Since the news of Andre Drummond and Brooklyn Nets having mutual interest in each other broke, basketball fans have been curious to know as to what a "Buyout" in the NBA means. The NBA trade deadline is fast approaching, and it is post that all the buyout deals are done. On that note, we will dwell deeper into answering the question- What is a buyout in the NBA?
Explaining what a buyout is in the NBA
A buyout occurs when a player and team mutually decide to part ways. The player surrenders an agreed-upon amount of his guaranteed salary, and in exchange, is released and allowed to sign with any other team as a free agent.
If a team buys a player out, he cannot re-sign with or be claimed off of waivers by that team for one year or until the end of the contract that was bought out, whichever comes later.
To understand it more clearly with an example, if Andre Drummond and Cleveland Cavaliers mutually agree to end his stint with them, then the Cavs will have to pay a part of his $28 million salary and then his contract will be dead and he will be a free agent. In that case, he will be able to join the Brooklyn Nets.
This will be beneficial to both the parties involved, as the Cavaliers will be able to cut a player who they don't want for only a part of his salary. Drummond on the other hand, gets something out of his Cleveland contract and is still able to play on a team that he wants.
When do Buyouts usually happen?
A buyout usually happens in the NBA in the following circumstances-
#1- When teams take on players in a trade that don’t factor into their short- or long-term future. Usually, this is when a veteran joins a lottery team
#2- When a team that acquired a vet earlier in an attempt to compete performs below expectations
#3- When teams don’t find a trade at the deadline for a player that wants out.
Usually, the player/team is motivated either by a desire to compete for a championship or a chance to play more minutes on a roster that better suits them in an effort to increase their value as a free agent in the offseason.