Contract buyout

submasterchief · 01-07-2017, 04:35 PM

Jeff,

Hoping you can help me understand the annual buyout. I am hoping to buyout Jimmy Howard during the upcoming buyout day. Can you help me understand what stack of money does the buyout come from? How much will be carried over in future years (buyout/retained salaries)? (see next post)

I think to really navigate the off-season - GM's must fully understand this process, and I don't. Thanks!

submasterchief · 01-07-2017, 04:38 PM

submasterchief · 01-11-2017, 05:07 PM

Jeff,

Thought son my questions?

JeffR · 01-12-2017, 05:28 AM

The whole formula is a little complicated; CapFriendly has a (somewhat) concise explanation of it here: https://www.capfriendly.com/buyout-faq (and a buyout calculator at in their "Calculators" section at the top of the page.)

Basically, the money is paid out in cash immediately to the player (depending on his age, either 1/3 or 2/3 of the remaining value of the contract) and the cap hit of the buyout value is spread over twice the remaining length of the contract via a formula that depends in part on how much cap hit the team saves in the years originally covered in the contract. But there can be complicating factors, e.g. if the player signed the contract after he turned 35, the buyout can't give the team any more total cap room.

01-07-2017, 04:35 PM	#1
submasterchief Minors (Single A) Join Date: Jan 2009 Posts: 74	Contract buyout Jeff, Hoping you can help me understand the annual buyout. I am hoping to buyout Jimmy Howard during the upcoming buyout day. Can you help me understand what stack of money does the buyout come from? How much will be carried over in future years (buyout/retained salaries)? (see next post) I think to really navigate the off-season - GM's must fully understand this process, and I don't. Thanks! Attached Images Last edited by submasterchief; 01-07-2017 at 04:40 PM.

01-07-2017, 04:38 PM	#2
submasterchief Minors (Single A) Join Date: Jan 2009 Posts: 74	Contract buyout Attached Images

01-11-2017, 05:07 PM	#3
submasterchief Minors (Single A) Join Date: Jan 2009 Posts: 74	Jeff, Thought son my questions?

01-12-2017, 05:28 AM	#4
JeffR FHM Producer Join Date: Apr 2002 Location: Kelowna, BC Posts: 16,623	The whole formula is a little complicated; CapFriendly has a (somewhat) concise explanation of it here: https://www.capfriendly.com/buyout-faq (and a buyout calculator at in their "Calculators" section at the top of the page.) Basically, the money is paid out in cash immediately to the player (depending on his age, either 1/3 or 2/3 of the remaining value of the contract) and the cap hit of the buyout value is spread over twice the remaining length of the contract via a formula that depends in part on how much cap hit the team saves in the years originally covered in the contract. But there can be complicating factors, e.g. if the player signed the contract after he turned 35, the buyout can't give the team any more total cap room.