66. What is a contract buyout?
Sometimes players and teams decide to divorce each other. They do this by mutually agreeing that:
- The team will waive the player
- If the player clears waivers, the player's guaranteed salary will be reduced or eliminated (see question number 63)
- Optionally the team's set-off rights (see question number 65) may be waived
After the player clears waivers, he and his former team are free to go their separate ways. There is a quid-pro-quo between the player and team regarding contractual obligation and salary -- in exchange for gaining his freedom, the player agrees to give the team a break on the remaining salary he is owed.