<P> Compliance buyouts (sometimes referred to as amnesty buyouts) allow National Hockey League (NHL) teams to buy - out a player's contract by paying him two - thirds of the remaining value of a contract over twice the remaining length of the contract . If the player is under 26 years old, then the team may pay the player just one - third of the remaining contract value . In ordinary - course buyouts, the team's NHL salary cap hit for the player is stretched over a period of twice the remaining length of the contract . Compliance buyouts follow the same formula as ordinary - course buyouts but do not count against the cap . </P> <P> Due to the 2012--13 NHL lockout, the salary cap was not to increase to the projected $70.2 million, so each team was therefore granted two compliance buyouts to be exercised after the 2012--13 season and / or after the 2013--14 season that would not count against the salary cap in any further year in order to better comply with a lower than expected cap value, regardless of the player's age . After using an compliance buyout on a player, that player is prohibited from rejoining the team that bought him out for one year; the NHL deemed that the re-signing of a player following a trade and a subsequent compliance buyout would be ruled as cap circumvention . </P>

What does it mean to buy out a player in nhl
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