A Milan Lucic buyout spans 6 years, has a cost of $3,000,000 and savings of $1,500,000. Lucic is 32 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $4,500,000 in salary remaining, the cost is $3,000,000, and the savings are $1,500,000. Buyouts span twice the length of the remaining years and because there are 3 years remaining in the contract, the buyout length is 6 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, 2020 | $4,500,000 | $8,500,000 | 3 | 6 | 32 | 2/3 | $3,000,000 | $1,500,000 | $500,000 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (BOS) | CAP HIT (EDM) |
2020-21 | $1,000,000 | $6,000,000 | $3,000,000 | $500,000 | $3,500,000 | $500,000 | $4,812,500 | $687,500 |
2021-22 | $2,500,000 | $6,000,000 | $2,500,000 | $500,000 | $3,000,000 | $2,000,000 | $3,500,000 | $500,000 |
2022-23 | $1,000,000 | $6,000,000 | $3,000,000 | $500,000 | $3,500,000 | $500,000 | $4,812,500 | $687,500 |
2023-24 | $0 | $0 | $0 | $500,000 | $500,000 | -$500,000 | $437,500 | $62,500 |
2024-25 | $0 | $0 | $0 | $500,000 | $500,000 | -$500,000 | $437,500 | $62,500 |
2025-26 | $0 | $0 | $0 | $500,000 | $500,000 | -$500,000 | $437,500 | $62,500 |
TOTAL | $4,500,000 | $18,000,000 | $8,500,000 | $3,000,000 | $11,500,000 | $1,500,000 | $14,437,500 (87.5%) | $2,062,500 (12.5%) |