A Ryan Lindgren buyout spans 4 years, has a cost of $2,333,333 and savings of $4,666,667. Lindgren is 24 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $7,000,000 in salary remaining, the cost is $2,333,333, and the savings are $4,666,667. 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, 2022 | $7,000,000 | $0 | 2 | 4 | 24 | 1/3 | $2,333,333 | $4,666,667 | $583,333 |