A James Reimer buyout spans 4 years, has a cost of $2,633,333 and savings of $1,316,667. Reimer is 31 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $3,950,000 in salary remaining, the cost is $2,633,333, and the savings are $1,316,667. 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 |
---|
Jun. 15, 2019 | $3,950,000 | $2,250,000 | 2 | 4 | 31 | 2/3 | $2,633,333 | $1,316,667 | $658,333 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (DET) |
2019-20 | $3,100,000 | $3,400,000 | $0 | $658,333 | $658,333 | $2,441,667 | $958,333 |
2020-21 | $850,000 | $3,400,000 | $2,250,000 | $658,333 | $2,908,333 | $191,667 | $3,208,333 |
2021-22 | $0 | $0 | $0 | $658,333 | $658,333 | -$658,333 | $658,333 |
2022-23 | $0 | $0 | $0 | $658,333 | $658,333 | -$658,333 | $658,333 |
TOTAL | $3,950,000 | $6,800,000 | $2,250,000 | $2,633,333 | $4,883,333 | $1,316,667 | $5,483,332 |