NBA teams face final chance to use stretch provision on 2025-26 salaries

Friday marks the last chance for NBA teams to waive a player and use the stretch provision on his 2025-26 salary.

As Luke Adams of HoopsRumors relayed, the cutoff isn’t August 31 anymore. Under the current CBA, a player must clear waivers by August 31, which means he has to be placed on waivers by 4 p.m. Central time on August 29.

It’s a subtle change in wording, but an important one. Miss the Friday deadline, and any guaranteed 2025-26 money stays locked on this year’s books. Teams can still stretch out future years on a contract if a buyout is reached later, but the immediate cap hit for 2025-26 won’t budge.

The stretch rule is simple in theory: spread a player’s remaining guaranteed salary across twice the number of years left on his deal, plus one more. The short-term benefit is cap and tax relief; the downside is long-term dead money. Historically, it hasn’t been used all that often, but this summer produced some massive examples:

• Damian Lillard (Bucks): $112.6 million stretched into $22.5M annually through 2029-30

• Bradley Beal (Suns): $96.9 million stretched into $19.3M annually through 2029-30 after a buyout

• Cole Anthony (Grizzlies): $11.1 million stretched into $3.7M annually through 2027-28

• Vasilije Micic (Bucks): $2 million stretched into $667K annually through 2027-28

The Bucks and Suns used the rule to slash tax bills and maneuver below the dreaded second apron, while Memphis created room to make other moves.

Don’t expect a wild wave of cuts before Friday, but the deadline matters. Any guaranteed contract waived after August 29 — without a buyout or waiver claim — will stick in full on the 2025-26 cap sheet. Teams flirting with the apron or the luxury tax line have one last window to get creative.

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