Date: Fri Apr 4 14:37:01 2008
Sender: Joshua MacOscar
I am probably going to cut my 19 million dollar QB in the EAFL now that we are
1-7. I understand how the buyout works compared to cutting him. What I don't
understand is how it will affect my finances for this season.
I don't want to buy his contract prior to the end of the season if the net
effect on my budget will be that I have less budget room. His buyout will be
11.4 million (if I understand it) and his salary is 9.7. So he will cost me
about 5 million in payroll for the rest of the season.
Does a buyout of this amount cancel out the benefit of a lower payroll?
Date: Fri Apr 4 14:48:10 2008
Sender: Joshua MacOscar
I have concluded from the archives that it will be worse for the finances this
season to do a buyout now, but better long term. I don't know if that is
compared to buying out during the post season though.
I guess I am looking for the formula for how buyouts count against budget.
Date: Sat Apr 5 12:43:37 2008
Sender: Josh Bennett
You pay all their bonuses up front but aren't penalized for the future.
Date: Sat Apr 5 23:04:28 2008
Sender: Lord Bremen
Buyouts count as fines. They don't affect your budget, but you lose actual
cash.
Date: Sun Apr 6 14:29:44 2008
Sender: Tomasz Radko
Rijfendilt to be cut... Sic transit gloria...
He has $19M/3y contract. Should you buy out him now, you would pay his left
bonus with 33% discount. 3*5.7=17.1. 2/3 of that is 11.4. I don't know if bonus
is prorated per game. If so then you would pay 9.5.
But you would get rid his $9.5M base salary (which _is_ game prorated), so you
would save 4.75. Your net cost would be 9.5-4.75=4.75.
Now suppose you would wait till the offseason. You would spend his base salary
(4.75) and his this season part of bonus (2.85). Then you would pay 2/3 of
11.4=$7.8M.
So it's not even close: buy out now. Waiting is good for teams which are close
to the minimum salary tax (then cutting don't save the money).
You may try one other thing: offer to give up Rijfendilt plus some sum of cash
(less than $4.75M) for free. There might be a team interested - playoff
contender with injured QB and lot of cash (to buy out Rijfendilt after the
playoffs).
Date: Sun Apr 6 15:19:11 2008
Sender: Joshua MacOscar
Thank you.
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