A Joel Eriksson Ek buyout spans 10 years, has a cost of $20,000,000 and savings of $10,000,000. Eriksson Ek is 27 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $30,000,000 in salary remaining, the cost is $20,000,000, and the savings are $10,000,000. Buyouts span twice the length of the remaining years and because there are 5 years remaining in the contract, the buyout length is 10 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, 2024 | $30,000,000 | $0 | 5 | 10 | 27 | 2/3 | $20,000,000 | $10,000,000 | $2,000,000 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (MIN) |
2024-25 | $9,000,000 | $5,250,000 | $0 | $2,000,000 | $2,000,000 | $7,000,000 | -$1,750,000 |
2025-26 | $7,500,000 | $5,250,000 | $0 | $2,000,000 | $2,000,000 | $5,500,000 | -$250,000 |
2026-27 | $6,000,000 | $5,250,000 | $0 | $2,000,000 | $2,000,000 | $4,000,000 | $1,250,000 |
2027-28 | $4,500,000 | $5,250,000 | $0 | $2,000,000 | $2,000,000 | $2,500,000 | $2,750,000 |
2028-29 | $3,000,000 | $5,250,000 | $0 | $2,000,000 | $2,000,000 | $1,000,000 | $4,250,000 |
2029-30 | $0 | $0 | $0 | $2,000,000 | $2,000,000 | -$2,000,000 | $2,000,000 |
2030-31 | $0 | $0 | $0 | $2,000,000 | $2,000,000 | -$2,000,000 | $2,000,000 |
2031-32 | $0 | $0 | $0 | $2,000,000 | $2,000,000 | -$2,000,000 | $2,000,000 |
2032-33 | $0 | $0 | $0 | $2,000,000 | $2,000,000 | -$2,000,000 | $2,000,000 |
2033-34 | $0 | $0 | $0 | $2,000,000 | $2,000,000 | -$2,000,000 | $2,000,000 |
TOTAL | $30,000,000 | $26,250,000 | $0 | $20,000,000 | $20,000,000 | $10,000,000 | $16,250,000 |