Buyouts and Recapture Penalties

[Vinny01]

Originally Posted by ricardodw

so rather than taking a huge cap hit down the road each team will have a chance to buy these guys out at no cap penalty.

The players make out like bandits --- Richards gets paid 12M for his playing (82+20) 102 games in 2011-12 and 7M (12M prorated for 48 games) for 56 games in 2012-13
as a Ranger and then gets paid 14 instalments of 1.714M/year , another 24M.

That will mean he gets 43M for playing 158 hockey games (playoff bonuses not worth counting)..... that's $272,151 per hockey game

he scored 116 pts... over $370,000 per point

That is why they pushed for it so hard in the CBA negotiations

[browna]

Sorry if this is covered somewhere else...has the league clarified the buyout period? It used to be June 15-30th, and was under the impression that the amnesty buyouts would follow the same timeline.

Clearly, the Stanley Cup this year won't be done until at least a week after June 15th, and then the draft June 30th and Free Agency July 5th...so only a week for buyouts? Team's will need to know who they are going to buyout and who is available to pickup, so they will need budgets in place before UFA time.

[dammage79]

Originally Posted by browna

Sorry if this is covered somewhere else...has the league clarified the buyout period? It used to be June 15-30th, and was under the impression that the amnesty buyouts would follow the same timeline.

Clearly, the Stanley Cup this year won't be done until at least a week after June 15th, and then the draft June 30th and Free Agency July 5th...so only a week for buyouts? Team's will need to know who they are going to buyout and who is available to pickup, so they will need budgets in place before UFA time.

48 hours after the last game of the cup finals IIRC.

[browna]

Originally Posted by dammage79

48 hours after the last game of the cup finals IIRC.

Yeah that's what I thought, but there still isn't two weeks elapsing before UFA starts...so likely quite the hectic weekend with the draft in there as well.

[getbak]

Cap Geek has fixed their buyout calculator. It now works the way it should, giving proper credit for lower salary years to offset higher salary years, so the cap recaptured decreases the longer the player plays.

If a team has a net negative cap benefit over the length of the contract, they will not receive a credit, but single negative benefit years reduce the net benefit.


There is still one thing that I think will likely get clarified in the final CBA: Ensuring that the total penalty charged to all teams will not exceed the total benefit gained by all teams.

For example, if you look at Luongo: If he doesn't get traded and plays out every year of his contract except for the final season, the cap penalty charged against the Canucks will be $4.33M for one season because at that point, that would be the net benefit of his contract. If Luongo gets traded this summer and plays every year of his contract except for the final season, the cap penalty charged against the Canucks would be $7.43M and the penalty against his new team would be -$3.10M (which would be a net of $0). I expect that the wording of the CBA will clarify that the total penalty charged against the Canucks would be reduced to the $4.33M net benefit gained on the contract.

[powderjunkie]

Glad to hear that this is not as stupid as many thought it would be...even Kypreos jumped on this on HC@N last week.

If anyone is still confused, the credit statement essentially means that if a player had a backloaded contract and retired early, the team would not get extra cap space for the years they paid less salary than cap hit.

[Jacks]

Well that makes a lot more sense.

[kyuss275]

Bump:

"9:0 pm: Well, it seems the RDP era is over. Art Staple of NY Newsday has tweeted out that the NY Islanders will indeed place Rick DiPietro on waivers tomorrow in order to use their compliance buyout.

He will be paid $1.5 Million for the next 16 seasons and will not count against the cap"


Not a big surprise or maybe it is, because it involves Charles Wang spending money.

[Jacks]

Originally Posted by kyuss275

He will be paid $1.5 Million for the next 16 seasons and will not count against the cap"

Nice work if you can get it.