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A Luke Kunin buyout spans 2 years, has a cost of $1,000,000 and savings of $2,000,000. Kunin is 25 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $3,000,000 in salary remaining, the cost is $1,000,000, and the savings are $2,000,000. Buyouts span twice the length of the remaining years and because there is 1 year remaining in the contract, the buyout length is 2 years. The buyout cap hit is displayed in the Cap Hit Calculations table below.
| BUYOUT DATE | BASE SALARY REMAINING | S.BONUS REMAINING | YEARS REMAINING | BUYOUT LENGTH | AGE | BUYOUT RATIO | TOTAL COST | TOTAL SAVINGS | ANNUAL COST |
|---|---|---|---|---|---|---|---|---|---|
| Jun. 15, 2023 | $3,000,000 | $0 | 1 | 2 | 25 | 1/3 | $1,000,000 | $2,000,000 | $500,000 |
| SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT ( SJS) |
| 2023-24 | $3,000,000 | $2,750,000 | $0 | $500,000 | $500,000 | $2,500,000 | $250,000 |
| 2024-25 | $0 | $0 | $0 | $500,000 | $500,000 | -$500,000 | $500,000 |
| TOTAL | $3,000,000 | $2,750,000 | $0 | $1,000,000 | $1,000,000 | $2,000,000 | $750,000 |
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