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04-08-2013, 01:23 AM
Join Date: Apr 2012
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Originally Posted by mouser View Post
Nada. The buyout $ is paid out over the remaining years on the contract, based on the contracted salary for that season. The cap hit is spread out over 2x years using the CBA formula if it's an Ordinary Course Buyout, but the cash buyout amount follows the contract each year.

If the Canucks were to buyout Luongo this summer their cash outflow would be:

2013: $4.476m
2014: $4.476m
2015: $4.476m
2016: $4.476m
2017: $4.476m
2018: $2.255m
2019: $1.079m
2020: $0.668m
2021: $0.668m

If you believe in the Forbes Business of Hockey estimates that's more like 15% of Vancouver's current Operating Income for the next five years. And don't forget that the most important figure Net Income is much less than Operating Income after accounting for the other expenses. We could easily be talking 30-50% of Vancouver's net profits going bye-bye with a Luongo buyout.
Hah. Okay I was totally off on the details, thanks for the clarification. Either way, it's not a year of profit right out the window.

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