OT A question about buyouts

[Rastapopoulos]

Suppose a team really wanted to dump a big contract guy from their books, but he's contracted for at least another year (yes, I was thinking about Batum). If the owner is obscenely wealthy enough, could s/he just say "here's all the money you're owed for the entire length of your contract RIGHT NOW - now go away"? And if so, would that clear cap space? I'm assuming not, because the owners wouldn't want to give advantage to the super-wealthy and/or set a precedent. But when you hear about "buyouts" what's actually happening? Like, did Jeff Green just get what he was owed until the end of the season? Or did he agree to a lower amount? Anyone know?

 

[Minstrel]

Suppose a team really wanted to dump a big contract guy from their books, but he's contracted for at least another year (yes, I was thinking about Batum). If the owner is obscenely wealthy enough, could s/he just say "here's all the money you're owed for the entire length of your contract RIGHT NOW - now go away"? And if so, would that clear cap space? I'm assuming not, because the owners wouldn't want to give advantage to the super-wealthy and/or set a precedent. But when you hear about "buyouts" what's actually happening? Like, did Jeff Green just get what he was owed until the end of the season? Or did he agree to a lower amount? Anyone know?

Buyouts don't clear cap space. They're just designed to save real money. Usually buyouts are structured such that the player doesn't get everything they're owed, but they get some of it right now and are free to sign a new contract elsewhere that they can add to the lump sum. So, theoretically, it's a win for both sides...the player could earn more if he can get a decent new contract in addition to getting a chunk of what their previous team owed them and the team pays out less than they would have otherwise for a player they didn't want to play anyway.

 

[Rastapopoulos]

Buyouts don't clear cap space. They're just designed to save real money. Usually buyouts are structured such that the player doesn't get everything they're owed, but they get some of it right now and are free to sign a new contract elsewhere that they can add to the lump sum. So, theoretically, it's a win for both sides...the player could earn more if he can get a decent new contract in addition to getting a chunk of what their previous team owed them and the team pays out less than they would have otherwise for a player they didn't want to play anyway.

I thought that, but that has the odd implication that there could be "money against the cap" that nobody gets. Fake money.

 

[Minstrel]

I thought that, but that has the odd implication that there could be "money against the cap" that nobody gets. Fake money.

Yup. It's like "dead money" in the NFL (but I think you don't follow American football!). Money that counts against the cap for players no longer on the roster.

 

[Rastapopoulos]

Yup. It's like "dead money" in the NFL (but I think you don't follow American football!). Money that counts against the cap for players no longer on the roster.

There's an American Football??

 

[Minstrel]

There's an American Football??

Portland even has a team!