Bucks To Save $2.3M Annually With Damian Lillard’s New Contract

The Milwaukee Bucks will receive a salary cap benefit as a result of Damian Lillard’s new three-year, $42 million contract with the Portland Trail Blazers, according to ESPN’s Bobby Marks.

Bucks Reduce Annual Cap Hits From $22.5 Million To $20.2 Million

Milwaukee waived Lillard earlier this month and used the stretch provision to spread the $112.6 million he was owed on his previous contract over the next five years. That resulted in annual cap hits of roughly $22.5 million.

Per Marks, since Lillard’s salary with Portland exceeds the one-year veteran’s minimum salary ($2,048,494) for each of the next two seasons, the Bucks will receive a set-off amount of approximately $11.65 million.

The formula for calculating the exact amount involves taking Lillard’s new salary with the Blazers, subtracting the one-year vet minimum, and dividing that amount in half.

The set-off, which will be applied after the 2025-26 regular season, will reduce Milwaukee’s annual dead-money cap hits from $22.5 million to $20.2 million through 2029-30.

Bucks Can Retool Roster Around Giannis Antetokounmpo With Cap Savings

Although $2.3 million annual savings appears insignificant, extra financial flexibility is crucial for the Bucks as they attempt to upgrade the roster for Giannis Antetokounmpo.

In addition, the reduction of Lillard’s dead money could potentially help Milwaukee to waive-and-stretch another contract without exceeding the maximum allowable 15% of the cap.

The Bucks waived Lillard earlier this month and stretched the remaining $113 million on his contract to sign free agent center Myles Turner, who now has a player option for 2028-29.

As a 10-year veteran, the 29-year-old Turner was the longest-tenured player for the Pacers before his departure. Last season, he averaged 15.6 points, 6.5 rebounds, and 2.0 blocks per game while shooting a career-high 39.6% from 3-point range.

Set-Off Usually Forfeited As Part Of Buyout Agreement

While the Bucks are benefiting financially as a result of Lillard signing a new contract, the same cannot be said of the Phoenix Suns with Bradley Beal.

According to Marks, the right to set-off is typically forfeited as part of a buyout agreement — as Milwaukee opted to waive Lillard instead of buying out his contract.

The Suns completed a buyout with Beal on Wednesday by utilizing the waive-and-stretch provision to spread the $99 million owed to Beal over the next five years at $20 million per season.

According to ESPN’s Shams Charania, the three-time All-Star also plans to join the Los Angeles Clippers on a two-year, $11 million deal with a player option after he clears waivers.

The player option for 2026-27 allows the 32-year-old to be one of the top available players in free agency next summer. He also no longer has a no-trade clause.

This means Lillard now becomes one of only two players in the NBA with a full no-trade clause given in the contract. LeBron James is the only other player with the contractual provision.