How doe a Buyout affect cap space?

[MagicFanCincy]

Nets bought out Dwight; OKC might buy out Melo, thus leaving bargain-priced vets for contending teams.

Certainly, you can't buy out a contract to clear cap space can you? Perhaps there's a money savings but the contract figures before the buyout have to count against your cape space, do they not?

Who can explain?

[Driguez]

I believe, but could be completely wrong, that player/team come to an agreement on the buyout amount and the player is essentially waived so his numbers won't (I think) count towards the cap.

[vip3r]

I am sure someone can answer this better than me, but I believe the way it works is the buyout amount agreed on is what counts against the cap assuming they clear waivers. So if a player is owed say 10 million and they agree to take 7 million buyout. Then 7 million counts against cap.

[Xatticus]

If the contract is guaranteed, so is the cap hit. If OKC buys out Anthony, it won't benefit their cap situation at all. They could potentially use the stretch provision, but that only spreads the current contract obligation over future seasons.