Flames got rid of a coach for an incident long before his contract, but of course, that was a private employment contract and not a collectively bargained one. And I suspect the Flames paid a hefty severance - maybe the whole thing. The equivalent to firing Peters and paying a severance would be a buyout but you can't buy out Dube's contract.
Thing is for the Flames - he's taken a leave, not listed on the roster, he has only a half season left on his contract and presumably won't be re-signed. And the Flames have no need of his cap space. There's no real need to do anything.
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