In the NBA, managing salary cap space requires different strategies compared to the NFL. Simply cutting a player doesn’t always clear their salary from the cap, unlike the NFL where most player contracts are non-guaranteed. Instead, the NBA offers a mechanism called the stretch provision, which allows teams to distribute a waived player’s remaining salary over several seasons, providing more flexibility in managing their cap.Under the stretch provision, if a player with over $500,000 in guaranteed salary is waived, the remaining amount is spread out over multiple years. The specifics depend on when the player is released. For players waived between July 1 and August 31, the remaining salary is divided over twice the number of years left on the contract plus one. For those waived between September 1 and June 30, the salary for the current year is paid as usual, and future salaries are stretched similarly. If the player is in the final year of their contract, the stretch provision does not apply.Teams have the option to decide how to apply the stretch provision to their salary cap. Although the payment schedule is set, teams can choose whether to spread the cap impact of the player’s salary or keep the original cap figures. This flexibility allows teams to tailor their cap management strategy according to their financial needs.A practical example of this provision is the Phoenix Suns’ recent decision to waive and stretch Nassir Little’s contract. Little’s contract, which had cap hits of $6.75 million for the 2024/25 season, $7.25 million for 2025/26, and $7.75 million for 2026/27, illustrates how stretching can impact a team’s cap. If the Suns had stretched Little’s contract before August 31, the cap hits would be reduced in the short term, but extend through 2031 rather than the original end date of 2027. This move provides immediate cap relief but lengthens the commitment.The stretch provision is particularly useful for teams looking to manage their cap space efficiently. For instance, in the summer of 2022, the Trail Blazers used it to get under the luxury tax line by waiving and stretching contracts of Eric Bledsoe and Didi Louzada. Similarly, the Indiana Pacers used it to create additional cap space to sign a high-profile player. However, if a team does not need immediate cap relief, it might be more practical to apply the full salary to the current cap year, as the Charlotte Hornets did with Davis Bertans.It’s also worth noting a few key aspects of the stretch provision. First, teams can negotiate reduced buyout amounts with players, which can further affect how the remaining salary is stretched. Non-guaranteed portions of contracts are not covered by this provision, allowing teams to waive players with such clauses without extending their cap charges. Lastly, applying the stretch provision means a team cannot re-sign the player for the original term of the contract, affecting future roster decisions.Understanding the stretch provision is crucial for NBA teams aiming to navigate the complexities of salary cap management and make strategic decisions regarding their player contracts.
phlip Iorhen 
Nilsson K