A Cory Schneider buyout spans 2 years, has a cost of $466,667 and savings of $233,333. Schneider is 34 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $700,000 in salary remaining, the cost is $466,667, and the savings are $233,333. 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 | $700,000 | $0 | 1 | 2 | 34 | 2/3 | $466,667 | $233,333 | $233,334 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT |
2020-21 | $700,000 | $700,000 | $0 | $233,334 | $233,334 | $466,666 | $233,334 |
2021-22 | $0 | $0 | $0 | $233,334 | $233,334 | -$233,334 | $233,334 |
TOTAL | $700,000 | $700,000 | $0 | $466,667 | $466,667 | $233,333 | $466,668 |