Tyler Parsons buyout calculator, cap hit impact

Tyler Parsons Buyout Cap Implications

Birthdate September 18, 1997

If Tyler Parsons 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 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 $245,000
Remaining base salary
($735,000 * 33% buyout multiplier)
.

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

Annual buyout cost of $122,500
(Total buyout cost/2 years)

Tyler Parsons projected buyout 2020-2021 season
2020-2021 2021-2022
Remaining Base Salary
$735,000
$735,000 $0
Original Cap Hit $735,000 $0
Contract Signing Bonus $0 $0
Contract Total Salary ($735,000) ($0)
Annual Buyout Cost $122,500 $122,500
ACTUAL CAP HIT Calgary Flames logo $122,500 $122,500
Savings $612,500 $-122,500