ELI5, what does buy out mean in Esports?

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I’ve been hearing this in a lot of Esports pro teams but can’t really understand how they work, tried google but to no avail. Like what happends if you buy out a player? Who gets the money? Who is paying?

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Anonymous 0 Comments

Let’s say I hire you to play Fortnite and I will pay you $20,000 a year for 3 years.

You suck so I want to stop paying you. Or I suck so you want to play for someone else.

Most contracts have a buy out clause to allow this to happen.

In this example. Maybe I can pay $30,000 all at once and kick you out of my team.

Or maybe you or your new potential team can pay me $20,000 and I’ll release you before the 3 years are up.

Essentially it’s ended the contract by someone else buying the contract.

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