A Alexander Wennberg buyout spans 2 years, has a cost of $750,000 and savings of $1,500,000. Wennberg is 25 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $2,250,000 in salary remaining, the cost is $750,000, and the savings are $1,500,000. 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, 2020 | $2,250,000 | $0 | 1 | 2 | 25 | 1/3 | $750,000 | $1,500,000 | $375,000 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (NYR) |
2020-21 | $2,250,000 | $2,250,000 | $0 | $375,000 | $375,000 | $1,875,000 | $375,000 |
2021-22 | $0 | $0 | $0 | $375,000 | $375,000 | -$375,000 | $375,000 |
TOTAL | $2,250,000 | $2,250,000 | $0 | $750,000 | $750,000 | $1,500,000 | $750,000 |