James Neal buyout calculator, cap hit impact

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James Neal Buyout Cap Implications

Birthdate September 3, 1987

James Neal was bought by Edmonton Oilers logo 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 was 33 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 $7,666,667
Remaining base salary
($11,500,000 * 67% buyout multiplier)
.

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

Annual buyout cost of $1,916,667
(Total buyout cost/4 years)

James Neal buyout details 2021-2022 season
2021-2022 2022-2023 2023-2024 2024-2025
Remaining Base Salary
$11,500,000
$5,750,000 $5,750,000 $0 $0
Original Cap Hit $5,750,000 $5,750,000 $0 $0
Contract Signing Bonus $0 $0 $0 $0
Contract Total Salary ($5,750,000) ($5,750,000) ($0) ($0)
Annual Buyout Cost $1,916,667 $1,916,667 $1,916,667 $1,916,667
ACTUAL CAP HIT Edmonton Oilers logo $1,916,667 $1,916,667 $1,916,667 $1,916,667
Savings $3,833,333 $3,833,333 $-1,916,667 $-1,916,667