What does the term "contract buyout" refer to in relation to the salary cap?

The term "contract buyout" specifically refers to the process by which a team terminates a player's contract while still agreeing to pay a portion of the player's remaining salary. This arrangement is often utilized to create salary cap space and to allow the team to move on from a player who may no longer fit their plans or whose performance does not justify the contract terms.

In a buyout, the team and the player agree on a settlement that allows the player to become a free agent, often resulting in the player receiving a lump-sum payment of the remaining salary rather than continuing to be paid in full over the duration of the contract. The cap hit for the team is also adjusted, frequently spreading the remaining salary over the years left on the contract or allowing for a lower cap hit when the player signs elsewhere.

None of the other options accurately capture the definition of a contract buyout within the context of salary cap management. Signing players from other teams relates to free agency, extending a player's contract involves renegotiation rather than termination, and offering minimum salary pertains to player contracts but does not align with the concept of a buyout.