Buy-outs

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NYG
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Buy-outs 

Post#1 » by NYG » Sat Aug 12, 2017 3:54 pm

Is there a minimum requirement in a buy out? For exaggerated example, if the Bulls bought out Wade, if he agreed to gets $0 in 2017-18 to void his contract with the Bulls is that legal?

Is there a waiver process for bought out players?

What is the specific rules on buy outs?
HartfordWhalers
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Re: Buy-outs 

Post#2 » by HartfordWhalers » Sat Aug 12, 2017 6:31 pm

NYG wrote:Is there a minimum requirement in a buy out? For exaggerated example, if the Bulls bought out Wade, if he agreed to gets $0 in 2017-18 to void his contract with the Bulls is that legal?

Is there a waiver process for bought out players?

What is the specific rules on buy outs?


Bought out players are waived through the normal process, and must clear waivers on their original contracts.

The buyout is an agreement about what happens to a player if they clear waivers. There is no problem with any and all unearned money being agreed to go anywhere between 0 and 100% paid.
DBoys
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Re: Buy-outs 

Post#3 » by DBoys » Sat Aug 12, 2017 11:12 pm

To add to that ...

*There is no such thing in the CBA as a "buyout."
*What is termed a "buyout" by media is actually just a negotiated modification to the "guarantee" provision in a contract.
*The guarantee part of the contract is one of the few parts of an NBA contract that can be altered at a later date by mutual consent.
*As HW noted, they will say if X happens (in these cases, the if the player clears waivers, typically tied to doing so by such-and-such date), then the guaranteed amount changes in the following way.
*Because it's a change to an already-executed contract, it requires the full & signed agreement of both player and team.

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