A Thomas Milic buyout spans 6 years, has a cost of $775,000 and savings of $1,550,000. Milic is 21 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $2,325,000 in salary remaining, the cost is $775,000, and the savings are $1,550,000. Buyouts span twice the length of the remaining years and because there are 3 years remaining in the contract, the buyout length is 6 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 | $2,325,000 | $200,000 | 3 | 6 | 21 | 1/3 | $775,000 | $1,550,000 | $129,167 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (WPG) |
2024-25 | $775,000 | $841,667 | $60,000 | $129,167 | $189,167 | $645,833 | $195,834 |
2025-26 | $775,000 | $841,667 | $70,000 | $129,167 | $199,167 | $645,833 | $195,834 |
2026-27 | $775,000 | $841,667 | $70,000 | $129,167 | $199,167 | $645,833 | $195,834 |
2027-28 | $0 | $0 | $0 | $129,167 | $129,167 | -$129,167 | $129,167 |
2028-29 | $0 | $0 | $0 | $129,167 | $129,167 | -$129,167 | $129,167 |
2029-30 | $0 | $0 | $0 | $129,167 | $129,167 | -$129,167 | $129,167 |
TOTAL | $2,325,000 | $2,525,001 | $200,000 | $775,000 | $975,000 | $1,550,000 | $975,003 |