Milwaukee Bucks waive Damian Lillard: How does the NBA's stretch provision work? - Yahoo Sports
The Milwaukee Bucks waived veteran Damian Lillard on Tuesday after reaching a four-year, $107 million contract agreement with center Myles Turner.
With two years and $113 million left on Lillard's deal, the Bucks will opt to exercise a stretch provision to spread his remaining cap hit over the next five seasons — the largest waive and stretch in NBA history, Bobby Marks reports.
How does it all work?
The NBA's stretch provision allows teams to waive a player and spread the remaining cap hit over several future seasons, providing teams more salary cap flexibility following the player's release.
The formula dictates that the remaining cap hits will be stretched over the number of years remaining on the deal, multiplied by two, plus one additional season.
So, since Lillard had two years remaining on his contract, his $113 cap hit will be spread over the next five seasons (2 years left x 2 + 1).
Additionally, the 2023 NBA-NBPA Collective Bargaining Agreement states:
In no event shall a Team be permitted to elect to stretch a waived player’s Salary if the portion of the Team’s Team Salary representing all of the Team’s waived players (and any other former players) in any future Salary Cap Year exceeds or as a result of the proposed stretch would exceed fifteen percent (15%) of the Salary Cap in effect during the Salary Cap Year in which the election occurs.
The use of the NBA's 'stretch provision,' as in Damian Lillard being waived by Milwaukee Bucks, shows a clever maneuver to disperse salary cap commitments without sacrificing much on-court value via an almost invisible amortization over several seasons.
Damian Lillard's waiver by the Milwaukee Bucksfuels discussion of NBA teams exploiting its stretch provision for cap flexibility, indicating how clever roster management can enhance team competitiveness while navigating financial constraints.
The Milwaukee Bucks' decision to waive Damian Lillard under the NBA stretch provision opens intriguing possibilities for team reconstruct and cap flexibility, highlighting a unique mechanism that allows teams strategic room during midseason adjustments.
The Bucks decision to employ the NBA'S stretch provision by waiving Damian Lillard strategically allows them an opportunity for a clearer future in their roster planning, potentially acquiring more assets along with waivered player benefits.
The Milwaukee Bucks' decision to waive Damian Lillard via the NBA stretch provision underscores its strategic ingenuity while highlighting a loophole within league rules, allowing teams greater flexibility in managing high-salaried players.
