What does stretch and waive mean in the NBA? Taking a closer look at the stretch provision

The NBA is one of the most lucrative sporting leagues in the world, and big contracts are commonplace. While the value of the contract tends to be dictated by various factors, form is certainly a key factor.

Naturally, there are instances where teams have been hampered by bad contracts after players failed to live up to their contract values at a particular point in time.

Do teams have an out, then? Players cannot just be waived, especially with multiple years left on their contracts. With player and team interests in mind, the NBA's Collective Bargaining Agreement provides a "stretch" provision that has been put into use quite often by NBA franchises.

What the stretch and waive option means is, as the phrase describes, -- it gives teams the option to stretch out expensive contracts over a longer period of time while waiving the player involved as an immediate action. This allows teams to cut down on the cap hit for the particular season while also opening up a roster spot.

USA Basketball Team Players

For players, this allows them to move on to apparent greener pastures as a free agent while still getting their guaranteed money from the old team over time.

The NBA has seen quite a few instances of the stretch and waive option being exercised by franchises. Today's news suggests that JaVale McGee is being stretched and waived by the Dallas Mavericks.

This would let the Mavericks pay the big man $2.3 million per year over a five-year span rather than paying him $11.7 million over the next two years.

A win-win immediately for all parties involved - the stretch and waive is one of the NBA's unique rules that has led to various interesting roster-building exercises.

NBA's waive and stretch provision has additional complexities, making it a tough decision.

Luol Deng's infamous $72 million contract is one of the most famously stretched and waived contracts in NBA History

Timeliness in the execution of a stretch-and-waive decision is key for NBA rosters. In a move to protect the players and their chances of getting a new contract during free agency, various deadlines have been placed for making stretch and waiver decisions under the Collective Bargaining Agreement.

If a player is waived between July 1 and August 31, the salary owed to the player may be paid over twice the number of years remaining on his contract, plus a year added on.

If the decision takes place between September 1 and June 30, the player's salary for the ongoing season may be paid in full and the remainder may be spread across a period of twice the number of years remaining on his contract, plus a year added on.

If the decision is taken in the final year of their contract between September 1 and June 30, there is no option for stretching the remainder, and it may only be a full buyout.

Luol Deng, Joakim Noah, Deron Williams, and Monta Ellis are a few examples of players who were stretched and waived by their respective franchises. Who do you think has a contract that might be stretched and waived in upcoming off-seasons?