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12-10-2008, 02:35 PM
  #51
Ozymandias
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Quote:
Originally Posted by Nobak View Post
This info conflicted with what nhlscap.com said in its CBA FAQ so I dug deeper.

Take a look at 50.5(d)(iii), specifically A:


B says the years beyond the original contract are straightforward, they're equal to the yearly amount paid by the team for the buyout.

There are a few examples directly on the CBA after B. One of them even shows you could potentially get a negative cap hit from a buyout for a given year. That gets treated as a cap credit.

Based on all this, it seems like all buyouts are not equal. Buying out an evenly spread out contract effectively means getting 2/3 of the cap hit over double the amount of years. But buying out a front-loaded contract seems to lead to a bigger cap hit than 2/3 of the remaining cap hit and buying out a back-loaded contract seems to lead to a smaller cap hit than 2/3 of the remaining cap hit.

If I have gotten all of this right and the OpenOffice calculator I just whipped up is error-free, buying out Lecavalier with 3 years remaining would lead to cap hits of 4.45, 6.95, 7.45, .72, .72, .72 mil, respectively, over the following 6 years.

That's a total of 21.02, where I'd have expected 15.45.
Wow thanks. I stand corrected. Although it is a contradiction with article 50.9 which is less detailed.

I guess you could always send him down to the minors and deal with the repercussions if the cap space is missing, instead of buying him out.

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