A Erik Karlsson buyout spans 6 years, has a cost of $10,333,333 and savings of $5,166,667. Karlsson is 34 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $15,500,000 in salary remaining, the cost is $10,333,333, and the savings are $5,166,667. Buyouts span twice the length of the remaining years and because there are 3 years remaining in the contract, the buyout length is 6 years. The buyout cap hit is displayed in the Cap Hit Calculations table below.
Retained Salary
This contract was involved in a retained salary transaction. The resulting costs and cap hit are therefore split between each team based on the percentage of salary retained by the respective teams.
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 | $15,500,000 | $12,000,000 | 3 | 6 | 34 | 2/3 | $10,333,333 | $5,166,667 | $1,722,222 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (PIT) | CAP HIT (SJS) |
2024-25 | $10,000,000 | $11,500,000 | $1,000,000 | $1,722,222 | $2,722,222 | $8,277,778 | $2,801,932 | $420,290 |
2025-26 | $4,000,000 | $11,500,000 | $5,000,000 | $1,722,222 | $6,722,222 | $2,277,778 | $8,019,324 | $1,202,898 |
2026-27 | $1,500,000 | $11,500,000 | $6,000,000 | $1,722,222 | $7,722,222 | -$222,222 | $10,193,237 | $1,528,985 |
2027-28 | $0 | $0 | $0 | $1,722,222 | $1,722,222 | -$1,722,222 | $1,497,584 | $224,638 |
2028-29 | $0 | $0 | $0 | $1,722,222 | $1,722,222 | -$1,722,222 | $1,497,584 | $224,638 |
2029-30 | $0 | $0 | $0 | $1,722,222 | $1,722,222 | -$1,722,222 | $1,497,584 | $224,638 |
TOTAL | $15,500,000 | $34,500,000 | $12,000,000 | $10,333,333 | $22,333,333 | $5,166,667 | $25,507,245 (87%) | $3,826,087 (13%) |