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|