According to ESPN’s Bobby Marks, the Milwaukee Bucks will receive a salary cap on Damian Lillard’s $42 million contract with the Portland Trail Blazers.
Bucks’ annual hat hits dropped from $22.5 million to $20.2 million
Milwaukee abandoned Lillard earlier this month and used the extension to owed $112.6 million of his previous contract over the next five years. This leads to an annual cap of approximately $22.5 million.
Per point, the Bucks will receive a fixed amount of about $11.65 million as Lillard’s salary in Portland exceeds the one-year veteran minimum wage ($2,048,494) for each of the next two seasons.
The formula for calculating the exact amount involves dividing Lillard’s new salary with the Trail Blazers’ new salary, minus the year’s veterinary minimum, and splitting that amount in half.
The setting will be applied after the regular season 2025-26 season, reducing Milwaukee’s annual Dead-Money Cap hit rate from $22.5 million to $20.2 million in 2029-30.
Bucks can recreate the championship around Giannis Antetokounmpo and save on caps
While $2.3 million in annual savings may seem trivial, the additional financial flexibility is crucial for the Bucks as they try to upgrade the roster of Giannis Antetokounmpo.
Additionally, reducing Lillard’s dead money may potentially help Milwaukee abandon and stretch another contract without exceeding the maximum allowable 15% cap.
The Bucks gave up Lillard earlier this month and extended the remaining $113 million on his contract to sign free agent center Myles Turner, who now has a 2028-29 player option.
A 10-year veteran, the 29-year-old Turner is the longest-serving player before the Pacers set off. Last season, he averaged 15.6 points, 6.5 rebounds and 2.0 blocks per game while scoring a career-high 39.6% three-pointer.
Settings are usually forfeited as part of a buyout agreement
Despite Lillard’s signing of a new contract, the Bucks have benefited a lot financially, but are the same as Bradley Beal’s Phoenix Sun.
According to Marks, Milwaukee chose to abandon Lillard instead of the acquisition contract, so the setting rights are usually seized as part of the acquisition agreement.
The Suns completed the acquisition Wednesday by spreading the $99 million owed Bills at $20 million per quarter over the next five years using exemptions and stretch rules.
According to ESPN’s Shams Charania, the three-time All-Stars are also planning to join the Los Angeles Clippers, after he cleared the waiver, he took a two-year, $11 million contract and received a player choice.
2026-27 player options make the 32-year-old one of the top free agents next summer. He no longer has a no-trade clause.
This means that Lillard is now one of only two players in the NBA, with full trade-free terms given in the contract. LeBron James is the only player with a contract.
