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+----- Thread: Buyout Guide (/showthread.php?tid=115)
Buyout Guide - Laimbeer40 - 05-25-2020
Step 1: Apply cap hits to all years (90/60/30 or 75/50/25).
Step 2: For future years subtract any cash already paid (up to max of cap hit).
Step 3: If accelerating to this season then subtract any cash already paid this season from this year's salary+all adjusted future cap hits.
If not accelerating to this season then treat this year in the same way as future years.
Post Deadline Example (75/50/25)
Danny Green $10m (2020)
10m, 10m, 10m, 10m
X-10m, -2m
Non-Accelerated Cap Hits:
2017: 0m (7.5-10)
2018: 3m (5-2)
2019: 2.5m
2020: 2.5m
Accelerated:
-Future year hits are 3m+2.5m+2.5m=8m
-This season's cap hit of 75% = 7.5m
Total Hit = 15.5m
THEN subtract any cash already paid this season (10m) =5.5m to be paid this season (thus must have at least 5.5m in cap room).
You cannot accelerate salary being paid in future seasons as negotiated in a trade. Thus if you are paying $8m on Dirk Nowitzki in 2021 as agreed upon in a trade, then that could not be paid off prior to 2021.
RE: Buyout Guide - Laimbeer40 - 07-26-2023
Step 1: Apply cap hits to all years (90/60/30 or 75/50/25).
Step 2: For future years subtract any cash already paid (up to max of cap hit).
Step 3: If accelerating to this season then subtract any cash already paid this season from this year's salary+all adjusted future cap hits.
If not accelerating to this season then treat this year in the same way as future years.
Post Deadline Example (75/50/25)
Danny Green $10m (2020)
10m, 10m, 10m, 10m
X-10m, -2m
Non-Accelerated Cap Hits:
2017: 0m (7.5-10)
2018: 3m (5-2)
2019: 2.5m
2020: 2.5m
Accelerated:
-Future year hits are 3m+2.5m+2.5m=8m
-This season's cap hit of 75% = 7.5m
Total Hit = 15.5m
THEN subtract any cash already paid this season (10m) =5.5m to be paid this season (thus must have at least 5.5m in cap room).
You cannot accelerate salary being paid in future seasons as negotiated in a trade. Thus if you are paying $8m on Dirk Nowitzki in 2021 as agreed upon in a trade, then that could not be paid off prior to 2021.