Transactions listed are from July 1, 1985 to June 30, 1986
- September 20, 1985
October 2, 1985
Waived Derrick Gervin.
October 3, 1985
Waived Jeff Cross.
October 13, 1985
Signed Paul Thompson as a free agent.
October 22, 1985
Waived George Johnson.
October 23, 1985
Traded Clint Richardson to the Indiana Pacers for a 1989 2nd round draft pick (Reggie Cross was later selected) and a future 2nd round draft pick. The future 2nd round draft pick traded to Philadelphia was conditional and was not exercised.
December 4, 1985
Signed Perry Moss as a free agent.
December 5, 1985
Signed Butch Carter as a free agent.
Waived Voise Winters.
December 16, 1985
Waived Butch Carter.
- January 10, 1986
January 31, 1986
Signed Bob McAdoo as a free agent.
April 4, 1986
Signed Michael Young as a free agent.
June 16, 1986
Traded Terry Catledge, Moses Malone, a 1986 1st round draft pick (Anthony Jones was later selected) and a 1988 1st round draft pick (Harvey Grant was later selected) to the Washington Bullets for Cliff Robinson and Jeff Ruland.
June 17, 1986
Drafted David Wingate in the 2nd round (44th pick) of the 1986 NBA Draft.
Drafted Keith Colbert in the 3rd round (56th pick) of the 1986 NBA Draft.
Drafted Ron Rowan in the 3rd round (67th pick) of the 1986 NBA Draft.
Drafted Wes Stallings in the 4th round (90th pick) of the 1986 NBA Draft.
Drafted Kevin Holmes in the 5th round (113th pick) of the 1986 NBA Draft.
Drafted Andre McCloud in the 6th round (136th pick) of the 1986 NBA Draft.
Drafted Dan Palombizio in the 7th round (159th pick) of the 1986 NBA Draft.