The Thunder will acquire two draft exceptions and save $1 million in salary in a deal that sends Favors, guards Ty Jerome and Theo Maledon and forward Moe Harkless to the Rockets for David Nwaba, Sterling Brown, Trey Burke and Marquese Chriss.
The 2026 second-round pick owed to Houston will be the second-least favorable of Oklahoma City, Dallas or Philadelphia's pick, according to the Thunder.
The deal drops the Thunder approximately $10 million under the luxury tax threshold. After the trade, both the Thunder and Rockets have 18 guaranteed contracts on their respective rosters and will need to pare them down to 15 by Oct. 17.
Harkless, who was acquired in the trade with Atlanta, can be moved again because he was absorbed into a disabled player exception. Only Maledon and Nwaba are under contract for the 2023-24 season -- both with team options.
Front office insider Bobby Marks contributed to this report.