07-24-2018, 01:47 PM
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#1
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First round-bust
Join Date: Feb 2015
Location: speculating about AHL players
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Caps sign Orpik (1 year, $1 million)
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07-24-2018, 01:54 PM
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#2
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Franchise Player
Join Date: Aug 2012
Location: Seattle, WA/Scottsdale, AZ
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This will be interesting.
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07-24-2018, 02:04 PM
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#3
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Scoring Winger
Join Date: Jul 2017
Location: Calgary
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Quote:
Originally Posted by DoubleK
This will be interesting.
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If you're implying cap circumvention, I don't think it'll be an issue. COL chose to buy out Orpik, not WSH.
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07-24-2018, 02:05 PM
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#4
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Scoring Winger
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Pretty hard not to think a side deal had been made prior to the trade. Impossible to prove but the optics are pretty poor.
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07-24-2018, 02:05 PM
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#5
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Franchise Player
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But WSH gave up assets to get rid of that contract, and COL bought Orpik out immediately after the trade. Smells pretty circumventilated to me.
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07-24-2018, 02:10 PM
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#6
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Franchise Player
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The league reportedly did have to step in and prevent the Lightning from doing this was Lecavalier. Yzerman wanted to trade him to Toronto, Toronto buy him out, and then they could re-sign him to a more cap friendly contract.
https://editorinleaf.com/2013/06/26/...and-lightning/
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07-24-2018, 02:10 PM
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#7
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Franchise Player
Join Date: Jul 2005
Location: SW Ontario
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Quote:
Originally Posted by Owen15
Pretty hard not to think a side deal had been made prior to the trade. Impossible to prove but the optics are pretty poor.
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Yup, pretty obvious this was a way to circumvent the cap but I don't see how anything can be done about it. Well played Washington.
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07-24-2018, 02:12 PM
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#8
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Scoring Winger
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Doesnt this fall under the Dean Mcammond rule?
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07-24-2018, 02:13 PM
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#9
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First round-bust
Join Date: Feb 2015
Location: speculating about AHL players
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Quote:
Originally Posted by Oling_Roachinen
The league reportedly did have to step in and prevent the Lightning from doing this was Lecavalier. Yzerman wanted to trade him to Toronto, Toronto buy him out, and then they could re-sign him to a more cap friendly contract.
https://editorinleaf.com/2013/06/26/...and-lightning/ |
I believe that would've been a compliance buyout, though. Changes things because then none of Lecavalier's old contract would've been on the books.
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07-24-2018, 02:13 PM
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#10
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Scoring Winger
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I'm curious if there were offers like a late first rounder for Grubauer that were turned down because the Caps valued the cap room more than the assets. That would be a slippery slope. Sort of like CRA's rules about tax avoidance, structuring things to avoid tax above all else.
Would probably have to be a lot more blatant than a second round pick to send an asset out of the division over a first rounder to send him within the division to someone like NYI.
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07-24-2018, 02:17 PM
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#11
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Franchise Player
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Quote:
Originally Posted by Owen15
I'm curious if there were offers like a late first rounder for Grubauer that were turned down because the Caps valued the cap room more than the assets. That would be a slippery slope.
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That slope has long been slipped on....
A lot of players have been traded as negative assets due to their caps and contract situations. Orpik was far from the first.
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07-24-2018, 02:18 PM
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#12
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Scoring Winger
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Quote:
Originally Posted by Oling_Roachinen
The league reportedly did have to step in and prevent the Lightning from doing this was Lecavalier. Yzerman wanted to trade him to Toronto, Toronto buy him out, and then they could re-sign him to a more cap friendly contract.
https://editorinleaf.com/2013/06/26/...and-lightning/ |
The main difference being that the league and Bettman had serious issues with contracts like Lecavalier's, long term contracts that were front loaded in order to reduce the AAV cap hit over a decade or more. They stopped the trade to make an example of Tampa. Orpik only has 1 year left on this contract. I think he only gets ~60% on a buyout, so he is accepting less money for the year after the buyout even with the new contract.
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07-24-2018, 02:31 PM
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#13
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Some kinda newsbreaker!
Join Date: May 2004
Location: Learning Phaneufs skating style
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Orpik:
Last year of contract:
$5.5 mil cap hit
$4.5 mil salary
Buyout pays him $3 million over 2 years and this contract gives him an additional $1 mil.
Net loss of $500k salary for Orpik, gets to stay with a cup winner, and the Capitals save $4.5 mil on the cap allowing them to keep one of the best d-men on the UFA market.
edit: brain fart about the performance bonuses. Probably games played which will make it no net loss for Orpik.
Last edited by sureLoss; 07-24-2018 at 02:35 PM.
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07-24-2018, 02:34 PM
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#14
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Scoring Winger
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Quote:
Originally Posted by sureLoss
Orpik:
Last year of contract:
$5.5 mil cap hit
$4.5 mil salary
Buyout pays him $3 million over 2 years and this contract gives him an additional $1 mil.
Net loss of $500k salary for Orpik, gets to stay with a cup winner, and the Capitals save $4.5 mil on the cap allowing them to keep one of the best d-men on the UFA market.
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He has another $500K in performance bonuses I believe to keep him whole.
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07-24-2018, 02:35 PM
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#15
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Scoring Winger
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I suppose there is a time value of money loss for getting the $3 million over two years instead of 1.
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07-24-2018, 02:46 PM
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#16
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Franchise Player
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Quote:
Originally Posted by Owen15
I suppose there is a time value of money loss for getting the $3 million over two years instead of 1.
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more than offset by the tax savings of spreading out the income over two years
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07-24-2018, 02:46 PM
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#17
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Franchise Player
Join Date: Feb 2007
Location: Calgary, AB
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The league lets teams trade injured players to Arizona - so they can get to the cap floor, other teams clear cap space, and insurance pays for the contract.
Not sure how this is any worse.
Team got assets for taking player, player gets bought out, player signs at cheaper contract.
Seems fair game to me.
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07-24-2018, 02:49 PM
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#18
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Scoring Winger
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Quote:
Originally Posted by Enoch Root
more than offset by the tax savings of spreading out the income over two years
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If there's a $1.5 million tax bracket...
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07-24-2018, 02:51 PM
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#19
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Scoring Winger
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Sorry Enoch, I see what you're saying...
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07-24-2018, 02:54 PM
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#20
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Franchise Player
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Quote:
Originally Posted by Owen15
If there's a $1.5 million tax bracket...
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well the top federal rate is $470k and the top rate in DC is at $1M, so there is some benefit to spreading it over two seasons.
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