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CDC STHS Hockey League (Season 2)


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Try this?

How do buyouts work?

Teams are entitled to buy out player contracts for a portion of the remaining value of the contract — paid over a period of twice the remaining length of the contract. Following are the buyout amounts:

  • Younger than age 26 at the time of buyout, 1/3 the remaining value

  • Age 26 or older at the time of the buyout, 2/3 the remaining value

The remainder of this explanation assumes the player was not 35 or older when he signed his contract (in which case a buyout saves the team financially but does not reduce the player's cap hit).

When a player is bought out, the team still takes a cap hit for the player over a period of twice the remaining length of the contract. The amount of the cap hit (by year) is determined as follows:

  1. Take the actual salary due for each remaining year

  2. Take the Averaged Player Salary (cap hit) for the current contract

  3. Calculate the buyout amount (as described above)

  4. Spread the buy-out amount evenly over twice the remaining years of the contract

  5. Take the number in No. 1 and subtract the number in No. 4. This is the "buyout savings."

  6. Take the cap hit from No. 2 and subtract the buyout savings from No. 5.

This calculation is done for each year, meaning the buyout cap hit is not necessarily the same for all years. It can even be negative, meaning a team can receive a credit.

Example:

James Wisniewski is 29 years old on the buyout date of June 15, 2013, setting the buyout ratio at 2/3 and the total buyout cost at $12,666,667 spread over 8 years. His contract was originally valued at $33,000,000 beginning in 2011 and ending in 2017, with $19,000,000 remaining from the buyout year forward. The following is a season-by-season breakdown of the buyout. A negative buyout cap hit indicates a credit.

James Wisniewski buyout from CapGeek.com

  • 2013-14: $1,083,333

  • 2014-15: $2,083,333

  • 2015-16: $2,083,333

  • 2016-17: $4,083,333

  • 2017-18: $1,583,333

  • 2018-19: $1,583,333

  • 2019-20: $1,583,333

  • 2020-21: $1,583,333

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I was trying to fiddle around with buyouts in STHS and there is no easy way to do it since we use a hard cap

The only way I could do it is

Ex: Steven Stamkos makes $7.5M per year

I could buy him out at 0% of his contract value that way he disappears from the team and I create a player named Released at $3.75M so that the 50% caphit is still with the team

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