Contract Buyout - Rule Update

[EastCoastGonzo]

There have been a number of questions about buyouts for new and existing owners, we tried to make the rule more clear and address the specific questions of retired players. The update is below.

https://docs.google.com/document/d/1x9be8L0dEbEELy34LgkKa723GktQbIzJ2eNmdsEy6Ys/edit




Contract Buy-Out - New Managers
All New Managers, upon admission to the league, will have the option to "buy-out" one existing contract on their team.  The manager must post the selected contract and desired option in the transaction page within 2 weeks of admission.

There are three options to buy out a contract:
Option 1: Team pays 25% of the remaining contract during the following season.
Option 2: Team pays 40% of the remaining contract, spread over the following 2 seasons.
Option 3: Team pays 50% of the remaining contract, spread over the following 3 seasons.

For example:

Player has 4 years and $100 Million remaining on his contract. Manager decides to buy-out the contract.

Option 1: Team pays $25 Million in upcoming season.
Option 2: Team pays $20 Million in upcoming season and $20 Million in the following season.
Option 3: Team pays $16.67 Million in upcoming season, $16.67 in following season, and $16.67 in the season following that.


Contract Buy-out

Contract for a player may be bought out at full guaranteed value, but can be paid in lump sum in 1 year or spread out at GM's discretion among remaining years, making them a FA.

Contract for an officially retired player may be bought out at 75% of its guaranteed value, but can be paid in a lump sum in 1 year or spread out at GM's discretion among remaining years. To complete a retirement buyout the player must have officially retired, and the posting must be accompanied by a reputable source stating so.

For example:

Bobby Bonilla $5.0M (2020 - 2025)
 
Buyout:

Total buyout is $25M (5 years x $5M/yr).  GM may pay full 25m in any single season, or any sort of combination among years remaining.

Retire:

Total buyout is $25M (5 years x $5M/yr) minus 25%, so $20M total.  GM may pay full 20m in any single season, or any sort of combination among years remaining.

Generally:

The buyout may be spread at the GM's discretion with the smallest amount per year being $500k.

Example:
2020 500k
2021 3.5M
2022 4M
2023 4M
2024 4M
2025 4M

Keep in mind, a player on an expiring deal is simply going to open a roster spot but have full cap hit count in the given season.