Thread: [News] Ilya Kovalchuk retiring
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Old 07-11-2013, 05:01 PM   #194
opendoor
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Quote:
Originally Posted by Tinordi View Post
That's not my understanding of how the recapture works.

The recapture penalty is applied to any team that benefits from it. If Ilya was traded to another team, they would be responsible for any difference between the salary and the cap hit.

Which is why the contract was toxic, any team trading for him would be assuming the fat-tail risk of him retiring at the end of the contract while New Jersey would have only been hit with the $250k that they're subjective to now.

Untradeable.
Especially the way it's structured. The first 3 years (which the Devils are being hit with) were $6M, $6M, and $11M salaries which mean they were only subject to a fairly modest $3M penalty.

Years 4 through 9 would've seen a cap benefit of $23M due to the ridiculous salaries to be paid out:

4: $11.3M
5: $11.3M
6: $11.6M
7: $11.8M
8: $10M
9: $7M

No one was going to willingly take that on regardless of how good he is.
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