Value of: the compliance buyout

[lamp9post]

I'm curious to see how people value our one remaining compliance buyout. Is it expected that we use it this summer on someone like Kaberle, or can we use it to facilitate a trade by taking on salary?

I think that the trade market with buyouts and the ability to retain salary will be very interesting and could benefit teams with deep pockets. Now I have no idea how willing Molson will be to pick up and buy out a bad contract to benefit (i.e. pick up a draft pick in the process), but the compliance buyout presents the option to do so.

I would like to present you with a hypothetical scenario:

Would you rather trade Kaberle this season (for whatever, say a 4th rounder) pick up $1.5 mil of his salary for next year and retain the buyout, or would you rather use the buyout and buy him out outright this summer?

Basically, is keeping the buyout worth retaining $1.5mil in dead cap space next year?

**The $ numbers and players mentioned above are for hypothetical purposes. I'm mainly interested in how you value the buyout in whatever terms you wish to use.

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[BaseballCoach]

I'm curious to see how people value our one remaining compliance buyout. Is it expected that we use it this summer on someone like Kaberle, or can we use it to facilitate a trade by taking on salary?

I think that the trade market with buyouts and the ability to retain salary will be very interesting and could benefit teams with deep pockets. Now I have no idea how willing Molson will be to pick up and buy out a bad contract to benefit (i.e. pick up a draft pick in the process), but the compliance buyout presents the option to do so.

I would like to present you with a hypothetical scenario:

Would you rather trade Kaberle this season (for whatever, say a 4th rounder) pick up $1.5 mil of his salary for next year and retain the buyout, or would you rather use the buyout and buy him out outright this summer?

Basically, is keeping the buyout worth retaining $1.5mil in dead cap space next year?

**The $ numbers and players mentioned above are for hypothetical purposes. I'm mainly interested in how you value the buyout in whatever terms you wish to use.

I had a different angle at the same phenomenon. Let's say a team that has money but not a lot of cap space wants to make a playoff run this year. They might want Kaberle to help their PP at the trade deadline. He won't cost much on the cap this year, and if that team does not have anyone they want to buyout already they can always use a compliance buyout to flush his cap hit for next season if he disappoints.

This increases our ability to move him at the deadline, and gives us a chance to use our second buyout on a different player, such as Bourque or even Gionta if he collapses this year and is no longer in our plans (though I doubt that happens seeing his good start this year).

 

[DAChampion]

It would take an intelligent and creative GM to use the compliance buyout as a trade piece, and there is no indication Bergevin fits the bill.

 

[PuckNorris]

What your basically doing is buying a draft pick for money. Good luck trying to convince an owner of that. Very creative though.

 

[Sorinth]

It wouldn't surprise me if one or two trades of that type happen though bear in mind rich owners are probably fielding cap teams so may need their own buyouts. I doubt we would do this though. Detroit would arguably be in the best position, they have cap space, rich owners, and a GM willing to innovate/bend the rules (One of the first to give front loaded retirement contracts)

 

[Sorinth]

What your basically doing is buying a draft pick for money. Good luck trying to convince an owner of that. Very creative though.

It's happened before. San Jose got a 1st rounder because they were willing to take on Malakhov's contract.

 

[Fish on The Sand]

It's happened before. San Jose got a 1st rounder because they were willing to take on Malakhov's contract.

That was different. That is because New Jersey absolutely had to get under the cap. No team will have that kind of leverage over another for the compliance buy outs.

 

[Sorinth]

That was different. That is because New Jersey absolutely had to get under the cap. No team will have that kind of leverage over another for the compliance buy outs.

True but from San Jose's perspective they were simply buying a draft pick

 

[Fish on The Sand]

True but from San Jose's perspective they were simply buying a draft pick

the Sharks didn't pay him a dime

 

[lamp9post]

I had a different angle at the same phenomenon. Let's say a team that has money but not a lot of cap space wants to make a playoff run this year. They might want Kaberle to help their PP at the trade deadline. He won't cost much on the cap this year, and if that team does not have anyone they want to buyout already they can always use a compliance buyout to flush his cap hit for next season if he disappoints.

This increases our ability to move him at the deadline, and gives us a chance to use our second buyout on a different player, such as Bourque or even Gionta if he collapses this year and is no longer in our plans (though I doubt that happens seeing his good start this year).

Yes, it certainly would allow trade deadline buyers to more easily pick up players that don't have expiring contracts. That, and the ability to retain salary.

I think if there was any way to move a player it would be preferable to using the compliance buyout even if it means retaining salary. It would be nice to have it at our disposal next summer if Bourque falls off the map or if it could be used to facilitate a trade.

 

[Blind Gardien]

Money is worth more than we usually think to most NHL teams. Despite what some of the contracts signed on July 1st would make us think. And I expect compliance buyout slots will be very plentiful... very few teams will exercise theirs, or be able to find a market for one.

As an NHL GM I would find better things to do than worry about creative uses of my buyout space. If a scenario arises which fits it, fine, easily considered at that point in time. More likely, just anticipate using our remaining one on one of the likely players, nothing fancy.

We're a team that is able to spend to the cap every year too, so we should make sure we don't clutter up that cap space with retained salary on traded players too. Keep what competitive advantage it gives us to spend to the cap, and pick up draft picks in other ways.