The buyout option is a lot more palatable when you consider the replacement cost.
Let's assume that if he is not bought out, OEL will play two mores seasons at 2LD, and two more seasons at 3LD.
And let's assume that if OEL is bought out, they'd essentially be paying another 2LD player for those two seasons to replace him at an asssumed cost of $6mm and two seasons of a 3LD at an assumed cost of $1mm.
[TABLE=collapse]
[TR]
[TD]Season[/TD]
[TD]OEL Buyout Cap hit[/TD]
[TD]Replacement Cap hit[/TD]
[TD]Combined Buyout + Replacement Cap hit[/TD]
[TD]OEL No Buyout Cap hit[/TD]
[TD]Savings/Cost[/TD]
[/TR]
[TR]
[TD]2023-24[/TD]
[TD]$146,667[/TD]
[TD]$6,000,000[/TD]
[TD]$6,146,667[/TD]
[TD]$7,260,000[/TD]
[TD]$1,113,333[/TD]
[/TR]
[TR]
[TD]2024-25[/TD]
[TD]$2,346,667[/TD]
[TD]$6,000,000[/TD]
[TD]$8,346,667[/TD]
[TD]$7,260,000[/TD]
[TD]($1,086,667)[/TD]
[/TR]
[TR]
[TD]2025-26[/TD]
[TD]$4,766,667[/TD]
[TD]$1,000,000[/TD]
[TD]$5,766,667[/TD]
[TD]$7,260,000[/TD]
[TD]$1,493,333 [/TD]
[/TR]
[TR]
[TD]2026-27[/TD]
[TD]$4,766,667[/TD]
[TD]$1,000,000[/TD]
[TD]$5,766,667[/TD]
[TD]$7,260,000[/TD]
[TD]$1,493,333 [/TD]
[/TR]
[TR]
[TD]2027-28[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]($2,126,667) [/TD]
[/TR]
[TR]
[TD]2028-29[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]($2,126,667)[/TD]
[/TR]
[TR]
[TD]2029-30[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]($2,126,667)[/TD]
[/TR]
[TR]
[TD]2030-31[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]($2,126,667)[/TD]
[/TR]
[/TABLE]
There's definitely pain on years 5-8 of the buyout, but the pain is minimal through years 1-4. The Canucks arguably are saving themselves cap hit and presumably replacing him with a more effective player each season--which ought to be worth far more than cap space...
Now that is just assuming that you think you are replacing OEL as a 2LD defender... What if you evaluation of him has dropped so much after this season that you think he is only capable of being a 2LD defender for one more season? and then a 3LD for the three seasons after that left on his contact?
[TABLE=collapse]
[TR]
[TD]Season[/TD]
[TD]OEL Buyout Cap hit[/TD]
[TD]Replacement Cap hit[/TD]
[TD]Combined Buyout + Replacement Cap hit[/TD]
[TD]OEL No Buyout Cap hit[/TD]
[TD]Savings/Cost[/TD]
[/TR]
[TR]
[TD]2023-24[/TD]
[TD]$146,667[/TD]
[TD]$6,000,000[/TD]
[TD]$6,146,667[/TD]
[TD]$7,260,000[/TD]
[TD]$1,113,333[/TD]
[/TR]
[TR]
[TD]2024-25[/TD]
[TD]$2,346,667[/TD]
[TD]$1,000,000[/TD]
[TD]$3,346,667[/TD]
[TD]$7,260,000[/TD]
[TD]$4,379,333[/TD]
[/TR]
[TR]
[TD]2025-26[/TD]
[TD]$4,766,667[/TD]
[TD]$1,000,000[/TD]
[TD]$5,766,667[/TD]
[TD]$7,260,000[/TD]
[TD]$1,493,333 [/TD]
[/TR]
[TR]
[TD]2026-27[/TD]
[TD]$4,766,667[/TD]
[TD]$1,000,000[/TD]
[TD]$5,766,667[/TD]
[TD]$7,260,000[/TD]
[TD]$1,493,333 [/TD]
[/TR]
[TR]
[TD]2027-28[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]($2,126,667) [/TD]
[/TR]
[TR]
[TD]2028-29[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]($2,126,667)[/TD]
[/TR]
[TR]
[TD]2029-30[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]($2,126,667)[/TD]
[/TR]
[TR]
[TD]2030-31[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]($2,126,667)[/TD]
[/TR]
[/TABLE]
And finally... what if you think that he has declined so much that as soon as next season he is only capable of playing 3LD minutes? Well, the buyout is obvious:
[TABLE=collapse]
[TR]
[TD]Season[/TD]
[TD]OEL Buyout Cap hit[/TD]
[TD]Replacement Cap hit[/TD]
[TD]Combined Buyout + Replacement Cap hit[/TD]
[TD]OEL No Buyout Cap hit[/TD]
[TD]Savings/Cost[/TD]
[/TR]
[TR]
[TD]2023-24[/TD]
[TD]$146,667[/TD]
[TD]$1,000,000[/TD]
[TD]$1,146,667[/TD]
[TD]$7,260,000[/TD]
[TD]$6,113,333[/TD]
[/TR]
[TR]
[TD]2024-25[/TD]
[TD]$2,346,667[/TD]
[TD]$1,000,000[/TD]
[TD]$3,346,667[/TD]
[TD]$7,260,000[/TD]
[TD]$4,379,333[/TD]
[/TR]
[TR]
[TD]2025-26[/TD]
[TD]$4,766,667[/TD]
[TD]$1,000,000[/TD]
[TD]$5,766,667[/TD]
[TD]$7,260,000[/TD]
[TD]$1,493,333 [/TD]
[/TR]
[TR]
[TD]2026-27[/TD]
[TD]$4,766,667[/TD]
[TD]$1,000,000[/TD]
[TD]$5,766,667[/TD]
[TD]$7,260,000[/TD]
[TD]$1,493,333 [/TD]
[/TR]
[TR]
[TD]2027-28[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]($2,126,667) [/TD]
[/TR]
[TR]
[TD]2028-29[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]($2,126,667)[/TD]
[/TR]
[TR]
[TD]2029-30[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]($2,126,667)[/TD]
[/TR]
[TR]
[TD]2030-31[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]$2,126,667[/TD]
[TD]-[/TD]
[TD]($2,126,667)[/TD]
[/TR]
[/TABLE]