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Post by Oklahoma City Thunder on Jul 23, 2009 9:55:40 GMT -5
If you would like to buy out a player, these are the rules.
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.
You must have enough cap space in the current year to cover the whole buyout.
Example:
Player A: $7,000,000 | $8,000,000 | $9,000,000 | $10,000,000
I have player A, and now I've decided he is really not worth this contract, and is a bum, I hate him on my team, and I must get rid of him! (or whatever reason you may have). Let's figure out how much it costs to buy him out.
100% of year 1 = $7,000,000 plus 50% of year 2 ($8,000,000 x .5) = $4,000,000 plus 10% of year 3 ($9,000,000 x .25) = $2,250,000 plus 10% of year 4 ($10,000,000 x .25) = $2,500,000
So, add them all up...
$7,000,000 + $4,000,000 + $2,250,000 + $2,500,000
and you get
$15,750,000
So, that's how much it would cost me to buy that player 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. Get it?
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.
I hope this was in detail enough for everyone, and that it is clearly understood.
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