The NBA Buyout Market Explained
The buyout market is the NBA's second free agency period. After the trade deadline passes in February, players on losing teams who weren't traded can negotiate buyouts -- agreements where the team releases the player and they forgo part of their remaining salary. The player then becomes a free agent and typically signs with a contender for the veteran minimum.
This creates a fascinating dynamic where contenders add experienced players for minimal cost. The Lakers, Nets, and other big-market contenders frequently benefit. Related: Waiver Wire, Salary Cap, and 10-Day Contracts.
Frequently Asked Questions
What is a buyout?
A buyout is a negotiation where a player and team agree to terminate the contract early. The player typically gives back a portion of their remaining salary in exchange for becoming a free agent.
When do buyouts happen?
Most buyouts occur shortly after the NBA trade deadline in February. Players must be waived by a certain date to be playoff-eligible with their new team.
Why would a player take less money?
Players accept buyouts to join contending teams and compete for championships. The reduction in salary is the price of choosing your own destination rather than being stuck on a losing team.
Do buyout players help in the playoffs?
Results are mixed. Some buyout additions have been key championship contributors (Markieff Morris, 2020 Lakers), while others have had minimal playoff impact.