ESPN had a good story about his contract. They can basically cut him without owing any money at this point.
The Pelicans wrote multiple escape clauses into the five-year, $197 million extension Williamson signed after missing the 2021-22 season.
New Orleans paid Williamson as a franchise player but included language that protected the franchise if Williamson missed more than 22 games in the 2022-23 or 2023-24 season. He missed 53 in 2022-23, meaning Williamson's salaries in the remaining three seasons ($38.9 million in 2025-26, $41.5 million in 2026-27 and $44.2 million in 2027-28) are non-guaranteed.
"It is one the best contracts in the NBA," an Eastern Conference executive told ESPN. "But looking back, it is hard to argue that any team would have guaranteed Zion $197 million without conditions in the extension."
There are mechanisms for the non-guaranteed seasons to become fully or partially protected if Williamson satisfies weigh-in criteria set by New Orleans -- there are seven such dates during the season, with Williamson needing a combined weight and body fat percentage below 295 -- and plays in a certain number of games in the previous season. He would have to meet these criteria in the prior season for his contract to become partially or fully protected in the next season:
20% if Williamson satisfies the weigh-in criteria
40% if he plays in 41 games
20% if he plays in 51 games
20% if he plays in 61 games
For example, if Williamson played in 61 games this season and meets the weigh-in criteria, his $38.9 million salary in 2025-26 would be guaranteed. The remaining two seasons, however, would remain non-guaranteed. Sources told ESPN that Williamson is on track to reach the weight benchmarks, however, he has already missed 26 games this season, making it impossible for him to hit the 61-game mark. Once the weight clause criteria is met, the guaranteed portion for next season increases from $0 to $7.8 million. The non-guaranteed portion of his salary becomes guaranteed if Williamson is on the roster after 5 p.m. ET on July 15.
But missing the benchmarks doesn't reduce Williamson's salary -- just the amount that is guaranteed. To receive any financial benefit, New Orleans would have to take the unprecedented step of waiving Williamson. However, the Pelicans do not consider releasing Williamson to create financial flexibility to be a feasible option, according to sources with knowledge of the franchise's thinking. The small-market Pelicans know they never have been considered an attractive destination for free agents, so they don't believe slicing payroll by releasing Williamson would be a realistic path to improving the roster.
https://www.espn.com/nba/story/_/id/43174061/new-orleans-pelicans-move-zion-williamson