Phoenix will incur a cap hit of $1.4MM this season unless another team claims the former second-rounder, as Bobby Marks of ESPN.com relays (ESPN now link). Reed was set to receive approximately $1.61MM during the 2019/20 season and $1.75MM during the following season. Each of those seasons has a July 10 non-guaranteed trigger date.
The move clears a roster spot for Jamal Crawford, who agreed to a deal with Phoenix earlier this week. The team is short on experienced options at the point guard position, so Crawford could see playing time right away.