Teams have the ability to buy out contracts at a reduced cap hit from June 15 to 30 each year. They are also allowed two compliance buyouts in June 2013 and June 2014 that cost the team actual cash but have no salary cap consequences. CapGeek.com's buyout calculator simplifies the complicated formula by determining the actual salary and cap costs of these buyouts with a few clicks.
Deryk Engelland is 33
years old on the buyout date of June 15, 2015,
setting the buyout ratio at 2/3 and the total
buyout cost at $3,666,667, in addition to $250,000 in signing bonuses, spread over
4 years. His contract was originally valued at
$8,750,000 beginning in 2014
and ending in 2017, with
$5,500,000 remaining from the
buyout year forward (which does not include $250,000 in remaining signing bonuses that are paid regardless of buyout). The following is a season-by-season breakdown of the
buyout. A negative buyout cap hit indicates a credit.
BUYOUT CAP HIT
NOTE: Deryk Engelland receives an additional $250,000 in signing bonuses as per the schedule outlined in his contract. These signing bonuses are not included in the above "salary" and "buyout" columns. For more information, see "How do buyouts work?" in our FAQ.