A Alex Newhook buyout spans 6 years, has a cost of $2,700,000 and savings of $5,400,000. Newhook is 23 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $8,100,000 in salary remaining, the cost is $2,700,000, and the savings are $5,400,000. 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.
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 | $8,100,000 | $0 | 3 | 6 | 23 | 1/3 | $2,700,000 | $5,400,000 | $450,000 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (MTL) |
2024-25 | $3,300,000 | $2,900,000 | $0 | $450,000 | $450,000 | $2,850,000 | $50,000 |
2025-26 | $2,700,000 | $2,900,000 | $0 | $450,000 | $450,000 | $2,250,000 | $650,000 |
2026-27 | $2,100,000 | $2,900,000 | $0 | $450,000 | $450,000 | $1,650,000 | $1,250,000 |
2027-28 | $0 | $0 | $0 | $450,000 | $450,000 | -$450,000 | $450,000 |
2028-29 | $0 | $0 | $0 | $450,000 | $450,000 | -$450,000 | $450,000 |
2029-30 | $0 | $0 | $0 | $450,000 | $450,000 | -$450,000 | $450,000 |
TOTAL | $8,100,000 | $8,700,000 | $0 | $2,700,000 | $2,700,000 | $5,400,000 | $3,300,000 |