Joseph Veleno buyout calculator, cap hit impact


Joseph Veleno Buyout Cap Implications

Birthdate January 13, 2000

If Joseph Veleno was bought out prior to the 2020-2021 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 20 years old at the buyout giving him a 33% buyout multiplier.
Under 26 = 1/3 multiplier
26+ = 2/3 multiplier

The total buyout cost would be $555,000
Remaining base salary
($1,665,000 * 33% buyout multiplier)
.

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

Annual buyout cost of $138,750
(Total buyout cost/4 years)

Joseph Veleno projected buyout 2020-2021 season
2020-2021 2021-2022 2022-2023 2023-2024
Remaining Base Salary
$1,665,000
$832,500 $832,500 $0 $0
Original Cap Hit $925,000 $925,000 $0 $0
Contract Signing Bonus $92,500 $92,500 $0 $0
Contract Total Salary ($925,000) ($925,000) ($0) ($0)
Annual Buyout Cost $138,750 $138,750 $138,750 $138,750
ACTUAL CAP HIT Detroit Red Wings logo $231,250 $231,250 $138,750 $138,750
Savings $693,750 $693,750 $-138,750 $-138,750

Active Contract

Signing Team
Signing Date May 1, 2019
Agent Kent Hughes
Entry Level Contract | 3 Years $2,775,000 1.13% of cap space
2019-2020 2020-2021 2021-2022
Cap Hit $925,000 $925,000 $925,000
RFA
AAV $1,243,750 $1,243,750 $1,243,750
Performance Bonuses $212,500 $318,750 $425,000
Base Salary $832,500 $832,500 $832,500
Signing Bonuses $92,500 $92,500 $92,500
Total Salary $925,000 $925,000 $925,000
Minors Salary $70,000 $70,000 $70,000
Clauses
UFA Year
Buy It Out Buy It Out Buy It Out