Buyout FAQ

Last modified: February 16, 2018 at 9:58 am

What is a buyout?

Teams are can buy out a player’s contract in order to create a reduced cap hit over a period of twice the remaining length of the contract. The buyout amount is a function of the players age at the time of the buyout.

  • If the player is younger than 26 at the time of the buyout it is 1/3 of the remaining contract value.
  • If the player is 26 or older at the time of the buyout it is 2/3 of the remaining contract value,

How are buyouts calculated?

The buyout is spread out over a period of twice the remaining length of the contract. The cap hit is calculated by…

  1. Multiply the remaining salary (excluding signing bonuses) by the buyout amount (as determined by age) for the total buyout cost.
  2. Spread the total buyout cost evenly over twice the remaining contract years.

When is the buyout period?

The buyout period begins the later of June 15 or 48 hours after the Stanley Cup Final ends. It concludes on June 30 at 5 pm EST. A player can only be bought out after clearing unconditional waivers. If a player is claimed on waivers, the buyout process is ended. A player with a no-movement clause may veto going to waivers, thus ending the buyout process.