The NBA trade deadline, which concluded on February 6th, 2025, often marks a significant shift in team compositions as franchises jockey for playoff positioning or begin to reshape for the future. However, the roster maneuvering doesn’t always end there. Lurking in the aftermath of the deadline is the intriguing and often impactful NBA buyout market. This unique mechanism allows veteran players on teams going nowhere to seek opportunities with playoff contenders, adding a layer of unpredictability and excitement to the second half of the season.
The Strategic Importance of the Buyout Market
The buyout market holds significant strategic value for several types of NBA teams:
Playoff Contenders: These teams often utilize the buyout market to address specific weaknesses or add veteran depth for a postseason push. They might be looking for additional shooting, rebounding, defense, or simply experienced players who can contribute in crucial moments.
Teams on the Cusp of the Playoffs: Similar to contenders, these teams might see the buyout market as an opportunity to acquire a player who can elevate their performance and secure a playoff berth.
Rebuilding Teams: While less directly involved in signing bought-out players, rebuilding teams might initiate buyouts with veterans who don’t fit their long-term plans, opening up roster spots for younger players and potentially gaining some financial flexibility.
For the players involved, a buyout can be a lifeline. It allows them to escape a situation where they might be playing limited minutes on a non-competitive team and instead join a franchise with championship aspirations, increasing their visibility and potential for playoff success.
The Buyout Deadline: A Crucial Date
A critical date to remember in the context of the buyout market is March 1st. According to NBA rules, a player must be waived by their previous team on or before March 1st to be eligible to sign with a new team and participate in the playoffs for that new team in the same season. This deadline creates a flurry of activity in the days leading up to it, as teams and players assess their options and make decisions. Players bought out after March 1st can still sign with other teams but will not be eligible for their playoff rosters.
Impact of the New CBA on the Buyout Market
The new Collective Bargaining Agreement (CBA), agreed upon in 2023, has introduced some significant restrictions on which teams can sign players from the buyout market. These rules aim to level the playing field and prevent the league’s highest-spending teams from simply adding high-caliber talent after the trade deadline.
Specifically, teams whose salary is above either the first or second tax apron are prohibited from signing a free agent on the buyout market if that player’s pre-waiver salary exceeded the non-taxpayer mid-level exception (MLE). For the 2024-25 season, the first tax apron is $178.132 million, and the non-taxpayer MLE is $12,822,000. This means that teams like the Boston Celtics, Denver Nuggets, Los Angeles Lakers, Milwaukee Bucks, Minnesota Timberwolves, New York Knicks, and Phoenix Suns (all above the first apron as of early April 2025) cannot sign a player who was bought out if their previous salary was higher than $12,822,000.
This restriction has significantly altered the landscape of the buyout market. In previous years, luxury tax-paying contenders could often swoop in and sign high-profile veterans who received buyouts. Now, these teams are limited to players who were on relatively smaller contracts with their previous teams. This creates more opportunities for teams below the tax aprons to compete for available talent.
Recent Buyout Market Activity and Potential Targets (Early April 2025)
The period following the trade deadline on February 6th, 2025, has seen considerable activity in the buyout market. Several notable players have been bought out and found new homes with playoff-contending teams:
Ben Simmons (Brooklyn Nets to Los Angeles Clippers): Despite his high previous salary, Simmons agreed to a significant reduction to join the Clippers, who were under the first tax apron. His all-around game and defensive versatility were appealing to a team looking for an additional playmaker and defender.
Alex Len (Washington Wizards to Los Angeles Lakers): The veteran center provided much-needed size and rebounding for the Lakers, who were seeking frontcourt depth. His previous salary was below the MLE threshold, making him eligible for the Lakers to sign despite being a tax-paying team.
Torrey Craig (Chicago Bulls to Boston Celtics): Craig’s reputation as a solid wing defender and capable three-point shooter made him a valuable addition to the Celtics’ already strong roster. His previous contract also fell within the MLE limitations.
Bones Hyland (Atlanta Hawks to Minnesota Timberwolves): After being surprisingly waived by the Hawks shortly after being traded, Hyland signed a two-way contract with the Timberwolves, providing them with additional guard depth and scoring potential. His previous salary was below the MLE.
P.J. Tucker (Toronto Raptors to New York Knicks): The veteran forward, known for his toughness and defensive prowess, was waived by the rebuilding Raptors and signed multiple 10-day contracts with the Knicks, who were looking for experienced players for a potential playoff run.
Beyond those who have already signed, several other players were considered potential buyout candidates leading up to the March 1st deadline:
Kyle Anderson (Miami Heat): A versatile forward with playmaking skills, Anderson remained with the Heat.
Sidy Cissoko (Washington Wizards): A young player gaining experience, Cissoko stayed with the Wizards.
Tre Jones (Chicago Bulls): A developing point guard, Jones remained with the Bulls.
Maxi Kleber (Los Angeles Lakers): Despite some speculation, the veteran forward stayed with the Lakers.
Khris Middleton (Washington Wizards): A seasoned veteran, Middleton remained with the Wizards.
Markieff Morris (Los Angeles Lakers): The veteran forward did not secure a buyout and remained a free agent.
Cam Reddish (Charlotte Hornets): The athletic wing player stayed with the Hornets.
Dennis Schröder (Utah Jazz): The experienced point guard remained with the Jazz.
Delon Wright (New York Knicks): Wright stayed with the Knicks.
It’s important to note that the buyout market can be fluid, and situations can change quickly. Players who were initially not considered buyout candidates might become available, and teams’ needs can evolve as the season progresses.
