A Michael Rasmussen buyout spans 8 years, has a cost of $4,100,000 and savings of $8,200,000. Rasmussen is 25 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $12,300,000 in salary remaining, the cost is $4,100,000, and the savings are $8,200,000. Buyouts span twice the length of the remaining years and because there are 4 years remaining in the contract, the buyout length is 8 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 | $12,300,000 | $500,000 | 4 | 8 | 25 | 1/3 | $4,100,000 | $8,200,000 | $512,500 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (DET) |
2024-25 | $2,050,000 | $3,200,000 | $500,000 | $512,500 | $1,012,500 | $1,537,500 | $1,662,500 |
2025-26 | $2,950,000 | $3,200,000 | $0 | $512,500 | $512,500 | $2,437,500 | $762,500 |
2026-27 | $3,650,000 | $3,200,000 | $0 | $512,500 | $512,500 | $3,137,500 | $62,500 |
2027-28 | $3,650,000 | $3,200,000 | $0 | $512,500 | $512,500 | $3,137,500 | $62,500 |
2028-29 | $0 | $0 | $0 | $512,500 | $512,500 | -$512,500 | $512,500 |
2029-30 | $0 | $0 | $0 | $512,500 | $512,500 | -$512,500 | $512,500 |
2030-31 | $0 | $0 | $0 | $512,500 | $512,500 | -$512,500 | $512,500 |
2031-32 | $0 | $0 | $0 | $512,500 | $512,500 | -$512,500 | $512,500 |
TOTAL | $12,300,000 | $12,800,000 | $500,000 | $4,100,000 | $4,600,000 | $8,200,000 | $4,600,000 |