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Chicago Bulls salary cap: Rip Hamilton waived under the stretch provision

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still on the books through 2016!
still on the books through 2016!
USA TODAY Sports

Extremely minor salary cap note today, but that's what Mark Deeks specializes in!

When waiving Rip Hamilton earlier this summer, the Bulls not only were able to pay the remaining $1m of the buyout over 3 years, they elected to spread out that amount over their cap as well. This is referred to as the 'stretch provision' and was a new element of the 2011 CBA (which Rip was signed under).

For the Bulls, that means that instead of a $1m cap figure for Rip in 2013-14, that number is now evenly spread out over the next three years.

It's a very small amount, obviously, but what it shows is that while the Bulls trumpet 'flexibility', in some cases they'll sacrifice it for cash. As a tax team this year they just lowered their bill at the (small) expense of the 2014 plan.

[UPDATE by your friendly BullsBlogger, 09/06/13 8:22 AM CDT: Bulls Confidential gives an update on that 2014 plan here. It's pretty sobering. ]