A Jeff Carter buyout spans 6 years, has a cost of $4,666,667 and savings of $2,333,333. Carter is 34 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $7,000,000 in salary remaining, the cost is $4,666,667, and the savings are $2,333,333. Buyouts span twice the length of the remaining years and because there are 3 years remaining in the contract, the buyout length is 6 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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Jul. 15, 2019 | $7,000,000 | $0 | 3 | 6 | 34 | 2/3 | $4,666,667 | $2,333,333 | $777,778 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (PIT) | CAP HIT (LAK) |
2019-20 | $3,000,000 | $5,272,727 | $0 | $777,778 | $777,778 | $2,222,222 | $1,525,253 | $1,525,252 |
2020-21 | $2,000,000 | $5,272,727 | $0 | $777,778 | $777,778 | $1,222,222 | $2,025,253 | $2,025,252 |
2021-22 | $2,000,000 | $5,272,727 | $0 | $777,778 | $777,778 | $1,222,222 | $2,025,253 | $2,025,252 |
2022-23 | $0 | $0 | $0 | $777,778 | $777,778 | -$777,778 | $388,889 | $388,889 |
2023-24 | $0 | $0 | $0 | $777,778 | $777,778 | -$777,778 | $388,889 | $388,889 |
2024-25 | $0 | $0 | $0 | $777,778 | $777,778 | -$777,778 | $388,889 | $388,889 |
TOTAL | $7,000,000 | $15,818,181 | $0 | $4,666,667 | $4,666,667 | $2,333,333 | $6,742,426 (50%) | $6,742,423 (50%) |