Value of: the compliance buyout
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01-26-2013, 11:39 PM
Join Date: Dec 2006
Originally Posted by
I'm curious to see how people value our one remaining compliance buyout. Is it expected that we use it this summer on someone like Kaberle, or can we use it to facilitate a trade by taking on salary?
I think that the trade market with buyouts and the ability to retain salary will be very interesting and could benefit teams with deep pockets. Now I have no idea how willing Molson will be to pick up and buy out a bad contract to benefit (i.e. pick up a draft pick in the process), but the compliance buyout presents the option to do so.
I would like to present you with a hypothetical scenario:
Would you rather trade Kaberle this season (for whatever, say a 4th rounder) pick up $1.5 mil of his salary for next year
the buyout, or would you rather use the buyout and buy him out outright this summer?
Basically, is keeping the buyout worth retaining $1.5mil in dead cap space next year?
**The $ numbers and players mentioned above are for hypothetical purposes. I'm mainly interested in how you value the buyout in whatever terms you wish to use.
I had a different angle at the same phenomenon. Let's say a team that has money but not a lot of cap space wants to make a playoff run this year. They might want Kaberle to help their PP at the trade deadline. He won't cost much on the cap this year, and
if that team does not have anyone they want to buyout already
they can always use a compliance buyout to flush his cap hit for next season if he disappoints.
This increases our ability to move him at the deadline, and gives us a chance to use our second buyout on a different player, such as Bourque or even Gionta if he collapses this year and is no longer in our plans (though I doubt that happens seeing his good start this year).
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