A Mathieu Joseph buyout spans 4 years, has a cost of $4,400,000 and savings of $2,200,000. Joseph is 27 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $6,600,000 in salary remaining, the cost is $4,400,000, and the savings are $2,200,000. Buyouts span twice the length of the remaining years and because there are 2 years remaining in the contract, the buyout length is 4 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 | $6,600,000 | $0 | 2 | 4 | 27 | 2/3 | $4,400,000 | $2,200,000 | $1,100,000 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (OTT) |
2024-25 | $3,300,000 | $2,950,000 | $0 | $1,100,000 | $1,100,000 | $2,200,000 | $750,000 |
2025-26 | $3,300,000 | $2,950,000 | $0 | $1,100,000 | $1,100,000 | $2,200,000 | $750,000 |
2026-27 | $0 | $0 | $0 | $1,100,000 | $1,100,000 | -$1,100,000 | $1,100,000 |
2027-28 | $0 | $0 | $0 | $1,100,000 | $1,100,000 | -$1,100,000 | $1,100,000 |
TOTAL | $6,600,000 | $5,900,000 | $0 | $4,400,000 | $4,400,000 | $2,200,000 | $3,700,000 |