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01-04-2013, 01:26 PM
  #844
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Quote:
Originally Posted by mbar View Post
Can someone clarify how buyouts would work?

If the a team excercised a buy out on, say, Gomez's contract. Does that mean it just comes out of the cap consideration and he's no longer on the team? Would he still get paid under the terms of his contract?

I always assumed a "buyout" was simply a tool for cap management.

If the above is true, why the NHLPA care if people with bad contracts were being bought out? They're still getting paid.

If they are not still getting paid, why on earth would the the NHLPA ever have suggested it in the first place?

Confused (not the first time).
Not positive about Gomez's contract - but let's just say that this is the remaining contract:

2013-14: $4M
2014-15: $2M
Total: $6M

Assuming a similar buy-out provision to the last CBA - MON could buy out Gomez for 66% of the remaining cash on his contract, ($6M x 66% = $4M, which would be spread out over twice the remaining contract term of 4 years). The REALLY important thing about this "amnesty buy-outs" is that they would not count against the Habs salary cap. Because it doesn't count against the cap, MON would then be able to pay an additional $7+M per year for NHLPA members.

As I understand it, the $4M in buy-out would count against the players HRR %, but that is reasonable from my perspective because those $'s are being paid to NHL members.

It should also be noted that all those "poor" players who are bought out will become UFA's and be able to sign another UFA contract. Given the limited talent pool available in the recent UFA markets, they won't have problems getting solid NHL contracts. I'd bet they'll at least be able to make up the 33% they "lost" in the buy-out process.

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