This NBA Salary Cap Provision Led To The Bucks Waiving Damian Lillard

In perhaps the most shocking maneuver of the last few years of NBA transactions, the Milwaukee Bucks decided to part ways with star point guard Damian Lillard, currently in the early stages of his rehab from a torn Achilles tendon.

But instead of finding a trade partner for Lillard, they took an unconventional route by utilizing the NBA’s Stretch Provision, which allows a franchise to spread a player’s salary cap hit over multiple seasons.

It’s a method that gives teams short-term cap relief by reducing the yearly amount owed to a player with a high salary. The consequence, of course, is that it elongates the duration of the contract, which is considered ‘dead money’ because the player is no longer with the team.

Why The Bucks Decided To Stretch Lillard

Lillard had two years and roughly $113 million left on his contract, meaning the Bucks had over $56 million hitting their books annually. That’s a steep price for a player they weren’t expecting back on the floor next season. Since he tore his Achilles on April 27, there’s little to no chance he’d be in uniform before next year’s playoffs.

Using this cap-relief technique, his salary will now be stretched over the next five seasons at $22.5 million each year.

The reason it’s a five-year stretch is based on the formula for all Stretch Provisions in the current CBA. You take the number years remaining on the contract (two for Lillard), double it, and then add one. Since Lillard was scheduled to be an unrestricted free agent in 2027, that means Milwaukee will be forced to deal with this salary burden until the summer of 2030.

This automatically becomes the most expensive waive-and-stretch in NBA history – and it’s not even close. In certain respects, this type of move is considered a death sentence for front offices because of how much of a limitation it puts on your long-term vision for attracting free agents.

But as it turns out, this was a necessary move considering Milwaukee’s goal was to field a competitive team next season. Particularly in the Eastern Conference, where the window continues to widen because of nightmare injuries, free agency departures, and puzzling decisions to fire head coaches (looking at you, Knicks).

Milwaukee’s incentive to alleviate cap room this summer was quickly revealed, as they lured free agent center Myles Turner away from the Pacers.

Turner agreed to terms with the Bucks on a four-year, $107 million contract, according to ESPN’s Shams Charania. He’ll earn approximately $24.8 million in the first year, sliding into that salary slot Milwaukee was able to clear by waiving Lillard.

Myles Turner Replenishes Milwaukee’s Center Void

After losing long-time center Brook Lopez for nothing, the Bucks are now on the receiving end of the Indiana Pacers watching their big man walk.

Turner, fresh off an NBA Finals appearance, was seeking a new lucrative contract with the Pacers after spending the first decade of his career with the franchise. Through all of the personnel changes, head coaching swaps, and trade rumors, he was the lone mainstay. From the Paul George era, to the brief Victor Oladipo stint, to the rise of Tyrese Haliburton, Turner stuck with Indiana and believed in the vision.

However, he became a casualty of Pacers owner Herb Simon trying to avoid the luxury tax – yet again. Indiana reportedly didn’t budge on their offer in the range of three years, $60 million guaranteed.

Understandably, Turner walked. And now he gets to bring a similar skill-set to Milwaukee that Lopez offered. The only difference is that Turner is eight years younger, vastly more athletic, and still improving in certain areas.

Last season, Lopez and Turner were first and second, respectively, in the total number of shots defended at the rim. Turner’s efficiency allowed was slightly better, while also knocking down nearly 40% of his 3-point attempts.

Lillard Can Dictate His Own Terms

For Lillard, this waive-and-stretch provision is arguably the best-case scenario when you factor in the uphill battle he’s facing from a recovery standpoint. While he would prefer to be competing for a title with Antetokounmpo, it wasn’t a realistic scenario given the Bucks’ reality.

There was no easy solution for the Bucks front office. They felt as if they couldn’t afford to wait, or bet on an aging point guard trying to come back from an injury that often causes Father Time to creep up faster than normal.

Achilles ruptures are devastating for everyone in sports, but especially when it involves a player who’s about to hit age 35 and a franchise that’s trying to salvage their business relationship with a generational megastar like Antetokounmpo.

Lillard can now choose one of two paths. He can sign with a team after clearing waivers, opting to rehab with that franchise’s medical staff and get acclimated with his new teammates during the process. Or, he could let the summer play out, and delay his free agency decision as long as he chooses.

Either way, it’s a win-win for Lillard. Assuming he can return 100% health, albeit a step slower, he’s not sacrificing anything. By getting waived, he can finish his career in any way he desires.

Lillard’s agent, Aaron Goodwin, mentioned in a statement that Dame’s focus will be staying close to his family during his rehab process. He also hinted that choosing his next team won’t be an immediate decision for Lillard, as he’ll take some time to evaluate his options:

While it’s not exactly the easiest pill for the Bucks to swallow, and Antetokounmpo is reportedly not pleased with how the situation was handled, Milwaukee had to choose a path that would keep them in contention. They essentially had to take the lesser of two evils.

To the front office, it was imperative to maintain their draft assets (which they likely would’ve had to attach to Lillard’s contract in any trade), and it was critical to give Giannis a chance at making a Finals run in 2026. By finding a creative way to steal Turner in free agency and clear some cap room, this was the only route that could keep them in the hunt for a top seed.

Milwaukee saw first hand, between 1971 and 2021, how difficult it is to reach the mountaintop. To avoid a significant drought like that again, the first step is ensuring Antetokounmpo doesn’t lose faith in the organization.

They are hoping this move illustrates they are still willing to be aggressive to keep building around the edges, even if it means paying steep penalties to do so.