Justin Abdelkader buyout calculator, cap hit impact

Justin Abdelkader Buyout Cap Implications

Birthdate February 25, 1987

Justin Abdelkader was bought by Detroit Red Wings logo 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 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 $6,333,333
Remaining base salary
($9,500,000 * 67% buyout multiplier)
.

3 years left in contract.
Buyout applied over 6 years
(2x years remaining on contract)

Annual buyout cost of $1,055,556
(Total buyout cost/6 years)

Justin Abdelkader buyout details 2020-2021 season
2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026
Remaining Base Salary
$9,500,000
$3,500,000 $3,000,000 $3,000,000 $0 $0 $0
Original Cap Hit $4,250,000 $4,250,000 $4,250,000 $0 $0 $0
Contract Signing Bonus $0 $0 $0 $0 $0 $0
Contract Total Salary ($3,500,000) ($3,000,000) ($3,000,000) ($0) ($0) ($0)
Annual Buyout Cost $1,055,556 $1,055,556 $1,055,556 $1,055,556 $1,055,556 $1,055,556
ACTUAL CAP HIT Detroit Red Wings logo $1,805,556 $2,305,556 $2,305,556 $1,055,556 $1,055,556 $1,055,556
Savings $2,444,444 $1,944,444 $1,944,444 $-1,055,556 $-1,055,556 $-1,055,556