What's a 35-plus contract
Players who sign multi-year contracts when they are age 35 or older (calculated on June 30 of the season the contract begins) count toward the cap under all circumstances, regardless of where (or if) the player is playing. The only cap relief is $100,000 from the player's cap hit if he is assigned to the minors after the first year of the contract or in the event of a buyout.
The league confirmed to CapGeek.com in March 2013 that the over-35 rule "doesn't apply either in the case of regular buyouts or in the case of compliance buyouts," meaning teams can use buyouts to reduce or eliminate the cap hit. Prior to the league's clarification, CapGeek.com had operated with inaccurate information in estimating its cap totals. (See also: How do buyouts work?)
CBA reference: Section 50.5 (d-i-B-5) (P. 203)