Quote:
Originally Posted by 868904
I think the Flames owners are more likely to approve of a Lucic buyout than a Neal buyout because of the real dollars that will have to be paid.
I think owners care more about real money as opposed to the cap hit and at the end of the day, the owners are the ones who hold the real power in whether to buyout a player.
If the Flames buyout Lucic in the Summer of 2021 before the expansion draft, they will be adding about a $2 million cap hit NET for the next season when you factor in that Brouwer's $1.5 million cap hit will be off the books. Then in the year after, the cap hit gets bumped up to $4,885,000 but then after that, it's negligible at about $500,000 per year for two more years. So the second year after the buyout will hurt, but at that stage, the Flames will likely be rebuilding anyways as Johnny and Mony's contracts will be coming due.
In the Summer of 2021, Lucic can either take a buyout and get $7,833,333 or waive his NMC and get paid $9,000,000 for another two years. I guess it will come down to whether Lucic thinks he will still be able to make up the $1,166,667 as a free agent in the Summer of 2021.
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Yeah, I've been trying to figure out what the potential actual dollars costs of everything could be here too. I think the actual dollars really does count from the perspective of the owner more so than the cap obligations, and if the owner is getting value.
From
https://www.capfriendly.com/buyout-faq
Signing Bonus
Signing bonuses are paid to the player regardless of a buyout. Therefore, as explained in the buyout caphit formula above, signing bonuses are excluded in the equation when determining the total buyout cost, and are included in the AAV value when determining the remaining caphit.
Signing bonuses therefore decrease the buyout caphit savings. In the case of players with significant signing bonuses, such as David Clarkson, the remaining caphit decreases minimally. Due to this, Clarkson's contract has been referred to as a buyout-proof contract.
For example, after this season Lucic would theoretically be owed 13 million dollars. 4 million next season, 5 million the following year, and 4 million in the final year. Signing bonuses are 3, 2.5, 3.
So if I'm not mistaken if the Flames were to buy him out after this season it would still cost them 11.5 million, as the only reduction they would get is the base salary of 4.5 being reduced to 3, and the bonuses still being 8.5. Albeit, 25% of that cost would be attributed to the Oilers so Flames out 10.06 million in actual cash.
Neal on the other hand had no bonuses and was all base salary. So after this season it would be 11.5 to buyout the last 3 years of his contract.
If as you note it's the final 2 years of both players deals, than as you note it's 7.8333 total for Lucic with Flames share being 6.85. Neal would be 7.67.
The real savings to them is if neither player was bought out and the Flames took on 14 millions of dollars owed vs the Oiler's 25 if both players were to play out these deals. Leads me to believe that a buyout of this magnitude was not going to be an option.