MAVS NEWS:

[SleepingHero]

What are the stretch provision specific rules for these next two seasons - is anything he earns additive to the big Bucks (pun intended) he‘ll get from Milwaukee or does it just lower the bill of the Bucks and Lillard gets the same money no matter if he signs a minimum deal or a bigger contract?

1) Yes. Lillard's money will be additive. He signed a guaranteed contract, so he will be given ALL the money he signed for. If this was a buyout, that'd be a different story. But even if Lillard signed elsewhere, the money he gets from the Bucks will remain.

And 2) As I understand it. Yes, this does affect the cap-charge the Bucks would be affected by if Lillard signed elsewhere, but it won't be by much.

There is a rule called "Set-Off" in the CBA. Before we begin, the Set-Off only affects how much the waiving team pays the player. It DOES NOT reduce the cap hit, UNLESS this waived player was also stretched. And finally, it only can apply to guaranteed money (obviously right? Because if it was non-guaranteed, it never counted in the first place!).

Okay so the formula for the "set-off" provision is as follows: 50% of the DIFFERENCE between the waived player's new salary and the minimum salary, but only if the NEW salary exceeds the minimum (e.g., if Dame signs elsewhere for the vet min, this provision does not apply). 

Now the "set-off" provision when applied to a stretched-waived player affects the total guaranteed salary he was waived for, not the per-year cap hit the Bucks are paying.

Right, so,  the Bucks waived $112,583,016 of the last 2 years of Dame's contract. With the stretch-waive, we take 2 years left X 2=  4 + 1= 5 years cap charge. Thus this 112 mil over 5 years works out to be $22,516,603. That is the per year cap charge of dead money the Bucks will be paying. 

Now for the set off:

Lets say Lillard signs elsewhere for 10mil starting salary. The formula for the setoff is 50% the difference between the new salary and Lillard's minimum. So 10mil-3.6mil(vet min)= 6.4. Now we divide that by 2 which gives us 3.2 mil.  

Thus the "set-off" applied will be 3.2 mil to the TOTAL amount waived by the Bucks. Which brings the new S/W number to $109,383,016.  

Now we re-apply the S/W calculation: 109/5 gives us a new cap charge of $21,876,603. This means the Bucks will save a whopping 640k a year. 

So yes, there will be a reduction, but at this scale it's basically a rounding error. 

This "Set-Off" provision matters more on smaller S/W deals, such as McGee where the cap hit is 2.2 mil, but again it's nothing to really factor in. Now if Lillard signs another star level deal like 30 mil a year, now the Bucks can see some real savings (~$19,876,603 vs the current amount of $22,516,603). But that's kind of unrealistic for a 35 year old guard coming off an achilles injury.