A Owen Tippett buyout spans 16 years, has a cost of $11,200,000 and savings of $22,400,000. Tippett is 25 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $33,600,000 in salary remaining, the cost is $11,200,000, and the savings are $22,400,000. Buyouts span twice the length of the remaining years and because there are 8 years remaining in the contract, the buyout length is 16 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 | $33,600,000 | $16,000,000 | 8 | 16 | 25 | 1/3 | $11,200,000 | $22,400,000 | $700,000 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (PHI) |
2024-25 | $1,000,000 | $6,200,000 | $5,000,000 | $700,000 | $5,700,000 | $300,000 | $5,900,000 |
2025-26 | $2,500,000 | $6,200,000 | $5,000,000 | $700,000 | $5,700,000 | $1,800,000 | $4,400,000 |
2026-27 | $4,500,000 | $6,200,000 | $0 | $700,000 | $700,000 | $3,800,000 | $2,400,000 |
2027-28 | $3,500,000 | $6,200,000 | $3,000,000 | $700,000 | $3,700,000 | $2,800,000 | $3,400,000 |
2028-29 | $5,000,000 | $6,200,000 | $3,000,000 | $700,000 | $3,700,000 | $4,300,000 | $1,900,000 |
2029-30 | $7,500,000 | $6,200,000 | $0 | $700,000 | $700,000 | $6,800,000 | -$600,000 |
2030-31 | $5,100,000 | $6,200,000 | $0 | $700,000 | $700,000 | $4,400,000 | $1,800,000 |
2031-32 | $4,500,000 | $6,200,000 | $0 | $700,000 | $700,000 | $3,800,000 | $2,400,000 |
2032-33 | $0 | $0 | $0 | $700,000 | $700,000 | -$700,000 | $700,000 |
2033-34 | $0 | $0 | $0 | $700,000 | $700,000 | -$700,000 | $700,000 |
2034-35 | $0 | $0 | $0 | $700,000 | $700,000 | -$700,000 | $700,000 |
2035-36 | $0 | $0 | $0 | $700,000 | $700,000 | -$700,000 | $700,000 |
2036-37 | $0 | $0 | $0 | $700,000 | $700,000 | -$700,000 | $700,000 |
2037-38 | $0 | $0 | $0 | $700,000 | $700,000 | -$700,000 | $700,000 |
2038-39 | $0 | $0 | $0 | $700,000 | $700,000 | -$700,000 | $700,000 |
2039-40 | $0 | $0 | $0 | $700,000 | $700,000 | -$700,000 | $700,000 |
TOTAL | $33,600,000 | $49,600,000 | $16,000,000 | $11,200,000 | $27,200,000 | $22,400,000 | $27,200,000 |