A Brendan Smith buyout spans 2 years, has a cost of $1,566,667 and savings of $783,333. Smith is 31 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $2,350,000 in salary remaining, the cost is $1,566,667, and the savings are $783,333. 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 | $2,350,000 | $1,000,000 | 1 | 2 | 31 | 2/3 | $1,566,667 | $783,333 | $783,334 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (NJD) |
2020-21 | $2,350,000 | $4,350,000 | $1,000,000 | $783,334 | $1,783,334 | $1,566,666 | $2,783,334 |
2021-22 | $0 | $0 | $0 | $783,334 | $783,334 | -$783,334 | $783,334 |
TOTAL | $2,350,000 | $4,350,000 | $1,000,000 | $1,566,667 | $2,566,667 | $783,333 | $3,566,668 |