Why are players who were released still counting agaist a teams payroll?
According to See Article XXIII, Section C.2.E.ii of the Basic Agreement, players on guaranteed multi-year contracts who are released from their contracts will still continue to count against a team’s payroll for luxury tax purposes according to the original structure of the contract – even if the team pays out the contract up front. This would not apply if the club was no longer obligated to pay out the original contract (i.e., when a contract is voided or forfeited).
