A Calvin De Haan buyout spans 4 years, has a cost of $6,333,333 and savings of $3,166,667. De Haan is 29 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $9,500,000 in salary remaining, the cost is $6,333,333, and the savings are $3,166,667. Buyouts span twice the length of the remaining years and because there are 2 years remaining in the contract, the buyout length is 4 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 | $9,500,000 | $0 | 2 | 4 | 29 | 2/3 | $6,333,333 | $3,166,667 | $1,583,333 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (TBL) |
2020-21 | $4,100,000 | $4,550,000 | $0 | $1,583,333 | $1,583,333 | $2,516,667 | $2,033,333 |
2021-22 | $5,400,000 | $4,550,000 | $0 | $1,583,333 | $1,583,333 | $3,816,667 | $733,333 |
2022-23 | $0 | $0 | $0 | $1,583,333 | $1,583,333 | -$1,583,333 | $1,583,333 |
2023-24 | $0 | $0 | $0 | $1,583,333 | $1,583,333 | -$1,583,333 | $1,583,333 |
TOTAL | $9,500,000 | $9,100,000 | $0 | $6,333,333 | $6,333,333 | $3,166,667 | $5,933,332 |