Paul Martin buyout calculator, cap hit impact

Paul Martin Buyout Cap Implications

Birthdate March 5, 1981

Paul Martin was bought by San Jose Sharks logo out prior to the 2018-2019 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 37 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 $2,833,333
Remaining base salary
($4,250,000 * 67% buyout multiplier)
.

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

Annual buyout cost of $1,416,667
(Total buyout cost/2 years)

Paul Martin buyout details 2018-2019 season
2018-2019 2019-2020
Remaining Base Salary
$4,250,000
$4,250,000 $0
Original Cap Hit $4,850,000 $0
Contract Signing Bonus $0 $0
Contract Total Salary ($4,250,000) ($0)
Annual Buyout Cost $1,416,667 $1,416,667
ACTUAL CAP HIT San Jose Sharks logo $2,016,667 $1,416,667
Savings $2,833,333 $-1,416,667