RealGM

Hopefully this is a simple question:

Say a player's contract has a $10 mil Early Termination Offer for 2010-11.

The team doesn't want him, and offers him $6 mil in cash in June of 2010 to exercise his ETO.

How much of his salary counts toward the 2010-11 salary cap? Is it still a standard buy-out, or does the player's ability to terminate his contract free the team from the financial obligation?

As for what you mean by this ("Say a player's contract has a $10 mil Early Termination Offer for 2010-11") I have no idea. I'm guessing you mean he has a contract for 2010-11 of $10M, with an ETO to void that year if he wishes. Otherwise, it's nonsenical.

Assuming you meant "he has a contract for 2010-11 of $10M, with an ETO to void that year if he wishes" ....

Once you get to June 2010, the 2010-11 year can be bought out by a negotiated mutual agreement or by a pre-arranged contractual amount if one exists. In either event, in essence the $6M would have to be a buyout of that 2010-11 year, and obviously that $6M will go on their cap for that season.

If a player is bought out just before his last year of his contract for 10 mil, I know the 10 mil counts on the salary cap, but does it count in the luxuray tax calculations ?

realsunsfan wrote:If a player is bought out just before his last year of his contract for 10 mil, I know the 10 mil counts on the salary cap, but does it count in the luxuray tax calculations ?

Yes, Ben Wallace's contract will count as $10M when it comes time to calculate the Suns' luxury tax obligation.