In a move that stunned the NBA, the Milwaukee Bucks waived superstar guard Damian Lillard on July 1, 2025, choosing to stretch the remaining years of his contract over five seasons.
The decision, aimed at creating salary cap flexibility for the acquisition of Myles Turner, carries major financial implications for both Lillard and the Bucks.
This unprecedented use of the NBA’s stretch provision allows Milwaukee to better manage its payroll, while Lillard, now an unrestricted free agent, is set to receive his full guaranteed money regardless of where he plays next.
Milwaukee’s Stretch Provision for Damian Lillard
Before being waived, Lillard had $113 million left on his contract, covering the 2025–2026 and 2026–2027 seasons. The Bucks are using the NBA’s stretch provision to spread this amount over five years, from 2025–2026 through 2029–2030. ESPN NBA Insider Shams Charania reported the Lillard move.
As a result, Lillard will receive roughly $22.5 million annually from Milwaukee for the next half-decade, no matter where he plays, or if he plays at all. This maneuver is reportedly the largest use of the stretch provision in NBA history.
Just in: The Milwaukee Bucks are waiving Damian Lillard and stretching the remaining $113 million on his contract in order to acquire Myles Turner, sources tell ESPN. Lillard’s two seasons in Milwaukee come to an end as he rehabilitates a torn Achilles tendon. pic.twitter.com/eg1D1TMFM6
— Shams Charania (@ShamsCharania) July 1, 2025
The Bucks gain immediate, though temporary, salary cap relief from this decision. Instead of carrying Lillard’s hefty cap hits of about $56 million per year for the next two seasons, they now have a more manageable $22.5 million “dead money” hit on their books each year for the next five years.
This freed-up cap space was essential in allowing Milwaukee to sign Turner to a four-year, $107 million deal, which should help strengthen the team’s frontcourt.
Additionally, the move provides Lillard with significant flexibility. The arrangement ensures he receives every cent of his guaranteed contract. Before the waiver, Lillard had already built a substantial fortune during his career, mainly with the Portland Trail Blazers, and then the Bucks.
He signed a series of lucrative extensions and supermax deals, and his career earnings are substantial. With the Bucks still owing him $113 million, his total career earnings will be significant, though the exact figure exceeding $440 million is unverified as of July 2025.
Despite the abrupt end to his time in Milwaukee, Lillard is reportedly “elated” by the decision. Now an unrestricted free agent, he has the rare chance to choose his next team without financial pressure, thanks to the guaranteed money from the Bucks.
This allows him to focus on fit and championship contention rather than salary. While he recovers from a torn Achilles, the freedom to pick his next destination is a significant silver lining for the veteran guard. As Sam Amick of The Athletic reported, Lillard is expected to sign a veteran’s minimum contract with a contender.
At the same time, the Bucks enter a new chapter. With Turner’s rim protection and shooting, Milwaukee hopes to maximize Giannis Antetokounmpo’s potential and extend its championship window for years to come (while keeping the superstar happy and in town).
Early in the article, it states: ” Lillard will receive roughly $22.5 million annually from Milwaukee for the next half-decade, no matter where he plays, or if he plays at all.” Then later: “With Lillard owed $54.1 million for this season and $58.4 million in the 2026-27 campaign, there is a salary offset for any team that acquires him during that two-year period.” I understand Lillard counts for $22.5 against the salary cap for 5 years, but the article gives two different timeframes for when he will actually receive the cash.