We explain what the "delayed stretch" that the Cavs have applied to Ricky Rubio's salary is
Each collective agreement brings new formulas for teams to play with their financial engineering
Ricky Rubio broke his contract with the Cleveland Cavaliers last January 4th, and theoretically in the 2024/25 season, El Masnou's player was supposed to receive 1.27 million dollars. However, thanks to a new formula approved in the latest collective bargaining agreement, the delayed stretch, the Cavs can divide that money over several years, resulting in lower expenses for them in these seasons. That's exactly what the Cavs have done, splitting that dead money over 3 campaigns, so Ricky will receive around 400,000 euros until 2027.
Experts in the field may be wondering what the difference is between this delayed stretch and a classic buyout: very simple, with a buyout, the proration had to be done at the time of agreement with the player, meaning it should have happened last January 4th when they terminated Ricky's contract. With this new formula in the collective bargaining agreement, this division owed to the cut player can be done months later.
It's important to note that the new collective bargaining agreement imposes heavy fines on teams that exceed the salary cap, hence these kinds of "tricks" so that franchises have a way out when things get tough with contracts in a particular season. It may seem insignificant in Ricky Rubio's case, but when you're playing at the limit of the salary cap, a few thousand euros can mean the difference between going over or not and having to pay a hefty sum.
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