A Milan Lucic buyout spans 4 years, has a cost of $2,333,333 and savings of $1,166,667. Lucic is 33 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $3,500,000 in salary remaining, the cost is $2,333,333, and the savings are $1,166,667. 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 |
---|
Jun. 15, 2021 | $3,500,000 | $5,500,000 | 2 | 4 | 33 | 2/3 | $2,333,333 | $1,166,667 | $583,333 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (BOS) | CAP HIT (EDM) |
2021-22 | $2,500,000 | $6,000,000 | $2,500,000 | $583,333 | $3,083,333 | $1,916,667 | $3,572,916 | $510,417 |
2022-23 | $1,000,000 | $6,000,000 | $3,000,000 | $583,333 | $3,583,333 | $416,667 | $4,885,416 | $697,917 |
2023-24 | $0 | $0 | $0 | $583,333 | $583,333 | -$583,333 | $510,416 | $72,917 |
2024-25 | $0 | $0 | $0 | $583,333 | $583,333 | -$583,333 | $510,416 | $72,917 |
TOTAL | $3,500,000 | $12,000,000 | $5,500,000 | $2,333,333 | $7,833,333 | $1,166,667 | $9,479,164 (87.5%) | $1,354,168 (12.5%) |