Here is how the Amnesty worked under the previous CBA.
69. What is the Amnesty provision? (2011 CBA FAQ)
In order to submit a bid for a partial waiver claim, the bidding team must have cap room equivalent to the portion of their bid that would be charged to team salary in that season, plus the amount of any likely bonuses (see question number 74) for that season. If necessary, teams can create this cap room by waiving non-guaranteed players, but not by making trades. The team must make the cap room available immediately upon being awarded the amnesty claim.
I would expect the Players Association to push for as much freedom as possible with a new Amnesty provision while the owners are going to want to be as frugal as possible and want a claiming/bidding process as was in the 2011 CBA.
Here is an example from the past when the Lakers "won" Boozer after Chicago used the Amnesty provision on him.
Reports: Lakers win Carlos Boozer amnesty waiver bid Lakers pick up veteran big man after he was waived by the BullsMultiple outlets report that the Lakers have won the amnesty auction for Carlos Boozer, who was waived by the Bulls using the amnesty provision. That means the Lakers outbid other teams for Boozer's services.
It's a cheap option, though, and it gives Kobe Bryant a big he won't want to punch in the face three times a game. ESPN reports that it's a $3.2 million winning bid for the last year of his contract.
Marc Stein
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@TheSteinLine
That means Lakers acquire Boozer's expiring contract and Chicago is on the hook for the rest of Boozer's salary in 2014-15: $13.6 million
I am not sure that OKC will use amnesty on Chris Paul. If they do, the expectation is that he would want to go to LA to be with his friend LeBron. Because of existing contracts and the cap hold for Davis, the Lakers will be limited on how much they can bid if Chris Paul is amnestied by OKC. For the Knicks or another team to beat the offer from the Lakers, determine the best bid/offer that LAL can make and then bid a little higher.