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Zach Parise AND Ryan Suter (13 years, $7.5M Cap Hit) III
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01-08-2013, 12:36 PM
Join Date: Oct 2011
Originally Posted by
I thought they had front loaded contracts? Is that not grandfathered in to the new CBA?
They do have front loaded contracts, according to Pierre Lebrun(amongst other sources) they included a clause to punish teams that have long term front loaded(or back diving contracts). So contracts like Kovalachuck, Luongo, Parise and Suter. This is how Lebrun explains it.
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.
So, by my math. If Parise and Suter retire at Year 10 of their contracts when they are 37, the Wild will have benefited 19 Million dollars in cap space due to the back diving. That money would be split up over the remainder of the deal as a cap hit. 6.3 a year, each.
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