Salary Cap: Contracts and Salary Cap (Contract Info in Posts #1 & #2)

[AlternateSideParking]

If Redden has any pride he puts his personal feelings aside, sacks up and earns the 6th d-man.

Anything but Bickel IMO.

 

[Tawnos]

Yeah, but we're still unclear if you will be able to use the amnesty in the summers of 2013 and 2014, or just 2013.

Or are we. Of course, we've seen plenty of reports on both. Most recently:

James Mirtle ‏@mirtle

Teams can use the compliance buyouts in summer of either 2013 or 2014. They function like other buyouts: Players receive two-thirds of $$$

 

[Leetch3]

Doubt you'll be able to do that.

obviously we are just guessing here until the details come out...but lets say you can't trade away $4 mil of dead cap space from richards, but you can trade for a $7 mil player for only a $3 mil cap hit. it nets out to the same thing basically.

 

[Thirty One]

Or are we. Of course, we've seen plenty of reports on both. Most recently:

Lebrun said, as recently as yesterday:

Teams will have up to two compliance buyouts to use prior to the 2013-14 season but not before this June.

So it's still very unclear to me.

 

[The Gloaming]

Lebrun said, as recently as yesterday:



So it's still very unclear to me.

Nvm.

 

[Thirty One]

Another one says that amnesty buy-outs will be available for two summers. But it is Brian Lawton:

Amnesty or compliance buy-outs as we all know are not available this season but available in both 2012/13 & 2013/14. 2 maximum.....lots more

 

[Crease]

No to both.

Early indications were that you could assume a portion of the cap hit relative to the salary you're paying.

Minor nit, but it appears to be the other way around.

You specify the % of Cap charge you are willing to retain, take that cap hit for each year left on the deal, and reimburse the counterparty the same % in actual salary obligations remaining on the contract.

 

[Thirty One]

Lawton giving a lot more details:

More specialty rules with regard to buy-outs emerging as clubs will no longer be able to buy out players earning 2.75 or less who were not..(cont) on a clubs reserve list as of or prior to Trade Deadline. That dovetails with the already known can not walk away from Salary Arb awards... less than 3.5 million total. Big change with regard to players that have clubs file for salary award are still eligible for an offer. less than 3.5 million total. Big change with regard to players that have clubs file for salary award are still eligible for an offer (cont) an offer sheet. Call this the abolishment of the summer with Weber and Parise who were boxed out of a group 2 offer by clubs filing for arb

 

[Made Dan]

Brian Lawton ‏@brianlawton9
Performance bonus cushion of 7.5% will remain but it will no longer be counted to help clubs get to the floor or minimum salary!

 

[Crease]

Good stuff guys. Will add to the compilation on the BoH board.

 

[RangerBoy]

The NHL had proposed retaining up to $5M and 2 SPCs in their October proposal.

$9.6M can be retained with the $64.3M cap. Its money on the cap. Money in the system.

 

[RangerBoy]

Brian Lawton ‏@brianlawton9
Performance bonus cushion of 7.5% will remain but it will no longer be counted to help clubs get to the floor or minimum salary!

The PA requested the latter. The NHL gave it to them. Some of the NHL owners hate that.

 

[Crease]

If Elliotte Friedman is right about the Cap Benefit Recapture program affecting both teams (not just the originator of the contract) in the event a player is traded and retires early, Rangers could consider trading him instead of buying him out.

http://www.cbc.ca/sports/hockey/opinion/2013/01/new-cba-doesnt-hurt-roberto-luongo.html

 

[The Gloaming]

The NHL had proposed retaining up to $5M and 2 SPCs in their October proposal.

$9.6M can be retained with the $64.3M cap. Its money on the cap. Money in the system.

What do they mean by "retain?"

 

[Crease]

What do they mean by "retain?"

A team can trade a player and agree to share part of the player's cap hit with the other team.

Example:

Rangers could trade Richards to Phoenix and agree to retain 50% of his cap hit. Rangers would incur a 3.33M Cap charge each year while Richards plays in Phoenix. Phoenix would incur a 3.33M Cap charge each year while Richards plays in Phoenix. And the Rangers would also send Phoenix a check every year for 50% of what Phoenix paid to Richards.

Edit: The above example might not be within the restrictions of the clause because the Rangers would be retaining in excess of 3M. I've seen some sources report that the most they can retain is 3M per player. The general point stands though.

 

[The Gloaming]

A team can trade a player and agree to share part of the player's cap hit with the other team.

Example:

Rangers could trade Richards to Phoenix and agree to retain 50% of his cap hit. Rangers would incur a 3.33M Cap charge each year while Richards plays in Phoenix. Phoenix would incur a 3.33M Cap charge each year while Richards plays in Phoenix. And the Rangers would also send Phoenix a check every year for 50% of what Phoenix paid to Richards.

Thank you.

Very interesting to see what Sather does in trades with this new addition.

