Buying out a contract revisited

[shootingstars]

I just want to make sure I have this correct.

Let's say I have a player who is under contract for $20/yr. If I wanted to buy out said player following his first season I would be liable for $20 against the cap for that upcoming season. Is that correct?

Thanks,

Tim

[happytimefunboy]

Yup a player that is $20 in his second year could be dropped for $20. (Which is 410/year of contract). If he was on his 3rd year then it would be just $10.