A Matt Murray buyout spans 4 years, has a cost of $10,000,000 and savings of $5,000,000. Murray is 28 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $15,000,000 in salary remaining, the cost is $10,000,000, and the savings are $5,000,000. 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.
Retained Salary
This contract was involved in a retained salary transaction. The resulting costs and cap hit are therefore split between each team based on the percentage of salary retained by the respective teams.
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, 2022 | $15,000,000 | $0 | 2 | 4 | 28 | 2/3 | $10,000,000 | $5,000,000 | $2,500,000 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT ( TOR) | CAP HIT ( OTT) |
2022-23 | $7,000,000 | $6,250,000 | $0 | $2,500,000 | $2,500,000 | $4,500,000 | $1,312,500 | $437,500 |
2023-24 | $8,000,000 | $6,250,000 | $0 | $2,500,000 | $2,500,000 | $5,500,000 | $562,500 | $187,500 |
2024-25 | $0 | $0 | $0 | $2,500,000 | $2,500,000 | -$2,500,000 | $1,875,000 | $625,000 |
2025-26 | $0 | $0 | $0 | $2,500,000 | $2,500,000 | -$2,500,000 | $1,875,000 | $625,000 |
TOTAL | $15,000,000 | $12,500,000 | $0 | $10,000,000 | $10,000,000 | $5,000,000 | $5,625,000 (75%) | $1,875,000 (25%) |