A Milan Lucic buyout spans 8 years, has a cost of $5,000,000 and savings of $2,500,000. Lucic is 31 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $7,500,000 in salary remaining, the cost is $5,000,000, and the savings are $2,500,000. 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.
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 |
|---|
| Jun. 15, 2019 | $7,500,000 | $11,500,000 | 4 | 8 | 31 | 2/3 | $5,000,000 | $2,500,000 | $625,000 |
Cap Hit Calculations
| SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT ( BOS) | CAP HIT ( EDM) |
| 2019-20 | $3,000,000 | $6,000,000 | $3,000,000 | $625,000 | $3,625,000 | $2,375,000 | $3,171,875 | $453,125 |
| 2020-21 | $1,000,000 | $6,000,000 | $3,000,000 | $625,000 | $3,625,000 | $375,000 | $4,921,875 | $703,125 |
| 2021-22 | $2,500,000 | $6,000,000 | $2,500,000 | $625,000 | $3,125,000 | $1,875,000 | $3,609,375 | $515,625 |
| 2022-23 | $1,000,000 | $6,000,000 | $3,000,000 | $625,000 | $3,625,000 | $375,000 | $4,921,875 | $703,125 |
| 2023-24 | $0 | $0 | $0 | $625,000 | $625,000 | -$625,000 | $546,875 | $78,125 |
| 2024-25 | $0 | $0 | $0 | $625,000 | $625,000 | -$625,000 | $546,875 | $78,125 |
| 2025-26 | $0 | $0 | $0 | $625,000 | $625,000 | -$625,000 | $546,875 | $78,125 |
| 2026-27 | $0 | $0 | $0 | $625,000 | $625,000 | -$625,000 | $546,875 | $78,125 |
| TOTAL | $7,500,000 | $24,000,000 | $11,500,000 | $5,000,000 | $16,500,000 | $2,500,000 | $18,812,500 (87.5%) | $2,687,500 (12.5%) |