what does it mean to buy a player out?

[Black Magic]

I've seen that alot recentley and I have no idea what that means.. What does it mean for a team to buy out a player like the cavs wanting to buy out baron davis for example?

[LastChanceToWin]

If the Cavs buy out Baron Davis, they will pay a portion of his contract, and he will end up as a free agent -- who could be picked up by any team in the league.

[BankShot]

Say a player is owed $24 million over the next two years.

The team would offer to pay $22 million (as an example, the actual buy-out depends on negotiations) right now, and release the player. Said player could then sign with another team, get more PT, play in a more favorable environment, and make up the $2 million less with the other team(s).

Saves the original team $2 million in real money and salary cap money, and the player that agrees to be bought out gets what he wants (different team, more PT, chance at a ring)

[Black Magic]

Say a player is owed $24 million over the next two years.

The team would offer to pay $22 million (as an example, the actual buy-out depends on negotiations) right now, and release the player. Said player could then sign with another team, get more PT, play in a more favorable environment, and make up the $2 million less with the other team(s).

Saves the original team $2 million in real money and salary cap money, and the player that agrees to be bought out gets what he wants (different team, more PT, chance at a ring)


thanks alot for both of you two... so let me get this straight the Cavs only would save 2Mill if they bought out Davis?

[Crown&Coke]

depends on what the player and the team negotiate. if it is mutually beneficial to both sides, most times they can't agree so a player just stays put.

[magmo68]

back home to LA he will go...but with a championship in mind:rockon:

[NewYorkNoPicks]

i was always under the impression that buying out a players contract only saves them real money but not anything on the salary cap.

Like if Barons contract has 30 million left and you buy him out for 25, you save 5 million in real money, but the whole 30 (lets assume 15 a year) still counts against the cap. Am i wrong?

[Blue&Orange]

i was always under the impression that buying out a players contract only saves them real money but not anything on the salary cap.

U are correct.

[Scholar]

thanks alot for both of you two... so let me get this straight the Cavs only would save 2Mill if they bought out Davis?

It was just an example, bro.

[flipogb]

thanks alot for both of you two... so let me get this straight the Cavs only would save 2Mill if they bought out Davis?
its up to the player, he can set it as low as he wants or if hes really not serious about it he can try to ask for all of it

[imlmf]

if cavs was going to buy him out, then why trade for him in the first place?

so cavs buy him out for let's say 22 mil, for just 1 year of play and next year he's going to be a free agent? that doesn't make sense to me

[wally_world]

Does the brought-out salary still impact the team's salary cap?

[DeronMillsap]

if cavs was going to buy him out, then why trade for him in the first place?

so cavs buy him out for let's say 22 mil, for just 1 year of play and next year he's going to be a free agent? that doesn't make sense to me
1st round draft pick come with Davis as well.

You have to factor in Mo's contract too, it makes up for some of Davis' contract and so did Moon's 3 million for this season. So the Cavs are actually only losing about $5 million on Davis if he buyouts.

So it was basically a Moon trade for a 2011 1st round pick if you break it down. I think, that's correct.