A Noah Cates buyout spans 2 years, has a cost of $875,000 and savings of $1,750,000. Cates is 25 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $2,625,000 in salary remaining, the cost is $875,000, and the savings are $1,750,000. Buyouts span twice the length of the remaining years and because there is 1 year remaining in the contract, the buyout length is 2 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 |
---|
Jun. 15, 2024 | $2,625,000 | $0 | 1 | 2 | 25 | 1/3 | $875,000 | $1,750,000 | $437,500 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (PHI) |
2024-25 | $2,625,000 | $2,625,000 | $0 | $437,500 | $437,500 | $2,187,500 | $437,500 |
2025-26 | $0 | $0 | $0 | $437,500 | $437,500 | -$437,500 | $437,500 |
TOTAL | $2,625,000 | $2,625,000 | $0 | $875,000 | $875,000 | $1,750,000 | $875,000 |