This is where the Jagr trade is going to hurt us....
View Single Post
01-07-2005, 11:53 AM
Join Date: Mar 2002
Location: New York
When a new CBA is agree to by the NHL and NHLPA,there will be a transition period.If they listen to Bettman instead of mocking him,he has always maintained those issues such as what happens if a team has a high payroll and they need to fit the team under a cap will be easily solved once the NHL gets "cost certainty"
If there is a new CBA this season,there is a good possibilty the cap will not begin until next season(05-06).If they agree to a CBA and decide to begin a 30 game season after the Super Bowl in February,there will not be enough time to make the proper moves to cut the payroll
1)Buyout the player and the cost of the buy out is not charged against the cap.Example-Rangers decide to buy out Holik in June-he has two more seasons remaining/$17.7 million in total.If the buyout is still 2/3,the Rangers owe Holik $11.682 million.That money is paid out over twice the term remaining on the contract which is 4 years so the Rangers owe Holik $2,920,500 per.None of the money paid to Holik for the buyout is charged against the cap so the Rangers clear $8.85 million off the cap
2)A team can trade a player to another team with the trading team picking up some of the salary but the trading team does not take a cap hit for their portion of money.Example-Rangers trade Holik to team B with the Rangers picking up $6 million of the $8.85 million,the Rangers would would be responsible for the $6 million but their cap would not be charged for that amount.Team B will be charged $2.85 million for Holik.They get Holik for under $3 million per
3)Dispersal Draft-Team A selects Holik in the dispersal draft and the Rangers pay his entire salary but the Rangers don't take the cap hit and neither does the team selecting Holik
In the Jagr deal,if the Rangers decide they have had enough of Jagr after the 2005-06 season,the Capitals would be responsible for buying out the remaining two years of the Jagr contract
View Public Profile
Find More Posts by RangerBoy