In our Complete Guide to the NBA Market, we discussed the topic of the Buyout, which we will explore in detail in this article.
What is a Buyout?
A Buyout is a mutual separation between a team and a player who still has a valid contract. Both parties agree on the terms of the break, both practically and financially, before ending the relationship permanently.
How does a Buyout work?
A Buyout is a market tactic that doesn’t make either party happy: the player will only receive a portion of their contracted salary, and the team will keep that salary on the books, which will count against the Salary Cap.
Essentially, the team and the player agree on a severance package in exchange for the player’s ability to sign with new contractual terms with a different team.
This is the case of John Wall, who received a Buyout from the Houston Rockets, giving up a significant portion of his earnings in order to sign a new contract with the Los Angeles Clippers.
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Author: Team Dunkest
December 24, 2024 | 3:45 am
