Thread: Player Discussion: Brad Richards
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02-24-2013, 12:37 PM
  #441
BrooklynRangersFan
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Quote:
Originally Posted by BBKers View Post
Just running numbers
Not saying if they should use the option or not, yet...

Amnesty buyout for Brad Richards this year
7 years left
$36.000.000
Two thirds of amount to BR = $24.000.000
$1,714,286 per year paid out for 14 years

Amnesty buyout for Brad Richards next year
6 years left
$18.000.000
Two thirds of amount to BR = $24.000.000
$1,500,000 per year paid out for 12 years

$6.000.000 in total difference for Dolan to shell out...
Those numbers aren't quite right - although the buyout numbers are correct. Should be:

Amnesty buyout for Brad Richards this year
7 years left
$36.000.000
Two thirds of amount to BR = $24.000.000
$1,714,286 per year paid out for 14 years.

Amnesty buyout for Brad Richards next year
6 years left
$27.000.000
Two thirds of amount to BR = $18.000.000
$1,500,000 per year paid out for 12 years.

Quote:
Originally Posted by CM PUNK View Post
The lower buyout by waiting a year would be a key factor if not an amensty buyout and you had to worry about a cap hit. But it really doesn't save Dolan any $$ cause he needs to pay Richards $9 mil next year in order to save $6 mil over the next 12-14 years...
Very interesting point. It's actually $3MM CHEAPER to buy him out this summer. If you factor in time value of money, the savings are even higher.

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