Haywood's $8.3 million salary this season and $27.2 million overall will be wiped off the books, however he will still be owed the full amount left on the next three years of his contract. Haywood will now enter the amnesty bidding process. Teams under the cap will have first shot to bid for him. The team with the winning bid will pay that amount of Haywood's annual salary with the Mavs responsible for the balance.
If there are no bids, Haywood will become a free agent and can sign with any team. In that case, Dallas would be on the hook for the full amount -- but again, with no consequence to the salary cap or luxury tax -- to be paid over a number of years courtesy of a "stretch provision" in Haywood's contract.
By amnestying Haywood, the Mavs move under the salary cap, enabling what has been called an "aggressive" bid for amnestied Philadelphia 76ers power forward Elton Brand. Dallas signed center Chris Kaman on Wednesday to a one-year contract for $8 million.
For more on Haywood's up-and-down run with the Mavs, click here.