A Owen Beck buyout spans 4 years, has a cost of $563,333 and savings of $1,126,667. Beck is 20 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $1,690,000 in salary remaining, the cost is $563,333, and the savings are $1,126,667. 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.
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 | $1,690,000 | $95,000 | 2 | 4 | 20 | 1/3 | $563,333 | $1,126,667 | $140,833 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (MTL) |
2024-25 | $835,000 | $885,000 | $95,000 | $140,833 | $235,833 | $694,167 | $190,833 |
2025-26 | $855,000 | $885,000 | $0 | $140,833 | $140,833 | $714,167 | $170,833 |
2026-27 | $0 | $0 | $0 | $140,833 | $140,833 | -$140,833 | $140,833 |
2027-28 | $0 | $0 | $0 | $140,833 | $140,833 | -$140,833 | $140,833 |
TOTAL | $1,690,000 | $1,770,000 | $95,000 | $563,333 | $658,333 | $1,126,667 | $643,332 |