: Salary Cap:
Contracts and Salary Cap (Contract Info in Posts #1 & #2)
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01-07-2013, 11:34 PM
Join Date: Dec 2003
a few things:
Amnesty buy-outs can be made in either the summers of 2013 or 2014.
On salary retention in trades: A team can now retain up to 50% of a playerís remaining salary in a trade and pick up the same proportion of the playerís cap hit. Salary retained from traded players can not exceed 15% of the upper cap limit and no more than three players can be traded with a portion of their salary being retained.
Cap benefit recapture charges is a little different than previously thought in regards for traded players. The teams will only be charged for the cap benefit (salary - cap-hit) from the years that player played with them divided over the number of years left on deal when he retires. Lebrun gives a thorough example:
To wit: letís say the Canucks trade Luongo soon. Luongo has played two years of his 12-year contract, the Canucks paying him $16.716 million in salary but only absorbing a $5.33 million cap hit each year. Thatís a cap savings of $6.056 million over two years so far for Vancouver. Under this new rule, should the Canucks trade him now and he retires with three years left on his contract, Vancouver would be charged that $6.056 million in cap savings over the final three years left on his deal from 2019 to 2022. However, letís say for argumentís sake Luongo gets traded to Toronto, the Maple Leafs also would be subject to cap penalties if Luongo retires before the end of his deal.
To wit, part 2: If Luongo were to play the next seven years of his deal in Toronto before retiring, the Leafs would be paying him $43.666 million in salary but only counting $37.31 million against the cap over those seven years, a cap savings of $6.356 million. So if Luongo retires with three years left on his deal (because his salary falls to $1.618 million in the 10th year and then $1 million in the last two years of the deal), the Leafs would get charged that $6.356 million on their cap spread evenly over the remaining three years of his deal.
Rangers will need to look long and hard about buying Richards out in the summer of 2014.
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