A Mark Kastelic buyout spans 2 years, has a cost of $290,000 and savings of $580,000. Kastelic is 25 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $870,000 in salary remaining, the cost is $290,000, and the savings are $580,000. 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.
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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Jun. 15, 2024 | $870,000 | $0 | 1 | 2 | 25 | 1/3 | $290,000 | $580,000 | $145,000 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (OTT) |
2024-25 | $870,000 | $835,000 | $0 | $145,000 | $145,000 | $725,000 | $110,000 |
2025-26 | $0 | $0 | $0 | $145,000 | $145,000 | -$145,000 | $145,000 |
TOTAL | $870,000 | $835,000 | $0 | $290,000 | $290,000 | $580,000 | $255,000 |