A Marc Staal buyout spans 2 years, has a cost of $2,133,333 and savings of $1,066,667. Staal is 33 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $3,200,000 in salary remaining, the cost is $2,133,333, and the savings are $1,066,667. 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.
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, 2020 | $3,200,000 | $1,000,000 | 1 | 2 | 33 | 2/3 | $2,133,333 | $1,066,667 | $1,066,667 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (PHI) |
2020-21 | $3,200,000 | $5,700,000 | $1,000,000 | $1,066,667 | $2,066,667 | $2,133,333 | $3,566,667 |
2021-22 | $0 | $0 | $0 | $1,066,667 | $1,066,667 | -$1,066,667 | $1,066,667 |
TOTAL | $3,200,000 | $5,700,000 | $1,000,000 | $2,133,333 | $3,133,333 | $1,066,667 | $4,633,334 |