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Contracts explained · CBA source guide

NBA stretch provision: cap hits, payments and calculator

The NBA stretch provision can spread a waived player’s post-termination salary over more salary-cap years: twice the counted remaining seasons, plus one. The team’s cap election and the player’s actual payment schedule are separate rules. Timing and contract terms determine which amounts belong in the calculation.

How the cap calculation changes on September 1

For a contract terminated on or after the first day of the 2023–24 salary-cap year, the cited rule requires both termination and the team’s election before the September 1 preceding the contract’s final season. The team provides a written election to the NBA. Being waived does not automatically establish that a team elected to stretch the cap charge. Article VII §7(d)(6), printed pages 257–259.

July 1–August 31 election

Aggregate the post-termination salary for the then-current salary-cap year and the remaining years. Divide it evenly over 2 × remaining seasons + 1, counting the upcoming season and any player-option year. §7(d)(6)(i)(B), printed page 258.

Hypothetical example: $12 million of eligible post-termination salary across two remaining seasons becomes $2.4 million per cap year for five years. The total remains $12 million; the charge is spread out, not erased.

September 1–June 30 election

The current salary-cap year’s post-termination charge stays unchanged. Only the remaining future years enter the stretch pool, divided over 2 × future seasons + 1. Count any player-option year. §7(d)(6)(i)(A), printed page 258.

Hypothetical example: a $4 million current-year charge stays $4 million. If another $10 million covers two future seasons, that future pool becomes $2 million per year for five years. The current $4 million is not added to the pool. If the contract is already in its final season after August 31, the cited cap election is unavailable.

Player payments: the 2023 CBA uses a $500,000 threshold

The cap formula does not tell you the player’s paycheck schedule. For contracts entered into or extended on or after this agreement’s effective date, Article II §4(k), printed pages 30–32 separately regulates protected Base Compensation owed under Exhibit 2 after separation from the team.

$500,000 or less in aggregate
The amount follows the prescribed semi-monthly schedule, with each installment equal to the applicable pre-separation payment until the remaining amount is paid in full.
More than $500,000 in aggregate
Protected compensation for the current season follows its existing schedule. Remaining compensation is paid in equal annual amounts over twice the counted remaining seasons, plus one, through the prescribed semi-monthly installments.

For this payment rule, the “current season” means September 1–June 30. During that period, exclude the current season when counting the future seasons. Include any season covered by a player option. The agreement gives both December and July examples. Article II §4(k)(ii), printed pages 31–32.

Exactly $500,000 belongs in the first category. An older explanation citing $250,000 is not the threshold in this reviewed 2023 provision. The $500,000 threshold governs this payment schedule; it is not a minimum salary needed to elect a cap stretch. Do not infer that the team made a cap election merely because the payment schedule is stretched.

The 15% limit, buyouts and bringing the player back

A cap stretch cannot be elected if salary for all waived and other former players in any future salary-cap year exceeds, or would exceed, 15% of the cap in effect in the election year. Checking only the new stretch charge is insufficient, and the test does not use a guessed future cap. Article VII §7(d)(6)(iii)(A), printed page 259.

The team also cannot sign or acquire the stretched player before July 1 following the end of the contract’s last season, including an option year. Reacquiring the player before that date also prevents a later election to stretch that terminated contract. §7(d)(6)(iii)(B)–(C).

A buyout and a stretch are different steps

The parties can agree on a waiver-linked amendment that reduces or eliminates compensation protection and/or changes the team’s set-off right, subject to the stated approval and waiver conditions. The cap rules allocate a reduction across the relevant years in proportion to remaining unearned protected Base Compensation. Use the resulting post-termination amounts, not an old headline contract total. Separate buyout-related re-signing restrictions can also apply. Article II §3(p), printed page 20; Article VII §7(d)(5), printed page 257.

Non-guaranteed dollars are not automatically an amount owed after termination. Compensation protection, option terms and possible set-off must be assessed from the actual agreement. This guide does not classify individual NBA contracts or certify that a team can make an election.

Quick answers

What is the NBA stretch provision?
It spreads a waived player’s post-termination salary across more salary-cap years when the team makes a valid election. The ordinary allocation period is twice the counted remaining seasons, plus one. Rescheduling the player’s actual protected payments is a separate CBA rule.
Does waiving and stretching erase the salary?
No. Stretching reallocates the applicable remaining amount across more years; it does not itself cancel the obligation. A negotiated buyout can separately reduce compensation protection, and the calculation must use the resulting post-termination amounts.
What changes on September 1?
For an election from July 1 through August 31, the cap allocation includes the upcoming season. From September 1 through June 30, the current salary-cap year stays unchanged and the formula applies to remaining future seasons. Termination and election must occur before the September 1 preceding the contract’s final season.
Is the protected-payment threshold $250,000 or $500,000?
For contracts entered into or extended under the cited 2023 CBA, Article II §4(k) uses $500,000. An aggregate amount of $500,000 or less follows the prescribed semi-monthly payment schedule. More than $500,000 follows the separate current-season and remaining-compensation schedule. This is a payment rule, not a minimum amount for electing a cap stretch.
What is the 15% limit on a cap stretch?
The election is prohibited if salary for all waived and other former players in any future salary-cap year exceeds, or would exceed, 15% of the salary cap in effect in the election year. Checking only the newly stretched player is insufficient.
Can a team bring back a player whose salary it stretched?
A team that stretches the salary for cap purposes cannot subsequently sign or acquire that player before July 1 following the end of the contract’s last season, including an option year. Separate buyout-related restrictions may also apply.

For the steps before a new signing, read NBA buyout rules, waivers and the March 1 deadline.

Continue with salary-cap and apron rules, 10-day contracts and their separate termination procedure, or reported transactions.

WHYNBA editorial explanation, reviewed October 1, 2026 against the collected 2023 NBA–NBPA Collective Bargaining Agreement. Examples are hypothetical. PDF anchors include front matter; citations also give printed page numbers.

NBPA agreement link and reviewed document last checked: .