Luongo Talk: The Final Countdown...?
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01-07-2013, 11:26 AM
Join Date: Aug 2006
Originally Posted by
From James Mirtle's twitter
Can 100% confirm the new CBA will include the cap benefit recapture formula. It will apply to existing deals "in excess of six years."
So, assuming that this is the same cap benefit recapture that had originally been mooted, then the Canucks will ultimately be on the hook for Luongo's cap hit if he ever decides to retire prior to his contract expiring.
If anything, it takes the risk away from acquiring such a long-term contract and puts it back on the Canucks. This raises his trade value in that sense.
Can you list the Cap Benefit Recapture formula?
There is a clause where teams can pay for a part of the existing contract for a player, so as to not burden the destination team with a portion of the deal, but this is an option to the Canucks, not a detriment.
“We are proposing that all years of existing long-term contracts in excess of five (5) years be counted against a Club's Cap regardless of whether or where a Player is playing. While such contracts (and Cap charges) can be traded during their terms, in the event a Player subsequently retires or ceases to play, the effective Cap charge would revert to the Club that originally entered into the contract.”
Ruh roh. Canucks stuck with the back end of Luongo's deal.
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