A David Backes buyout spans 4 years, has a cost of $2,666,667 and savings of $1,333,333. Backes is 35 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $4,000,000 in salary remaining, the cost is $2,666,667, and the savings are $1,333,333. 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.
Retained Salary
This contract was involved in a retained salary transaction. The resulting costs and cap hit are therefore split between each team based on the percentage of salary retained by the respective teams.
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, 2019 | $4,000,000 | $4,000,000 | 2 | 4 | 35 | 2/3 | $2,666,667 | $1,333,333 | $666,667 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT | CAP HIT (BOS) |
2019-20 | $1,000,000 | $6,000,000 | $3,000,000 | $666,667 | $3,666,667 | $333,333 | $4,250,000 | $1,416,667 |
2020-21 | $3,000,000 | $6,000,000 | $1,000,000 | $666,667 | $1,666,667 | $2,333,333 | $2,750,000 | $916,667 |
2021-22 | $0 | $0 | $0 | $666,667 | $666,667 | -$666,667 | $500,000 | $166,667 |
2022-23 | $0 | $0 | $0 | $666,667 | $666,667 | -$666,667 | $500,000 | $166,667 |
TOTAL | $4,000,000 | $12,000,000 | $4,000,000 | $2,666,667 | $6,666,667 | $1,333,333 | $8,000,000 (75%) | $2,666,668 (25%) |