Transactions listed are from July 1, 1996 to
June 30, 1997.
- July 2, 1996
Waived Vincenzo Esposito.
- July 23, 1996
Released Oliver Miller.
Traded Jimmy King, a 1998 2nd round draft pick (Ansu Sesay was later selected) and a 1999 2nd round draft pick (Gordan Giricek was later selected) to the Dallas Mavericks for Popeye Jones and a 1997 1st round draft pick (John Thomas was later selected). Toronto had the option to swap 1st round draft picks with Dallas in 1997 (a draft pick owned by Dallas that was originally owned by Minnesota) but did not do so.
- July 24, 1996
Released Dwayne Whitfield.
Released Alvin Robertson.
- August 29, 1996
Signed Walt Williams as a free agent.
- October 3, 1996
Signed Donald Whiteside as a free agent.
- October 11, 1996
Signed Benoit Benjamin as a free agent.
- October 15, 1996
Waived Michael McDonald.
- November 12, 1996
Waived Benoit Benjamin.
- November 13, 1996
Signed Brad Lohaus as a free agent.
- November 29, 1996
Signed John Long as a free agent.
- December 2, 1996
Waived Brad Lohaus.
Signed Earl Cureton as a free agent.
- January 6, 1997
Waived Donald Whiteside.
- January 12, 1997
Signed Jimmy Oliver to a 10-day contract.
- January 23, 1997
Signed Clifford Rozier to a 10-day contract.
- January 25, 1997
Signed Reggie Slater to a 10-day contract.
- February 1, 1997
Signed Clifford Rozier to a contract for the rest of the season.
- February 3, 1997
Signed Reggie Slater to a contract for the rest of the season.
- February 13, 1997
Signed Oliver Miller to a contract for the rest of the season.
Earl Cureton retired.
- February 20, 1997
- June 25, 1997
Drafted Tracy McGrady in the 1st round (9th pick) of the 1997 NBA Draft.