What is the difference between set off and stretch?

The distinction lies in the mechanics and implications of the two terms "set off" and "stretch" within the context of sports contracts, particularly in the NBA.

Set off typically refers to a situation where a team can reduce or offset the financial obligations it has to a player if that player signs with another team. This can be crucial for teams managing their salary cap and ensuring they stay within budget while potentially allowing them to reclaim some of the financial resources owed to the player if they move on to another franchise.

In contrast, the stretch provision allows a team to extend the payment period for a player's salary after they have been waived. Instead of paying a lump sum, the team can spread the financial obligation over a longer duration, which can offer much-needed cap relief and flexibility when managing their payroll.

Understanding this differentiation is key for grasping how teams maneuver within the financial constraints of the league, particularly when dealing with player contracts and salary cap management. The other options do not accurately reflect the meanings of set off and stretch in this context.