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02-25-2013, 01:43 AM
Join Date: Jan 2006
Location: Bialystok, Poland
Regarding an Amnesty buyout of Richards after this season
Took a look into this
Out of a business standpoint
If - as some people suggest - the Rangers were to buyout Richards after THIS SEASON - then the following consequences would actually take place from a payroll perspective .
Richards would then have played one full and one lockout season for The Rangers. What would then be the cost?
Salary 2011/2012 = $12,000,000 (incl $10,000,000 in signing bonus)
Salary 2013 season (prorated) = ~ $2,341,463
Salary 2013 signing bonus (paid out entirely without deduction for prorated season or escrow) = $8,000,000
TOTAL SALARY COST = $22,341,463
AMNESTY BUYOUT COST = 24,000,000 (two thirds of $36,000,000 remaining money on contract spread out over 14 years)
TOTAL COST FOR BARELY 2 SEASONS OF PLAY BY BRAD RICHARDS = $46,341,463
COST PER SEASON = $23,170,731.50
Now if I were Jim Dolan, Glen Sather or even John Tortorella, this might become a bit unsettling, to say the least. No? This kind of bad ROI is almost unheard of and follow the money trail... yeah - those of you that have been involved in business know how it usually works here.
I therefore think that the amnesty buyout of Richards - if it comes at all - would come after 2013/2014 season
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