Michael Rasmussen buyout calculator, cap hit impact

Michael Rasmussen Buyout Cap Implications

Birthdate April 17, 1999

If Michael Rasmussen was bought 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 would be 22 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 $1,493,333
Remaining base salary
($4,480,000 * 33% buyout multiplier)
.

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

Annual buyout cost of $248,889
(Total buyout cost/6 years)

Michael Rasmussen projected buyout 2021-2022 season
2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027
Remaining Base Salary
$4,480,000
$1,100,000 $1,480,000 $1,900,000 $0 $0 $0
Original Cap Hit $1,460,000 $1,460,000 $1,460,000 $0 $0 $0
Contract Signing Bonus $0 $0 $0 $0 $0 $0
Contract Total Salary ($1,100,000) ($1,480,000) ($1,900,000) ($0) ($0) ($0)
Annual Buyout Cost $248,889 $248,889 $248,889 $248,889 $248,889 $248,889
ACTUAL CAP HIT Detroit Red Wings logo $608,889 $228,889 $-191,111 $248,889 $248,889 $248,889
Savings $851,111 $1,231,111 $1,651,111 $-248,889 $-248,889 $-248,889

Active Contract

Signing Team Detroit Red Wings logo
Signing Date July 22, 2021
Signing Status RFA
Agent Dave Cowan
Standard Contract | 3 Years $4,380,000 1.79% of cap space
2021-2022 2022-2023 2023-2024
Cap Hit $1,460,000 $1,460,000 $1,460,000
RFA
AAV $1,460,000 $1,460,000 $1,460,000
Performance Bonuses $0 $0 $0
Base Salary $1,100,000 $1,480,000 $1,900,000
Signing Bonuses $0 $0 $0
Total Salary $1,100,000 $1,480,000 $1,900,000
Minors Salary $1,100,000 $1,480,000 $1,900,000
Clauses
UFA Year
Buy It Out Buy It Out Buy It Out