A Nick Schmaltz buyout spans 4 years, has a cost of $10,300,000 and savings of $5,150,000. Schmaltz is 28 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $15,450,000 in salary remaining, the cost is $10,300,000, and the savings are $5,150,000. 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.
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 | $15,450,000 | $1,500,000 | 2 | 4 | 28 | 2/3 | $10,300,000 | $5,150,000 | $2,575,000 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (ARI) |
2024-25 | $6,950,000 | $5,850,000 | $1,500,000 | $2,575,000 | $4,075,000 | $4,375,000 | $1,475,000 |
2025-26 | $8,500,000 | $5,850,000 | $0 | $2,575,000 | $2,575,000 | $5,925,000 | -$75,000 |
2026-27 | $0 | $0 | $0 | $2,575,000 | $2,575,000 | -$2,575,000 | $2,575,000 |
2027-28 | $0 | $0 | $0 | $2,575,000 | $2,575,000 | -$2,575,000 | $2,575,000 |
TOTAL | $15,450,000 | $11,700,000 | $1,500,000 | $10,300,000 | $11,800,000 | $5,150,000 | $6,550,000 |