks win a handful of games down the stretch, but the team still missed the postseason. By converting his veteran value into cap maneuverability and potential youthful pieces, Dallas aligns its roster more closely with its long-term goals. Washington, meanwhile, gains a veteran wing who can space the floor and defend multiple positions, complementing a young core anchored by Bradley Beal and Kristaps Porziņģis.