Contract Buyouts/Guaranteed money

[Mamba4Goat]

So first question, how do buyouts work? Like what is the earliest your team can buy out a contract (Can my team say, sign someone to a 4 year contract then turn around and buy it out the following year)? And when does it come off the salary cap/how does it affect it? Also, why does it usually take so long for negotiations? (Raja Bell and Hedo for example took months and months for theirs to get done?)

Secondly, what's the usual amount guaranteed on contracts, and is their a site that shows stuff like that?

Sorry if these questions are dumb or anything. I've got a relatively low knowledge about the deeper details about contracts and thought I'd try and get a better understanding about some things.

[DBoys]

So first question, how do buyouts work? Like what is the earliest your team can buy out a contract (Can my team say, sign someone to a 4 year contract then turn around and buy it out the following year)? And when does it come off the salary cap/how does it affect it? Also, why does it usually take so long for negotiations? (Raja Bell and Hedo for example took months and months for theirs to get done?)

Secondly, what's the usual amount guaranteed on contracts, and is their a site that shows stuff like that?

Sorry if these questions are dumb or anything. I've got a relatively low knowledge about the deeper details about contracts and thought I'd try and get a better understanding about some things.

http://www.cbafaq.com/salarycap.htm

See 65 and 66

[DBoys]

For a site that lists NBA contracts with the details like how much is guaranteed, see
http://data.shamsports.com/content/page ... /index.jsp

[MarkDeeks]

(Can my team say, sign someone to a 4 year contract then turn around and buy it out the following year)?

Can buy it out the following morning if they like. Understand what a buyout is, though. A buyout isn't just a waiving - a buyout is a colloquial term for a waiving that is accompanied by an agreement to lower the amount of outstanding money. You can cut anybody you like at any time, but a buyout is a mutual agreement, and it takes two to twerk.

And when does it come off the salary cap/how does it affect it?

Whatever the amount you agree to pay after the buyout is the amount charged to the cap. So if a player is owed $10 million, and they agree to buy him out for 80% of it, then $8 million is charged to the cap.

Also, why does it usually take so long for negotiations?

The player has to have some incentive to give up money. If they don't give up money, it's not a buyout. And if they don't give up money, the team has no incentive to waive them - they're stuck with paying the guy anyway, so they may as well keep him.

Secondly, what's the usual amount guaranteed on contracts

100%

and is their a site that shows stuff like that?

http://data.shamsports.com/content/page ... /index.jsp

[Mamba4Goat]

Perfect. Thanks guys!

[Mamba4Goat]

Alright, another question. So let's say player A wanted to stay with his team and compete for a title, and is owed $10 mil this year, and they wanted to amnesty him and sign player B to a $10mil contract instead, could he agree to a buyout with no compensation, then sign a vet min with the team after they sign player B?

[DBoys]

Alright, another question. So let's say player A wanted to stay with his team and compete for a title, and is owed $10 mil this year, and they wanted to amnesty him and sign player B to a $10mil contract instead, could he agree to a buyout with no compensation, then sign a vet min with the team after they sign player B?

Yes, that's allowed (assuming the team had 10M of cap room to sign player B). It's only theory, of course, since no player would ever consider it (nor would any team propose it because it would be so insulting).