How Buyouts Work in Practice: A Closer Look
Let’s delve deeper into the mechanics of a buyout using a hypothetical example:
Imagine veteran forward Kevin Knox is playing for the Orlando Magic, a team clearly not in playoff contention in early 2025. Knox has two years remaining on his contract, earning $15 million this season and $16 million the next. Knox desires to play for a contender and approaches the Magic about a potential buyout.
The Magic are willing to accommodate Knox to open up a roster spot for a younger player they want to develop. Negotiations begin regarding the financial terms of the buyout. Knox might agree to forfeit a portion of his remaining salary. For instance, he might agree to give back $4 million of the $15 million owed to him this season. This means the Magic would pay Knox $11 million this season, and he would become a free agent. The $11 million paid to Knox would still count against the Magic’s salary cap this season.
Once the buyout agreement is finalized, the Magic waive Knox. He then goes through the 48-hour waiver period. If a team claims him, they would be responsible for the remaining portion of his agreed-upon salary ($0 in this season’s case, as he was bought out). However, if he clears waivers, he becomes an unrestricted free agent.
Now, Knox is free to sign with any team that has an open roster spot and the ability to sign him under the league’s salary cap rules. Because his pre-waiver salary ($15 million) was above the non-taxpayer MLE ($12.822 million), teams above the first tax apron (like the Lakers, Celtics, etc.) would not be able to sign him. However, teams below that threshold could offer him a contract, typically for the veteran minimum or a portion of their available salary cap space.
Knox, eager to join a contender, might sign with the Dallas Mavericks for the veteran minimum for the remainder of the season. In this scenario:
Kevin Knox: Gets to play for a playoff-caliber team. He receives $11 million from the Magic and the veteran minimum from the Mavericks, totaling less than his original $15 million salary but achieving his goal of playing in a competitive environment.
Orlando Magic: Open up a roster spot and save $4 million in salary this season (though they still have an $11 million cap hit for Knox). They also don’t have Knox on their roster for the following season.
Dallas Mavericks: Add a veteran forward to their roster at a minimal cost (veteran minimum salary).
The Psychology of the Buyout Market
Beyond the financial and strategic aspects, there’s also a significant psychological element to the buyout market. For players, it’s often about reclaiming agency over their careers and seeking a situation where they feel valued and have a chance to win. For teams, it’s a delicate balance between cutting ties with a player who might still have some value and the potential rewards of adding a motivated veteran who can contribute to a playoff push. The narratives surrounding bought-out players often generate fan interest, with debates about whether a particular acquisition will be the missing piece for a contender.
FAQs
What is the NBA buyout market?
The NBA buyout market refers to the period following the trade deadline when teams and players negotiate contract buyouts. In a buyout, a team agrees to release a player from their contract, often for less than the remaining salary owed. This allows the player to become a free agent and sign with another team. Teams typically pursue buyouts to gain financial flexibility or open roster spots, while players seek opportunities with other teams, often contenders.
How does a contract buyout work in the NBA?
In a contract buyout, both the team and the player agree to part ways before the contract’s natural end. The player usually agrees to forfeit a portion of the remaining salary. Once the buyout is finalized, the player is waived and, after clearing waivers, becomes an unrestricted free agent eligible to sign with any team.
Why do NBA teams offer buyouts to players?
Teams offer buyouts to gain roster and financial flexibility. This can involve creating space for new acquisitions, reducing luxury tax liabilities, or allowing veterans to join playoff contenders where they might have a more significant role.
What are the key dates and deadlines in the NBA buyout market?
The primary deadline is March 1. Players must be waived by this date to be eligible to participate in the playoffs with a new team. While buyout agreements can occur after March 1, players waived post-deadline are ineligible for postseason play with another team.
How have recent changes to the Collective Bargaining Agreement (CBA) affected the buyout market?
The 2023 CBA introduced restrictions on teams above the first or second tax apron, preventing them from signing players who were earning more than the non-taxpayer mid-level exception before their buyout. This change aims to maintain competitive balance by limiting high-spending teams from adding significant talent through the buyout market.
Which players are typically involved in the buyout market?
Veteran players on non-contending teams or those with reduced roles are common buyout candidates. For instance, in the 2025 season, players like Marvin Bagley III, Seth Curry, and Patty Mills were considered potential buyout candidates due to their situations and team dynamics.
What impact does the buyout market have on playoff contenders?
Playoff-bound teams often use the buyout market to add experienced players who can provide depth, leadership, and specific skill sets. These additions can be crucial for bolstering a team’s roster for a deep playoff run.
Are there any restrictions on players returning to their original teams after a buyout?
Yes, the NBA has rules to prevent teams from trading a player and then re-signing them shortly after a buyout. Typically, a player cannot re-sign with the team that traded them until after a certain period or until the following season, ensuring the integrity of roster moves.
How do buyouts affect a team’s salary cap and luxury tax?
The salary agreed upon in the buyout still counts against the team’s salary cap. However, by reducing the amount owed through a buyout, teams can lower their financial commitments and potentially decrease luxury tax penalties.
Can players sign with any team after a buyout?
Generally, once a player clears waivers after a buyout, they can sign with any team. However, recent CBA changes restrict high-spending teams from signing certain bought-out players, particularly those who had high salaries before the buyout.
To conclude
The NBA buyout market serves as a strategic avenue for both teams and players to realign their objectives mid-season. Teams leverage buyouts to manage their rosters and finances effectively, while players seek opportunities that better fit their career goals, often aiming for roles on playoff-contending teams. Understanding the mechanics of buyouts, including key dates like the March 1 waiver deadline and the implications of recent CBA changes, is crucial for comprehending how these moves impact team dynamics and the broader competitive landscape of the league. As the NBA continues to evolve, the buyout market remains a significant element in shaping the composition and success of teams during the critical stages of the season.
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