How exactly?! LTIRetirement means he doesn't count against the cap.
LTIR doesn't make a cap hit not count against the cap. It is a formula that raises the cap ceiling of a team to account for the injured player. It doesn't always result in the team getting back the entire cap hit in function, and there are a lot of downsides like not being able to bank cap space to the trade deadline, or not being able to use LTIR space on performance bonuses, which results in them rolling over to the next year. Puckpedia and Capfriendly outline this in a much greater and clearer detail than I can.
Here is what the buyout of Norris would look like.
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (OTT) |
2024-25 | $9,500,000 | $7,950,000 | $0 | $1,447,222 | $1,447,222 | $8,052,778 | -$102,778 |
2025-26 | $9,500,000 | $7,950,000 | $0 | $1,447,222 | $1,447,222 | $8,052,778 | -$102,778 |
2026-27 | $9,500,000 | $7,950,000 | $0 | $1,447,222 | $1,447,222 | $8,052,778 | -$102,778 |
2027-28 | $8,750,000 | $7,950,000 | $0 | $1,447,222 | $1,447,222 | $7,302,778 | $647,222 |
2028-29 | $7,850,000 | $7,950,000 | $0 | $1,447,222 | $1,447,222 | $6,402,778 | $1,547,222 |
2029-30 | $7,000,000 | $7,950,000 | $0 | $1,447,222 | $1,447,222 | $5,552,778 | $2,397,222 |
2030-31 | $0 | $0 | $0 | $1,447,222 | $1,447,222 | -$1,447,222 | $1,447,222 |
2031-32 | $0 | $0 | $0 | $1,447,222 | $1,447,222 | -$1,447,222 | $1,447,222 |
2032-33 | $0 | $0 | $0 | $1,447,222 | $1,447,222 | -$1,447,222 | $1,447,222 |
2033-34 | $0 | $0 | $0 | $1,447,222 | $1,447,222 | -$1,447,222 | $1,447,222 |
2034-35 | $0 | $0 | $0 | $1,447,222 | $1,447,222 | -$1,447,222 | $1,447,222 |
2035-36 | $0 | $0 | $0 | $1,447,222 | $1,447,222 | -$1,447,222 | $1,447,222 |
TOTAL | $52,100,000 | $47,700,000 | $0 | $17,366,667 | $17,366,667 | $34,733,333 | $12,966,664
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He would only be owed roughly 340k in cap over the first four seasons, so a negligible amount. In effect, it's really an 8 year buyout starting in 2028 where 7 years will be at 1.45M. While all dead cap does add up, when you consider that the cap ceiling could be in or close to the 100M+ range, that is a very small amount to get out of an 8M cap hit. It's also easier to plan around 1.45M in dead cap from 2028-2036 than it would be to have to keep them team in LTI from 2024 to 2030.
It's why teams have paid to dump contracts that are on their LTIR, so that they can come off of LTI. Montreal took the Dadonov contract to get out of the Weber contract, even know Weber was LTIRetired and not owed any real money (1M per season, partially covered by insurance). Vegas took Weber because they were already in LTI. 1 LTIR contract VS multiple ones doesn't make a difference, but teams want to try and avoid going into LTI at all costs.
The thing about Norris getting hurt now is that his buyout next summer is nowhere near as advantageous because he will be 26. Players 26 and over cost twice as much to buyout. If there was no market for him in a trade, and if the Sens were even thinking about buying him out, the timing of the injury night have saved him from losing something like 34 million dollars. It is why Cowen contested his buyout from the Leafs.