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Memphis Grizzlies: Understanding Future Importance of Stretch Provision

By Christian Dudley

LAS VEGAS, NV - JULY 9: Dakari Johnson #44 of the Oklahoma City Thunder goes to the basket against the Toronto Raptors during the 2018 Las Vegas Summer League on July 9, 2018 at the Thomas & Mack Center in Las Vegas, Nevada. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory Copyright Notice: Copyright 2018 NBAE (Photo by Garrett Ellwood/NBAE via Getty Images)
LAS VEGAS, NV - JULY 9: Dakari Johnson #44 of the Oklahoma City Thunder goes to the basket against the Toronto Raptors during the 2018 Las Vegas Summer League on July 9, 2018 at the Thomas & Mack Center in Las Vegas, Nevada. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory Copyright Notice: Copyright 2018 NBAE (Photo by Garrett Ellwood/NBAE via Getty Images) /
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The NBA’s “stretch provision” may not mean a lot to the Memphis Grizzlies today, but it certainly will in the future.

In recent headlines involving the Memphis Grizzlies‘ roster moves, the team quickly trimmed themselves by one name. Dakari Johnson, originally acquired in the Jarell Martin trade with the Orlando Magic, was waived prior to the arrival of training camp.

This decision was strange for two reasons. For starters is the obvious, being the Grizzlies making their decision without really “test driving” the services of Johnson. Especially being low on bodies and talent at the center position, and considering that Dakari is just 22 years of age, it would have made plenty of sense for Memphis to extend an audition.

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The center position is very thin for the Memphis Grizzlies. What if Marc Gasol would suffer a significant injury, much like point guard Mike Conley did in 2017-18? Ivan Rabb made noticeable progress in his rookie season, but it is likely that he remains too raw for starter’s minutes. Beyond Rabb in this instance, the Grizzlies would have to rely upon playing JaMychal Green and/or Jaren Jackson Jr. out of position, which would then affect their depth at power forward.

On a second note in the release of Dakari Johnson, the Memphis Grizzlies were most definitely keeping their future salary cap space in mind. Due to make just $1,378,242 in the upcoming season, Memphis is a team that is not fond of paying luxury tax despite having three of the NBA’s top-32 highest-paid players. Welcome, stretch provision.

“Stretch provision” is a fancy phrase introduced in the league’s latest Collective Bargaining Agreement. This term is a way for teams to waive a player and stretch the amount of owed salary across multiple seasons rather than pay it out over the course of that season.

For the example of the Memphis Grizzlies and Dakari Johnson, his owed salary will now be paid over the course of the next three seasons. As a result, this move impacts the Grizzlies in 2018 keeps them slightly under the luxury tax threshold. The trade of Jarell Martin officially placed them under the threshold.

Being as this adds less than $1 million toward future seasons’ salary cap on Memphis’ end, it does not have much influence on those future Free-Agency targets and/or trade scenarios.

All in all, this was a somewhat smart move by the Front Office. They found a way to sneak under the luxury tax threshold slightly more and they did so in a way to not sacrifice an ongoing player development project. Though they do not have much insurance at the center position, on paper, Dakari Johnson was their weakest link.

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The Memphis Grizzlies’ roster currently stands at 15 players with one of two two-way contracts available. Training camp begins on September 25th with the team’s first preseason game scheduled for October 5th versus the Atlanta Hawks.

Go Grizz! 

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