What Will Happen With Luongo?
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04-08-2013, 01:23 AM
Join Date: Apr 2012
Originally Posted by
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:
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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