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A Patrik Nemeth buyout spans 4 years, has a cost of $4,000,000 and savings of $2,000,000. Nemeth is 30 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $6,000,000 in salary remaining, the cost is $4,000,000, and the savings are $2,000,000. 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.
| BUYOUT DATE | BASE SALARY REMAINING | S.BONUS REMAINING | YEARS REMAINING | BUYOUT LENGTH | AGE | BUYOUT RATIO | TOTAL COST | TOTAL SAVINGS | ANNUAL COST |
|---|---|---|---|---|---|---|---|---|---|
| Jun. 15, 2022 | $6,000,000 | $0 | 2 | 4 | 30 | 2/3 | $4,000,000 | $2,000,000 | $1,000,000 |
| SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT ( NYR) |
| 2022-23 | $2,500,000 | $2,500,000 | $0 | $1,000,000 | $1,000,000 | $1,500,000 | $1,000,000 |
| 2023-24 | $3,500,000 | $2,500,000 | $0 | $1,000,000 | $1,000,000 | $2,500,000 | $0 |
| 2024-25 | $0 | $0 | $0 | $1,000,000 | $1,000,000 | -$1,000,000 | $1,000,000 |
| 2025-26 | $0 | $0 | $0 | $1,000,000 | $1,000,000 | -$1,000,000 | $1,000,000 |
| TOTAL | $6,000,000 | $5,000,000 | $0 | $4,000,000 | $4,000,000 | $2,000,000 | $3,000,000 |
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