Also, can you technically get a floor team to retain part of a contract, while not trading the player away?

 

[Tawnos]

Thank you.

Very interesting to see what Sather does in trades with this new addition.

Well, his track record is already good. He got Washington to take Anson Carter and continue paying half of Jagr's contract. Of course, there was no cap then and Jagr was underachieving with the Caps, but still.

 

[UAGoalieGuy]

This new provision could make trade deadlines more interesting.

 

[Thirty One]

Lebrun clarifies a few things:

Amnesty buy-outs can be made in either the summers of 2013 or 2014.

On salary retention in trades: A team can now retain up to 50% of a player’s remaining salary in a trade and pick up the same proportion of the player’s cap hit. Salary retained from traded players can not exceed 15% of the upper cap limit and no more than three players can be traded with a portion of their salary being retained.

Cap benefit recapture charges is a little different than previously thought in regards for traded players. The teams will only be charged for the cap benefit (salary - cap-hit) from the years that player played with them divided over the number of years left on deal when he retires. Lebrun gives a thorough example:

To wit: let’s say the Canucks trade Luongo soon. Luongo has played two years of his 12-year contract, the Canucks paying him $16.716 million in salary but only absorbing a $5.33 million cap hit each year. That’s a cap savings of $6.056 million over two years so far for Vancouver. Under this new rule, should the Canucks trade him now and he retires with three years left on his contract, Vancouver would be charged that $6.056 million in cap savings over the final three years left on his deal from 2019 to 2022. However, let’s say for argument’s sake Luongo gets traded to Toronto, the Maple Leafs also would be subject to cap penalties if Luongo retires before the end of his deal.

To wit, part 2: If Luongo were to play the next seven years of his deal in Toronto before retiring, the Leafs would be paying him $43.666 million in salary but only counting $37.31 million against the cap over those seven years, a cap savings of $6.356 million. So if Luongo retires with three years left on his deal (because his salary falls to $1.618 million in the 10th year and then $1 million in the last two years of the deal), the Leafs would get charged that $6.356 million on their cap spread evenly over the remaining three years of his deal.

Rangers will need to look long and hard about buying Richards out in the summer of 2014.

 

[Thirty One]

Trading Richards would lead to a big cap hit if he retired early. If they traded him in two years, and he retires with three years left, they would have an $11 million recapture charge spread out over three years. $3.67M per. It will go up the longer they wait to trade him too.

2014 buy-out carries no cap implications.

 

[Kane One]

I don't think we should buy out or trade Richards. The only season that would make sense for him to retire after would be after 2016-17. In 2016-17, he makes $7MM. After that season, he will make $1MM for the next three seasons. He would be 37 years old.

If he retires after that year, his cap hit would be $1,222,222, correct? ****. I don't think I was right.

Forget everything I just said. If he retired after the year I just mentioned, I believe his cap hit would be $5,666,667 in each of the last three years.

 

[Beacon]

A team can trade a player and agree to share part of the player's cap hit with the other team.

Example:

Rangers could trade Richards to Phoenix and agree to retain 50% of his cap hit. Rangers would incur a 3.33M Cap charge each year while Richards plays in Phoenix. Phoenix would incur a 3.33M Cap charge each year while Richards plays in Phoenix. And the Rangers would also send Phoenix a check every year for 50% of what Phoenix paid to Richards.

Edit: The above example might not be within the restrictions of the clause because the Rangers would be retaining in excess of 3M. I've seen some sources report that the most they can retain is 3M per player. The general point stands though.

I think I understand this, but let me just be very clear here because it sounds too good to be true.

The Rangers can acquire Jagr from Dallas with a cap hit of only $2,255 million with the Stars paying for the rest. This would allow the stars to get a greater return, while allowing the Rangers more room under the cap. If they can find a team in a true rebuild mode, they could acquire a few very useful pieces this way.

A team might decide to sacrifice money and present cap space in return for getting a first rounder rather than a second rounder.

 

[Beacon]

If the Rangers buy out Richards in 2014, he will have earned over $15.5 annually. Not bad making $47 for 3 years of play. Better deliver us the Cup for this kid of money.

 

[RangerBoy]

Kevin Allen of USA Today confirms the minimum $64.3M cap for 14-15 and beyond

Its in the chart

2014-15 and beyond
Range would be +/- 15% oft he adjusted midpoint. Upper limit can't drop below $64.3M

http://www.usatoday.com/story/sports/nhl/2013/01/07/nhl-players-mad-dash-home/1814083/

 

[RangerBoy]

Still no word on the plans for Wade Redden. In September,the Rangers told Redden to stay home and not report to Whale camp. They were afraid of an injury preventing them from buying him out. The Rangers also saved money by not paying Redden during the lockout. The fear of injury is still there. Don Meehan was supposed to speak with Slats about Michael Del Zotto yesterday. Meehan also represents Redden. Mark Guy is DZ's agent. Guy works for Meehan.