A Alex Laferriere buyout spans 2 years, has a cost of $262,500 and savings of $525,000. Laferriere is 22 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $787,500 in salary remaining, the cost is $262,500, and the savings are $525,000. Buyouts span twice the length of the remaining years and because there is 1 year remaining in the contract, the buyout length is 2 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 | $787,500 | $87,500 | 1 | 2 | 22 | 1/3 | $262,500 | $525,000 | $131,250 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (LAK) |
2024-25 | $787,500 | $875,000 | $87,500 | $131,250 | $218,750 | $656,250 | $218,750 |
2025-26 | $0 | $0 | $0 | $131,250 | $131,250 | -$131,250 | $131,250 |
TOTAL | $787,500 | $875,000 | $87,500 | $262,500 | $350,000 | $525,000 | $350,000 |