A P.K. Subban buyout spans 4 years, has a cost of $2,666,667 and savings of $1,333,333. Subban is 31 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $4,000,000 in salary remaining, the cost is $2,666,667, and the savings are $1,333,333. 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 |
---|
Jun. 15, 2020 | $4,000,000 | $12,000,000 | 2 | 4 | 31 | 2/3 | $2,666,667 | $1,333,333 | $666,667 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT |
2020-21 | $2,000,000 | $9,000,000 | $6,000,000 | $666,667 | $6,666,667 | $1,333,333 | $7,666,667 |
2021-22 | $2,000,000 | $9,000,000 | $6,000,000 | $666,667 | $6,666,667 | $1,333,333 | $7,666,667 |
2022-23 | $0 | $0 | $0 | $666,667 | $666,667 | -$666,667 | $666,667 |
2023-24 | $0 | $0 | $0 | $666,667 | $666,667 | -$666,667 | $666,667 |
TOTAL | $4,000,000 | $18,000,000 | $12,000,000 | $2,666,667 | $14,666,667 | $1,333,333 | $16,666,668 |