According to Michael Scotto of Hoops Hype, the Blazers will use the waive-and-stretch provision on Louzada. This means Louzada’s $1.88 million contract will be paid in $268,032 increments over the next seven seasons, as ESPN’s Bobby Marks broke down. The move will put Portland under the luxury tax, giving the organization access to the tax distribution awarded to teams below the tax.
Marks noted that number sits at a league-record $16.5 million per team, though it’ll likely drop over the season.
The tax distribution right now is a league record $16.5M per team that is below the tax.— Bobby Marks (@BobbyMarks42) August 29, 2022
That will likely drop over the season.
The waive and stretch provision makes total sense. https://t.co/ojLjwfck6M
Portland acquired Louzada from the New Orleans Pelicans in the same trade that sent guard CJ McCollum to New Orleans last February.
Louzada was the 35th overall pick in the 2019 NBA Draft. The 23-year-old came to the Blazers while recovering from a torn meniscus. He appeared in seven games last season for the franchise, averaging 5.0 points and 2.1 rebounds in 17.4 minutes.
Waiving Louzada opens a roster spot for the Blazers, leaving the team with 14 players on guaranteed deals for the upcoming season. It remains to be seen whether the Blazers will add another player or if they are simply cutting costs.