A Beau Akey buyout spans 6 years, has a cost of $800,000 and savings of $1,600,000. Akey is 19 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $2,400,000 in salary remaining, the cost is $800,000, and the savings are $1,600,000. 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 | $2,400,000 | $190,000 | 3 | 6 | 19 | 1/3 | $800,000 | $1,600,000 | $133,333 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (EDM) |
2024-25 | $775,000 | $863,333 | $95,000 | $133,333 | $228,333 | $641,667 | $221,666 |
2025-26 | $800,000 | $863,333 | $95,000 | $133,333 | $228,333 | $666,667 | $196,666 |
2026-27 | $825,000 | $863,333 | $0 | $133,333 | $133,333 | $691,667 | $171,666 |
2027-28 | $0 | $0 | $0 | $133,333 | $133,333 | -$133,333 | $133,333 |
2028-29 | $0 | $0 | $0 | $133,333 | $133,333 | -$133,333 | $133,333 |
2029-30 | $0 | $0 | $0 | $133,333 | $133,333 | -$133,333 | $133,333 |
TOTAL | $2,400,000 | $2,589,999 | $190,000 | $800,000 | $990,000 | $1,600,000 | $989,997 |