NBA Agent Practice Exam 2025 – Complete Test Prep Guide

When a player who has cleared waivers is signed by another team, the player's original team is no longer responsible for the salary owed to that player, as they have effectively removed themselves from any commitment to that contract. This situation allows the original team to lower its overall team salary as it no longer has to count that player's contract against its salary cap.

When a player is claimed off waivers, the new team assumes the player's contract terms, meaning the original team can indeed reduce their payroll obligations. Thus, the correct response highlights the financial flexibility provided to the original team once the player moves on to a different team.

The other options do not accurately describe the process. For example, increasing the contract amount owed is not possible once a player clears waivers and is picked up by another team. Likewise, trading a player who has cleared waivers typically becomes more complicated, as the original team has already relinquished rights and control over that player's contract. Finally, signing the player to a new contract is not an option, as the original team does not hold the rights to that player any longer.