Transactions listed are from July 1, 1985 to
June 30, 1986.
- July 24, 1985
Waived Billy McKinney.
- September 6, 1985
- September 26, 1985
- September 27, 1985
Signed Jamaal Wilkes as a free agent.
- October 16, 1985
Waived Ray Williams.
- November 15, 1985
Signed Jim Thomas as a free agent.
- November 25, 1985
- December 10, 1985
Waived Jim Thomas.
- December 17, 1985
Waived Jay Murphy.
- December 26, 1985
Jamaal Wilkes retired.
- January 6, 1986
Signed Wallace Bryant to the first of two 10-day contracts.
- January 14, 1986
Traded a 1986 1st round draft pick (Arvydas Sabonis was later selected) and a 1988 2nd round draft pick (Rolando Ferreira was later selected) to the Portland Trail Blazers for Darnell Valentine and a 1988 2nd round draft pick (Tom Garrick was later selected).
- January 31, 1986
Signed Jeff Cross to a 10-day contract, then signed to a contract for the rest of the season.
- March 31, 1986
Signed Ozell Jones as a free agent.
- June 17, 1986
Drafted Dwayne Polee in the 3rd round (54th pick) of the 1986 NBA Draft.
Drafted John Brownlee in the 4th round (78th pick) of the 1986 NBA Draft.
Drafted Steffond Johnson in the 5th round (100th pick) of the 1986 NBA Draft.
Drafted Tim Kempton in the 6th round (124th pick) of the 1986 NBA Draft.
Drafted Johnny Brown in the 7th round (146th pick) of the 1986 NBA Draft.