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A William Borgen buyout spans 2 years, has a cost of $300,000 and savings of $600,000. Borgen is 25 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $900,000 in salary remaining, the cost is $300,000, and the savings are $600,000. Buyouts span twice the length of the remaining years and because there is 1 year remaining in the contract, the buyout length is 2 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 | $900,000 | $0 | 1 | 2 | 25 | 1/3 | $300,000 | $600,000 | $150,000 |
| SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT ( SEA) |
| 2022-23 | $900,000 | $900,000 | $0 | $150,000 | $150,000 | $750,000 | $150,000 |
| 2023-24 | $0 | $0 | $0 | $150,000 | $150,000 | -$150,000 | $150,000 |
| TOTAL | $900,000 | $900,000 | $0 | $300,000 | $300,000 | $600,000 | $300,000 |
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