If a player is waived between July 1 and August 31, is the initial year stretched? True or False?

Study for the NBA Agent Exam. Prepare with flashcards and multiple choice questions, each with hints and explanations. Get ready for your exam!

When a player is waived between July 1 and August 31, the terms of the Collective Bargaining Agreement (CBA) dictate that the initial year of the contract is not stretched. This means that the remaining salary for the current contract year remains intact and counts against the team's salary cap in the same manner it would had the player not been waived.

This timeframe is specifically structured in the CBA to ensure that teams are not penalized through a stretched contract for waiving a player early in the offseason. It indicates that teams have the ability to move forward without additional financial burdens associated with stretching the contract, allowing for more flexibility as they manage their rosters and cap space.

In contrast, if a player was waived after this date or under different circumstances, then other CBA stipulations may apply, leading to various effects on cap room and financial implications for the team. The emphasis here is on the timing of the waiver and how it aligns with the rules set forth in the CBA regarding contract structural changes.

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