GVC
Well-Known Member
Another re-sign Millsap thread (I know, I know...FWIW I wouldn't be upset if he's let go). Just thought mentioning the stretch provision for those worried about how re-signing a Jazz player might affect the team's ability to re-sign current and future young players.
The new CBA includes a "Stretch Provision" whereby teams can "stretch" the remaining salary and cap hit of a waived player over 2 times the contract's remaining seasons plus 1 season. That is, if a player is waived with 2 years left on his contract, the remaining salary and cap hit can be stretched over 5 seasons.
Say the Jazz are able to re-sign Millsap to a frontloaded contract starting at $9.5mm (year 1) and ending at $6.65mm (year 5) (I've left out a signing bonus, as that makes the calculations/analysis tougher, and I'm not 100% sure how a signing bonus is affected by the stretch provision). If the Jazz waive Millsap after year 2, when Kanter/Burks extensions/new contracts kick in, he would have $22.0875mm to be stretched out over 7 years, for an average of less than $3.2mm per year (minus any amount set off if/when Millsap is signed by another team, assuming he clears waivers).
While having $3.2mm of wasted salary on your books is not ideal, having this new option makes re-signing your own players a bit more palatable/less risky, as mistakes can be dampened. If Locke is right in thinking that the market for Millsap this offseason will roughly be what he was offered in an extension this past season, and the Jazz can retain him for that amount, I think it's a no-brainer unless the Jazz can acquire assets in an S&T OR need the cap space to sign other free agents.
The new CBA includes a "Stretch Provision" whereby teams can "stretch" the remaining salary and cap hit of a waived player over 2 times the contract's remaining seasons plus 1 season. That is, if a player is waived with 2 years left on his contract, the remaining salary and cap hit can be stretched over 5 seasons.
Say the Jazz are able to re-sign Millsap to a frontloaded contract starting at $9.5mm (year 1) and ending at $6.65mm (year 5) (I've left out a signing bonus, as that makes the calculations/analysis tougher, and I'm not 100% sure how a signing bonus is affected by the stretch provision). If the Jazz waive Millsap after year 2, when Kanter/Burks extensions/new contracts kick in, he would have $22.0875mm to be stretched out over 7 years, for an average of less than $3.2mm per year (minus any amount set off if/when Millsap is signed by another team, assuming he clears waivers).
While having $3.2mm of wasted salary on your books is not ideal, having this new option makes re-signing your own players a bit more palatable/less risky, as mistakes can be dampened. If Locke is right in thinking that the market for Millsap this offseason will roughly be what he was offered in an extension this past season, and the Jazz can retain him for that amount, I think it's a no-brainer unless the Jazz can acquire assets in an S&T OR need the cap space to sign other free agents.
