Post by Oklahoma City Thunder on Jan 30, 2010 18:40:06 GMT -5
Buyout Rules & Guidelines
1. Only one buyout per team, per season. That is a calender year.
----Example; Team A comes to a buyout agreement with Player X on May 20th, 2009. That team can not buyout another player until May 20th, 2010.
2. To avoid any shenanigans, a team may not sign a player that they traded prior to that same player receiving a buyout from new team until 6 calender months have gone by.
----Example; Team A trades Player X to Team B. Team B buys Player X out. Team A cannot sign Player X until 6 months after the trade.
3. You can buyout a player at anytime during the year. Meaning, there is no deadline/time line as to when you can negotiate a buyout.
4. You must pay 100% of the players' first year salary, plus 50% of his 2nd year salary, plus 25% of any remaining years of salary for the player.
5. You must have enough cap space in the current year to cover the whole buyout.
Example:
Player X (Full Contract): $7,000,000 | $8,000,000 | $9,000,000 | $10,000,000
Year 1 | 100% = $7,000,000
Year 2 | 50% = $4,000,000
Year 3 | 25% = $2,250,000
Year 4 | 25% = $2,500,000
So, add them all up...
$7,000,000 + $4,000,000 + $2,250,000 + $2,500,000 = $15,750,000
So, that's how much it would cost to buy Player X out. This does NOT mean you need to currently have $15,750,000 in cap space to buy the player out. You get to subtract the players' current salary, since you were already paying that amount to him. You don't want to count that twice. So;
$15,750,000 - $7,000,000 = $8,750,000
You need to have at least an additional $8,750,000 in cap space currently, to buy out a player with this contract.
1. Only one buyout per team, per season. That is a calender year.
----Example; Team A comes to a buyout agreement with Player X on May 20th, 2009. That team can not buyout another player until May 20th, 2010.
2. To avoid any shenanigans, a team may not sign a player that they traded prior to that same player receiving a buyout from new team until 6 calender months have gone by.
----Example; Team A trades Player X to Team B. Team B buys Player X out. Team A cannot sign Player X until 6 months after the trade.
3. You can buyout a player at anytime during the year. Meaning, there is no deadline/time line as to when you can negotiate a buyout.
4. You must pay 100% of the players' first year salary, plus 50% of his 2nd year salary, plus 25% of any remaining years of salary for the player.
5. You must have enough cap space in the current year to cover the whole buyout.
Example:
Player X (Full Contract): $7,000,000 | $8,000,000 | $9,000,000 | $10,000,000
Year 1 | 100% = $7,000,000
Year 2 | 50% = $4,000,000
Year 3 | 25% = $2,250,000
Year 4 | 25% = $2,500,000
So, add them all up...
$7,000,000 + $4,000,000 + $2,250,000 + $2,500,000 = $15,750,000
So, that's how much it would cost to buy Player X out. This does NOT mean you need to currently have $15,750,000 in cap space to buy the player out. You get to subtract the players' current salary, since you were already paying that amount to him. You don't want to count that twice. So;
$15,750,000 - $7,000,000 = $8,750,000
You need to have at least an additional $8,750,000 in cap space currently, to buy out a player with this contract.
