Damon Severson buyout calculator, cap hit impact

Damon Severson Buyout Cap Implications

Birthdate August 7, 1994

If Damon Severson was bought out prior to the 2021-2022 season.

The annual cap hit of a buyout is calculated year by year as follows:

  • Add together the Original Cap Hit and the Contract Signing Bonus for that year
  • Subtract the Contract Total Salary for that year (base salary + signing bonus).
  • Finally, add the Annual Buyout Cost as calculated below.

He would be 26 years old at the buyout giving him a 67% buyout multiplier.
Under 26 = 1/3 multiplier
26+ = 2/3 multiplier

The total buyout cost would be $6,766,667
Remaining base salary
($10,150,000 * 67% buyout multiplier)
.

2 years left in contract.
Buyout applied over 4 years
(2x years remaining on contract)

Annual buyout cost of $1,691,667
(Total buyout cost/4 years)

Damon Severson projected buyout 2021-2022 season
2021-2022 2022-2023 2023-2024 2024-2025
Remaining Base Salary
$10,150,000
$5,050,000 $5,100,000 $0 $0
Original Cap Hit $4,166,666 $4,166,666 $0 $0
Contract Signing Bonus $0 $0 $0 $0
Contract Total Salary ($5,050,000) ($5,100,000) ($0) ($0)
Annual Buyout Cost $1,691,667 $1,691,667 $1,691,667 $1,691,667
ACTUAL CAP HIT New Jersey Devils logo $808,333 $758,333 $1,691,667 $1,691,667
Savings $3,358,333 $3,408,333 $-1,691,667 $-1,691,667

Active Contract

Signing Team New Jersey Devils logo
Signing Date September 11, 2017
Signing Status RFA
Agent Jason Davidson
Standard Contract | 6 Years $25,000,000 5.11% of cap space
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Cap Hit $4,166,666 $4,166,666 $4,166,666 $4,166,666 $4,166,666 $4,166,666
UFA
AAV $4,166,666 $4,166,666 $4,166,666 $4,166,666 $4,166,666 $4,166,666
Performance Bonuses $0 $0 $0 $0 $0 $0
Base Salary $2,500,000 $3,000,000 $4,675,000 $4,675,000 $5,050,000 $5,100,000
Signing Bonuses $0 $0 $0 $0 $0 $0
Total Salary $2,500,000 $3,000,000 $4,675,000 $4,675,000 $5,050,000 $5,100,000
Minors Salary $2,500,000 $3,000,000 $4,675,000 $4,675,000 $5,050,000 $5,100,000
Clauses
UFA Year
Buy It Out Buy It Out