Luongo Talk: The Final Countdown...?
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01-07-2013, 12:17 PM
Ronning On Empty
Join Date: Aug 2006
Originally Posted by
Honestly I don't think it's a huge concern for the canucks. It would certainly suck but I think 7 years or so from now that cap hit charge isn't going to be that bad given the cap will have likely increased significantly by then.
From the way Mirtle described it:
If Luongo were to retire before the final three years of his contract he would have been paid $60.4 mil of his $64 mil contract. That averages to $6.71 mil a year for those first 9 years of the deal.
The cap hit for Luongo is ~$5.3 mil for the entirety of his contract thanks to the backdiving years.
THe recapture formula would take the money saved over the first 9 years as:
Money saved = 9* (6.71mil - 5.3 mil) = 9*1.38mil = $12.42 mil
This would be spread over the remaining years of the contract that weren't played or a $4.14 cap hit to the canucks those years.
Essentially it would be like carrying a deadweight like Ballard. Well really given the increased cap by that time it would be like a useless $2.5-3 mil player. It hurts but it isn't terrible.
Note: this was based on the example Mirtle gave in December. I do not know how the formular may have changed or if he was correct.
edit: looks like I was late to the party but we all have the smae ~4 mil cap hit.
But if you "own" the contract as arsmaster describes, why not buy it out? Or like I said, use it to bump up against the cap and then proceed to take advantage of LTIR?
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