Buyout Proposal

[Paul Silas]

Buyout Rules & Guidelines

1. Only one buyout per team, per season. That is a calender year.
----Example; Team A comes to a buyout agreement with Player X on May 20th, 2009. That team can not buyout another player until May 20th, 2010.

2. To avoid any shenanigans, a team may not sign a player that they traded prior to that same player receiving a buyout from new team until 6 calender months have gone by.
----Example; Team A trades Player X to Team B. Team B buys Player X out. Team A cannot sign Player X until 6 months after the trade.

3. You can buyout a player at anytime during the year. Meaning, there is no deadline/time line as to when you can negotiate a buyout.

4. You must pay 100% of the players' first year salary, plus 50% of his 2nd year salary, plus 25% of any remaining years of salary for the player.

5. You must have enough cap space in the current year to cover the whole buyout.

Example:

Player X (Full Contract): $7,000,000 | $8,000,000 | $9,000,000 | $10,000,000

Year 1 | 100% = $7,000,000

Year 2 | 50% = $4,000,000

Year 3 | 25% = $2,250,000

Year 4 | 25% = $2,500,000

So, add them all up...

$7,000,000 + $4,000,000 + $2,250,000 + $2,500,000 = $15,750,000

So, that's how much it would cost to buy Player X out. This does NOT mean you need to currently have $15,750,000 in cap space to buy the player out. You get to subtract the players' current salary, since you were already paying that amount to him. You don't want to count that twice. So;

$15,750,000 - $7,000,000 = $8,750,000

You need to have at least an additional $8,750,000 in cap space currently, to buy out a player with this contract.


This may look familiar to some as I stoled it from another league , here is a guideline for buyouts...

Thoughts??

[Paul Silas]

I personally like the idea, NBA has this kind of thing IRL, so why not add it to the league? It can only help those of us that have completely sh!tty contracts on our squad. It gives some flexability to what teams can do.

[Josh Barber]

It is definitely an interesting idea. However, if we do ever introduce buyouts, I think it would have to be on a player by player basis through player agents rather than a set formula.

For example;

Eddy Curry would never accept a buyout that was not for his full salary, while an older player on a bad team might just because he knows he will get another contract

[George Gervin]

Sept 8, 2010 19:12:21 GMT Paul Silas said:

Buyout Rules & Guidelines

1. Only one buyout per team, per season. That is a calender year.
----Example; Team A comes to a buyout agreement with Player X on May 20th, 2009. That team can not buyout another player until May 20th, 2010.

2. To avoid any shenanigans, a team may not sign a player that they traded prior to that same player receiving a buyout from new team until 6 calender months have gone by.
----Example; Team A trades Player X to Team B. Team B buys Player X out. Team A cannot sign Player X until 6 months after the trade.

3. You can buyout a player at anytime during the year. Meaning, there is no deadline/time line as to when you can negotiate a buyout.

4. You must pay 100% of the players' first year salary, plus 50% of his 2nd year salary, plus 25% of any remaining years of salary for the player.

5. You must have enough cap space in the current year to cover the whole buyout.

Example:

Player X (Full Contract): $7,000,000 | $8,000,000 | $9,000,000 | $10,000,000

Year 1 | 100% = $7,000,000

Year 2 | 50% = $4,000,000

Year 3 | 25% = $2,250,000

Year 4 | 25% = $2,500,000

So, add them all up...

$7,000,000 + $4,000,000 + $2,250,000 + $2,500,000 = $15,750,000

So, that's how much it would cost to buy Player X out. This does NOT mean you need to currently have $15,750,000 in cap space to buy the player out. You get to subtract the players' current salary, since you were already paying that amount to him. You don't want to count that twice. So;

$15,750,000 - $7,000,000 = $8,750,000

You need to have at least an additional $8,750,000 in cap space currently, to buy out a player with this contract.


This may look familiar to some as I stoled it from another league , here is a guideline for buyouts...

Thoughts??

I just have one question, these rules apply to teams that HAS cap space, but what about teams that are over the cap already?

[Paul Silas]

IDK George, I guess it's basically for peeps w cap space and not for those who have none. But if you can come up w a viable option for those w no cap...post it!!

[Willis Reed]

Sept 8, 2010 19:12:21 GMT Paul Silas said:

So, that's how much it would cost to buy Player X out. This does NOT mean you need to currently have $15,750,000 in cap space to buy the player out. You get to subtract the players' current salary, since you were already paying that amount to him. You don't want to count that twice. So;

I am pretty sure what you are explaining here is wrong. You don't need any cap space for a buyout. The player's real contract is replaced by the buyout contract. Doing it the way you explained there hurts teams. This is what a team is paying for player x:
7 mil
8 mil
9 mil
10 mil

so he gets bought out... subtract 7 mil for this year and...
7 mil
8 mil + 4 mil = 12 mil
9 mil + 2.25 mil = 11.25 mil
10 mil + 2.5 mil = 12.5 mil

That team just got screwed You don't just take away the current year you take it all away.

There is no cap space needed because the buyout replaces the original and is obviously for less, so player x's contract is now:
7 mil
4 mil
2.25 mil
2.5 mil
and that is also the cap hit, so it saved the team 18.25 mil and player x is a free agent.

[Willis Reed]

Sept 8, 2010 19:20:03 GMT Josh Barber said:

It is definitely an interesting idea. However, if we do ever introduce buyouts, I think it would have to be on a player by player basis through player agents rather than a set formula.

For example;

Eddy Curry would never accept a buyout that was not for his full salary, while an older player on a bad team might just because he knows he will get another contract

Agreed it would have to be done player by player. Eddy Curry, Vlad Rad, Peja Stojakovic and probably many others would never accept a buyout because their next contract would either be nonexistent or for only a few million dollars.

[Paul Silas]

Sept 9, 2010 1:19:58 GMT Willis Reed said:

Sept 8, 2010 19:12:21 GMT Paul Silas said:

So, that's how much it would cost to buy Player X out. This does NOT mean you need to currently have $15,750,000 in cap space to buy the player out. You get to subtract the players' current salary, since you were already paying that amount to him. You don't want to count that twice. So;

I am pretty sure what you are explaining here is wrong. You don't need any cap space for a buyout. The player's real contract is replaced by the buyout contract. Doing it the way you explained there hurts teams. This is what a team is paying for player x:
7 mil
8 mil
9 mil
10 mil

so he gets bought out... subtract 7 mil for this year and...
7 mil
8 mil + 4 mil = 12 mil
9 mil + 2.25 mil = 11.25 mil
10 mil + 2.5 mil = 12.5 mil

That team just got screwed You don't just take away the current year you take it all away.

There is no cap space needed because the buyout replaces the original and is obviously for less, so player x's contract is now:
7 mil
4 mil
2.25 mil
2.5 mil
and that is also the cap hit, so it saved the team 18.25 mil and player x is a free agent.

I copied it from another league...just thought the concept was a good idea...it's not mine I totally plaigerized!! Just throwing out the idea for everyone to mull over and give inputs on how to make it better.