A Eeli Tolvanen buyout spans 4 years, has a cost of $966,667 and savings of $1,933,333. Tolvanen is 23 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $2,900,000 in salary remaining, the cost is $966,667, and the savings are $1,933,333. 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.
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 | $2,900,000 | $0 | 2 | 4 | 23 | 1/3 | $966,667 | $1,933,333 | $241,667 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT ( NSH) |
2022-23 | $1,450,000 | $1,450,000 | $0 | $241,667 | $241,667 | $1,208,333 | $241,667 |
2023-24 | $1,450,000 | $1,450,000 | $0 | $241,667 | $241,667 | $1,208,333 | $241,667 |
2024-25 | $0 | $0 | $0 | $241,667 | $241,667 | -$241,667 | $241,667 |
2025-26 | $0 | $0 | $0 | $241,667 | $241,667 | -$241,667 | $241,667 |
TOTAL | $2,900,000 | $2,900,000 | $0 | $966,667 | $966,667 | $1,933,333 | $966,668 |