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I find it interesting that the Kings put Richards on waivers on Sunday even though they already knew about this incident. Presumably, they are setting themselves up to still buyout Richards in case the termination doesn't hold up (which may not be determined prior to the end of the buyout period). In the event that the termination is disallowed, I would bet that the Kings would go to the league and say that they should be allowed to buy him out as they had already put him on waivers for the purpose of buying him out. Covering their bases, me thinks.
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I believe it was posted earlier in order to terminate the contract the player must first pass through waivers.