Derek Stepan buyout calculator, cap hit impact

Derek Stepan Buyout Cap Implications

Birthdate June 18, 1990

If Derek Stepan was bought out prior to the 2019-2020 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 28 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 $4,666,667
Remaining base salary
($7,000,000 * 67% buyout multiplier)
.

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

Annual buyout cost of $1,166,667
(Total buyout cost/4 years)

Derek Stepan projected buyout 2019-2020 season
2019-2020 2020-2021 2021-2022 2022-2023
Remaining Base Salary
$7,000,000
$5,000,000 $2,000,000 $0 $0
Original Cap Hit $6,500,000 $6,500,000 $0 $0
Contract Signing Bonus $0 $3,000,000 $0 $0
Contract Total Salary ($5,000,000) ($5,000,000) ($0) ($0)
Annual Buyout Cost $1,166,667 $1,166,667 $1,166,667 $1,166,667
ACTUAL CAP HIT Arizona Coyotes logo $2,666,667 $5,666,667 $1,166,667 $1,166,667
Savings $3,833,333 $833,333 $-1,166,667 $-1,166,667

Active Contract

Signing Team
Signing Date July 27, 2015
Signing Status RFA
Agent Matthew Oates
Standard Contract | 6 Years $39,000,000 7.98% of cap space
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
Cap Hit $6,500,000 $6,500,000 $6,500,000 $6,500,000 $6,500,000 $6,500,000
UFA
AAV $6,500,000 $6,500,000 $6,500,000 $6,500,000 $6,500,000 $6,500,000
Performance Bonuses $0 $0 $0 $0 $0 $0
Base Salary $7,000,000 $7,000,000 $6,000,000 $6,000,000 $5,000,000 $2,000,000
Signing Bonuses $1,000,000 $1,000,000 $1,000,000 $0 $0 $3,000,000
Total Salary $8,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $5,000,000
Minors Salary $8,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $5,000,000
Clauses NTC NTC M-NTC M-NTC
UFA Year
Buy It Out Buy It Out