Trade Speculation/Be a GM Thread
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03-24-2013, 09:35 AM
Join Date: Sep 2007
Originally Posted by
that sounds like a horrible rule. guess it will prevent or at least make gms think twice about handing out stupid contracts
The rule was put in place basically as a potential punishment for teams that took advantage of the loophole in the prior cba and handed out heavily front loaded contracts. Those are the only contracts where it's an issue. So Luongo, Richards, Hossa, Kovalchuk. Those types of deals.
In the first 6 years of Richards' contract, he makes 12 mil, 12 mil, 9 mil, 8.5 mil, 8.5 mil and 7 mil. His cap hit is 6.67 mil. If he were to retire after the 6th year, we would have paid him an average of 9.5 mil per year, but saved almost 3 mil per year on the cap. That's about 17 mil in cap savings. The recapture rule would make us repay that.
Even if Richards is traded to another team and then retires, we'd still be on the hook for a good portion of that penalty based on the years he played here and the cap savings we got. That's why most people believe that we will use our 2nd amnesty buyout on Richards, either this summer or next. More likely next summer IMO.
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