Amnesty Contract Buyouts
a) Managers are granted one Contract Buyout per off-season.
b) Managers must pay the league fee by March 1st or they will forfeit their right to Buyout a player’s contract. This is to encourage timely payment of league fees.
c) When a manager Buyouts a contract, the salary penalty for that contract is 25% of the current year’s salary and 10% for each year additional year the player is signed, all taken within the current year. Example: Tony Romo is entering his 2nd year on a 4-year contract at $100 salary. Under a contract buyout the manager pays $25 (25%) for the current year Tony Romo is signed and $10 (10%) for each additional year. The buyout penalty would be a $45, taken from the cap in the year the player was bought out in. If he were cut without the buyout the normal penalty would be $50 for the year he is cut and $50 in year 2 for the remaining two years of the contract.
d) When a player is bought out, he immediately becomes an unrestricted free agent.
e) Managers must use their Buyouts between March 2nd and 48 hours before the start of the annual free agent auction (around Aug. 15th). Unused amnesties will be forfeited.
f) Buyouts are tradable.
g) Replacement owners are granted one additional amnesty if they are taking over a team that finished in the bottom 5 of each conference or at the commissioners discretion based on how bad off the team is. For instance, the commissioner may grant a new owner an additional amnesty when trying to fill an orphan team that is in bad salary cap condition.