How does Buyout/Waive work for NBA players?

How does Buyout/Waive work for NBA players?

Postby Kobe2clutch on Wed Feb 13, 2008 6:48 pm

Like for us to buyout Luke's contract, we would have to pay him his 35 mil? Would it still be on payroll for the next year if we do that?


I'm asking this because the Nets are planning to buyout stackhouse contract. His contract is 21 million dollars, I don't see why would they buyout him rather than play him?

This is reported on ESPN, but I'm not sure if it will go down.
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Postby OC Lakerfan on Wed Feb 13, 2008 7:16 pm

I'm sure someone will chime in with more details but the player's contract is still on the payroll the following season but that player will not be counted towards the salary cap. Most teams do this to avoid the dollar for dollar Luxury Tax rule.

Some teams negotiate a buyout with the player. It also frees up a roster spot.
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Postby nicehair911 on Wed Feb 13, 2008 7:30 pm

All it does is free up a roster spot. The exact same salary counts towards the cap and you have to pay him as if he was never cut.
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Postby sleepin4matty on Wed Feb 13, 2008 8:46 pm

nicehair911 wrote:All it does is free up a roster spot. The exact same salary counts towards the cap and you have to pay him as if he was never cut.


In the case of Stackhouse, he is not allowed to return to the team that traded him (Dallas) for at least 30 days. I'm not sure if the 30 days is from the point of the trade or the point of the buyout but it is 30 days.
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Postby number8 on Wed Feb 13, 2008 8:54 pm

nicehair911 wrote:All it does is free up a roster spot. The exact same salary counts towards the cap and you have to pay him as if he was never cut.


According to the Salary Cap FAQ only the buyout amount is counted against the team's salary cap for the duration of the original contract, not the original amount in the contract.

See item #60.

Salary Cap FAQ
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Postby venturalakersfan on Wed Feb 13, 2008 9:51 pm

sleepin4matty wrote:
nicehair911 wrote:All it does is free up a roster spot. The exact same salary counts towards the cap and you have to pay him as if he was never cut.


In the case of Stackhouse, he is not allowed to return to the team that traded him (Dallas) for at least 30 days. I'm not sure if the 30 days is from the point of the trade or the point of the buyout but it is 30 days.


It is 30 days from the date he clears waivers, I believe.
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