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I think it's pretty much at the whim of the owner what the budget for each year is. I can't confirm even cash carries over to the next year - if your owner feels like buying a new yacht instead this year, that's what he's going to do. I've had long streaks of seasons where I earned 25+ million profits every year, but that didn't result in budget increases.
First I'd try and find out if the guy might have trade value after all; if so, there's always a chance a team will be willing to trade him for a league minimum player or a minor league prospect, perhaps as part of a larger deal. You can only offer cash in a deal, not "budget room", however.
Barring unexpected success in trade search, I'd just pay the buyout. I doubt it would affect your budget at all come next year.
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