June 15-30 NHL Contract Buyout Period
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06-07-2006, 01:49 PM
Join Date: Jan 2005
Originally Posted by
Is the lockout year included and what about the rollback?
Let's use Aaron Miller as an example.
In 2003, he signed a 4 year contract for $3.5M per season.
He made $3.5M in 2003-04, was slated to make $3.5M for 2004-05, made $2.66M in 2005-06, and is slated to make $2.66M in 2006-07.
If the Kings buy him out, what will be the cap hit for the Kings?
You can ignore anything before the lockout. Existing contracts after the lockout were rolled back the 24% and then averaged over the remaining post-lockout years.
In your Aaron Miller case - ignore the $3.5M in '03-'04 and the missed lockout season, and just average out the remaining years ($2.66M in '05-'06 and '06-'07, boy that was easy - $2.66M). If the Kings buy him out this offseson, since the actual dollars paid ($2.66M for '05-'06) match the averaged contract amount, there is no need to make any adjustments, so the buyout amount would be 2/3 x $2.66M (remaining salary) paid out over 2 years (2x the remaining term) = $890K/yr in '06-'07 and '07-'08.
edit: with no rounding it comes to $1,773,333.33 over 2 years = $886,666.66 / yr.
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