A Nate Schmidt buyout spans 6 years, has a cost of $9,866,667 and savings of $4,933,333. Schmidt is 30 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $14,800,000 in salary remaining, the cost is $9,866,667, and the savings are $4,933,333. 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.
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 | $14,800,000 | $0 | 3 | 6 | 30 | 2/3 | $9,866,667 | $4,933,333 | $1,644,445 |