Item AX C(1)-3.0
The hit against the cap is rounded to the nearest $500,000. Therefore, if it ends up being less than $250,000, the hit to the cap will be zero for that year.
Sub-Section 2- Contract Buyouts
Item AX C(2) 1.0
Money owed to a player released under contract may be financed through a contract buyout. This is done by first releasing the player by using the aforementioned formula (Releasing Players). Then the remaining contract amounts are added together, multiplied by 1.1, and the total is
rounded up to the nearest $0.5m. This amount may be divided up any way you choose as long as the number of years is not more than what it was before AND that no salary owed in any year is more than an amount in a prior year. I will use some current examples to highlight the effects of the buyout and its 10% tax.
Rounding is down for the cap hit and up for the buyout.
| X | Luis Urias | | 3/25 | 2028 | $6.5m | $4.0m | $2.0m | | | | Released Under Contract |
@Brian please confirm assessment with the adjustment:
2m 2026
4m 2027
2028 6.5m