A Samuel Hlavaj buyout spans 4 years, has a cost of $520,000 and savings of $1,040,000. Hlavaj is 23 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $1,560,000 in salary remaining, the cost is $520,000, and the savings are $1,040,000. 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 | $1,560,000 | $190,000 | 2 | 4 | 23 | 1/3 | $520,000 | $1,040,000 | $130,000 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (MIN) |
2024-25 | $775,000 | $875,000 | $95,000 | $130,000 | $225,000 | $645,000 | $230,000 |
2025-26 | $785,000 | $875,000 | $95,000 | $130,000 | $225,000 | $655,000 | $220,000 |
2026-27 | $0 | $0 | $0 | $130,000 | $130,000 | -$130,000 | $130,000 |
2027-28 | $0 | $0 | $0 | $130,000 | $130,000 | -$130,000 | $130,000 |
TOTAL | $1,560,000 | $1,750,000 | $190,000 | $520,000 | $710,000 | $1,040,000 | $710,000 |