Thursday, August 31 is the last day that an NBA team will be able to waive a player who has a guaranteed salary for 2023/24 and stretch that player’s ’23/24 salary across three seasons.
[RELATED: Hoops Rumors Glossary: Stretch Provision]
A player who is waived between September 1 and the end of the 2023/24 season can still have his cap hit(s) for 2024/25 and future seasons stretched across multiple years, assuming he’s owed guaranteed money beyond this season. But his ’23/24 cap charge would remain unchanged in that scenario, unless he reaches a buyout agreement with his team.
The stretch provision allows teams to gain some short-term relief at the cost of reduced long-term flexibility. It’s used most frequently by teams in the luxury tax that want to either lower their tax bill (or duck out of tax territory entirely) or by teams that want to create a little extra cap room to accommodate a specific roster move.
Teams haven’t employed the stretch provision all that frequently in recent years. In fact, it hasn’t been used at all so far this offseason.
However, the Mavericks reportedly intend to utilize it when they waive center JaVale McGee, who is owed a $5,734,280 guaranteed salary for 2023/24 and holds a $6,007,341 player option for ’24/25.
Since the stretch provision allows a team to spread the player’s remaining salary across twice his remaining years, plus one additional year, Dallas would be able to stretch McGee’s $11,741,621 over five seasons. That would work out to annual dead-money cap hits of $2,348,324 through 2027/28.
There aren’t many other obvious candidates to have their 2023/24 salaries stretched, but the deadline is still worth keeping in mind for the possibilities it will take off the table. Any player on a guaranteed expiring contract who is waived after August 31 will have his remaining salary count entirely against his team’s ’23/24 books.
Why not trade McGee?
Teams probably didn’t want his contract. He’ll probably sign somewhere for the veterans’ minimum.
He has a negative value indeed. And 11.7 million is a lot of money. It would be different if it was expiring.
Now that I think about it, a pure dump is not simple.
The other team would need to give up cap space or a trade exception.
They could receive 6.3 million in cash, but that prevents them for getting cash in the future.
Then there would be 5.4 million remaining. Combined with the cash/cap sacrifices of the other team that would need to be three 2nd rounders I guess. A lot to give up for Dallas.
Taking back one or two players that also have a negative value would have been the only realistic option. But also there picks might be needed for the sacrifice of cap space next year.
Another player signing “miscalculation” by Mavs.
Don’t be surprised when Lowery is waived. Tier one teams don’t want his salary in a trade and tier two won’t trade for him.