A Spencer Knight buyout spans 4 years, has a cost of $3,000,000 and savings of $6,000,000. Knight is 23 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $9,000,000 in salary remaining, the cost is $3,000,000, and the savings are $6,000,000. 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.
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 | $9,000,000 | $0 | 2 | 4 | 23 | 1/3 | $3,000,000 | $6,000,000 | $750,000 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (FLA) |
2024-25 | $4,500,000 | $4,500,000 | $0 | $750,000 | $750,000 | $3,750,000 | $750,000 |
2025-26 | $4,500,000 | $4,500,000 | $0 | $750,000 | $750,000 | $3,750,000 | $750,000 |
2026-27 | $0 | $0 | $0 | $750,000 | $750,000 | -$750,000 | $750,000 |
2027-28 | $0 | $0 | $0 | $750,000 | $750,000 | -$750,000 | $750,000 |
TOTAL | $9,000,000 | $9,000,000 | $0 | $3,000,000 | $3,000,000 | $6,000,000 | $3,000,000 |