A Brandon Saad buyout spans 8 years, has a cost of $12,000,000 and savings of $6,000,000. Saad is 29 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $18,000,000 in salary remaining, the cost is $12,000,000, and the savings are $6,000,000. Buyouts span twice the length of the remaining years and because there are 4 years remaining in the contract, the buyout length is 8 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, 2022 | $18,000,000 | $0 | 4 | 8 | 29 | 2/3 | $12,000,000 | $6,000,000 | $1,500,000 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT ( STL) |
2022-23 | $4,500,000 | $4,500,000 | $0 | $1,500,000 | $1,500,000 | $3,000,000 | $1,500,000 |
2023-24 | $5,500,000 | $4,500,000 | $0 | $1,500,000 | $1,500,000 | $4,000,000 | $500,000 |
2024-25 | $4,375,000 | $4,500,000 | $0 | $1,500,000 | $1,500,000 | $2,875,000 | $1,625,000 |
2025-26 | $3,625,000 | $4,500,000 | $0 | $1,500,000 | $1,500,000 | $2,125,000 | $2,375,000 |
2026-27 | $0 | $0 | $0 | $1,500,000 | $1,500,000 | -$1,500,000 | $1,500,000 |
2027-28 | $0 | $0 | $0 | $1,500,000 | $1,500,000 | -$1,500,000 | $1,500,000 |
2028-29 | $0 | $0 | $0 | $1,500,000 | $1,500,000 | -$1,500,000 | $1,500,000 |
2029-30 | $0 | $0 | $0 | $1,500,000 | $1,500,000 | -$1,500,000 | $1,500,000 |
TOTAL | $18,000,000 | $18,000,000 | $0 | $12,000,000 | $12,000,000 | $6,000,000 | $12,000,000 |