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Old 05-27-2013, 04:59 PM   #1
Jacks
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Default Buyouts and Recapture Penalties

Edit:
It appears that the calculator has been updated and the cap hits aren't nearly as bad as they appeared to be. See post #65
http://forum.calgarypuck.com/showpos...9&postcount=65



This was being discussed a bit in the Richards thread. There could be some shocking buyouts coming up due to the recapture penalties in the new CBA.

http://www.capgeek.com/recapture-calculator/
Quote:
Per the CBA reached in January 2013, teams receiving a “cap advantage” from existing long-term contracts (defined as seven years or more) will be penalized in the event the player retires or “defects” from the NHL before the contract expires. A team receives a “cap advantage” when the player’s actual salary exceeds his cap hit in a given year. Please note, contracts that fall under the "over-35" rule do not qualify for cap benefit recapture, the NHL has confirmed.
Who would have thought that Hossa might be bought out? Chicago may not have a choice. As we all know his contract is a joke and the last 4 years are at 1M per year. If/when he retires early Chicago will be hit with the following cap penalty.

Retirement year:
2017 = $4,593,750 x 4 years
2018 = $6,125,000 x 3 years
2019 = $9,187,500 x 2 years
2020 = $18,375,00 x 1 year

Brad Richards was just signed to a 9 year 60M contract 2 years ago. He has already been paid 24M for 2 years service. The last 3 years of this contract are at 1M per year. If/when he retires early the Rangers will be penalized.

Retirement year:
2017 = $5,666,667 x 3 years
2018 = $8,500,000 x 2 years
2019 = $17,000,000 x 1 year

If Richards gets bought out he may just have hit the biggest 2-3 year payday in hockey history. I'm glad these teams are going to be punished for these ridiculous contracts.

Last edited by Jacks; 06-02-2013 at 10:28 PM.
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