A Ryan McDonagh buyout spans 4 years, has a cost of $7,420,000 and savings of $3,710,000. McDonagh is 35 years of age at the time of the buyout; therefore, the buyout ratio is 2/3. With $11,130,000 in salary remaining, the cost is $7,420,000, and the savings are $3,710,000. 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 | $11,130,000 | $0 | 2 | 4 | 35 | 2/3 | $7,420,000 | $3,710,000 | $1,855,000 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (NSH) |
2024-25 | $6,930,000 | $6,750,000 | $0 | $1,855,000 | $1,855,000 | $5,075,000 | $1,675,000 |
2025-26 | $4,200,000 | $6,750,000 | $0 | $1,855,000 | $1,855,000 | $2,345,000 | $4,405,000 |
2026-27 | $0 | $0 | $0 | $1,855,000 | $1,855,000 | -$1,855,000 | $1,855,000 |
2027-28 | $0 | $0 | $0 | $1,855,000 | $1,855,000 | -$1,855,000 | $1,855,000 |
TOTAL | $11,130,000 | $13,500,000 | $0 | $7,420,000 | $7,420,000 | $3,710,000 | $9,790,000 |