A Colton Sissons buyout spans 4 years, has a cost of $2,750,000 and savings of $1,375,000. Sissons is 30 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $4,125,000 in salary remaining, the cost is $2,750,000, and the savings are $1,375,000. Buyouts span twice the length of the remaining years and because there are 2 years remaining in the contract, the buyout length is 4 years. The buyout cap hit is displayed in the Cap Hit Calculations table below.
Cost Calculations
BUYOUT DATE | BASE SALARY REMAINING | S.BONUS REMAINING | YEARS REMAINING | BUYOUT LENGTH | AGE | BUYOUT RATIO | TOTAL COST | TOTAL SAVINGS | ANNUAL COST |
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Jun. 15, 2024 | $4,125,000 | $0 | 2 | 4 | 30 | 2/3 | $2,750,000 | $1,375,000 | $687,500 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (NSH) |
2024-25 | $2,300,000 | $2,857,143 | $0 | $687,500 | $687,500 | $1,612,500 | $1,244,643 |
2025-26 | $1,825,000 | $2,857,143 | $0 | $687,500 | $687,500 | $1,137,500 | $1,719,643 |
2026-27 | $0 | $0 | $0 | $687,500 | $687,500 | -$687,500 | $687,500 |
2027-28 | $0 | $0 | $0 | $687,500 | $687,500 | -$687,500 | $687,500 |
TOTAL | $4,125,000 | $5,714,286 | $0 | $2,750,000 | $2,750,000 | $1,375,000 | $4,339,286 |