The final year of Hill’s contract in 2019/20 featured a $18MM salary, but only $1MM of that figure was guaranteed. By cutting the veteran guard before July 1, the Bucks will avoid having that full guarantee hit their cap for next season.
According to Charania, the Bucks are working to find the space to re-sign Hill, if possible. That suggests they won’t stretch his $1MM cap hit, since doing so would make them ineligible to sign him for 2019/20.
After trading away Tony Snell, the Bucks currently project to have about $13MM in cap room, as I noted in my preview of Milwaukee’s offseason this morning. However, the team is expected to use that room to try to re-sign Brook Lopez before going over the cap to lock up Khris Middleton and Malcolm Brogdon.
The Bucks could open up additional cap room for Hill by waiving and stretching Jon Leuer or by trading away Ersan Ilyasova without taking back salary. Alternately, the team could use its current cap room to try to bring back Hill if Lopez signs elsewhere.
If the Bucks aren’t able to re-sign Hill, he should draw interest from several other teams. He had a strong postseason run in Milwaukee, averaging 11.5 PPG, 3.5 RPG, and 2.8 APG with a .534/.417/.818 shooting line in 15 games (26.3 MPG). The Bulls are one team with interest, per K.C. Johnson of The Chicago Tribune (Twitter link).