Yes. In this case, Kane had already signed a new contract, so SJ could mae the argument that the only damages were the differences in contracts. If somehow the Avs terminated Nuke and he signed a new contract for 35.5 million, the argument could be made that no damages were done and no penelty would happen. But that seems very unlikely.
Not sure what having signed a new contract with the Oilers has anything to do with the fact that the league imposed practically ZERO cap penalty for the 3 years he had remaining on his deal.
For me, there are 2 separate things - one is the settlement where Nuke gets a bunch of cash or not - I don't give a rats ass if he gets all of it or none of it... And the CAP penalty - now that's the one I do care about.
For the Kane situation, there was a breach of contract, mutual agreement to terminate and then the league decided to give the Sharks a pass on the CAP penalty for the final 3 years on that contract.
I'd like to know why? ...and why would the Avs be subject to a multi-year CAP penalty - as some have suggested - in their case?