Dion Phaneuf buyout calculator, cap hit impact

Dion Phaneuf Buyout Cap Implications

Birthdate April 10, 1985

Dion Phaneuf was bought by Los Angeles Kings logo 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 was 34 years old at the buyout giving him a 67% buyout multiplier.
Under 26 = 1/3 multiplier
26+ = 2/3 multiplier

The total buyout cost was $5,666,667
Remaining base salary
($8,500,000 * 67% buyout multiplier)
.

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

Annual buyout cost of $1,416,667
(Total buyout cost/4 years)

This contract had retained salary from a previous trade. The buyout costs, and savings were split between the teams as shown below
Dion Phaneuf buyout details 2019-2020 season
2019-2020 2020-2021 2021-2022 2022-2023
Remaining Base Salary
$8,500,000
$5,500,000 $3,000,000 $0 $0
Original Cap Hit $7,000,000 $7,000,000 $0 $0
Contract Signing Bonus $1,000,000 $2,500,000 $0 $0
Contract Total Salary ($6,500,000) ($5,500,000) ($0) ($0)
Annual Buyout Cost $1,416,667 $1,416,667 $1,416,667 $1,416,667
ACTUAL CAP HIT Los Angeles Kings logo $2,187,500 $4,062,500 $1,062,500 $1,062,500
Savings $3,062,500 $1,187,500 $-1,062,500 $-1,062,500
ACTUAL CAP HIT Ottawa Senators logo $729,167 $1,354,167 $354,167 $354,167
Savings $1,020,833 $395,833 $-354,167 $-354,167