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Why do buyouts take place?

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06-22-2009, 03:44 PM
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MSG the place to be*
 
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Why do buyouts take place?

Until this offseason, I didnt know it was possible to simply dump a veteran, overpaid player in the minors and have his cap number eliminated. So my question is why would a team every give a player a buyout and thus have to take on the cap hit? The only reason I can think of is if the team knows there are not going to approach the salary cap ceiling and they dont want the reputation of dumping veterans in the minors. So why do teams do it?

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06-22-2009, 03:45 PM
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Respect of the player, and not forcing him to play in the minors. I know that is why the Bruins bought out Glen Murray.

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06-22-2009, 03:47 PM
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Pointteen
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Cap Space

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06-22-2009, 03:47 PM
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also a team gets to say

"YEP--we screwed the pooch on that signing"

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06-22-2009, 03:50 PM
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GAGLine
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Some players have NMCs, which prevents them from being sent to the AHL.

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06-22-2009, 03:50 PM
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joolzie
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You dump the contract in the minors, you pay out all of the rest of the money due. You buy the player out, you only pay a percentage of it.

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06-22-2009, 03:51 PM
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Egil
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Quote:
Originally Posted by MSG the place to be View Post
Until this offseason, I didnt know it was possible to simply dump a veteran, overpaid player in the minors and have his cap number eliminated. So my question is why would a team every give a player a buyout and thus have to take on the cap hit? The only reason I can think of is if the team knows there are not going to approach the salary cap ceiling and they dont want the reputation of dumping veterans in the minors. So why do teams do it?
Money. You only pay 2/3 of the money over twice as long compared to dumping a player in the minors.

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06-22-2009, 03:52 PM
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Gentle Ben Kenobi
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It's the NHL's version of an abortion

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06-22-2009, 03:53 PM
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Quote:
Originally Posted by MSG the place to be View Post
Until this offseason, I didnt know it was possible to simply dump a veteran, overpaid player in the minors and have his cap number eliminated. So my question is why would a team every give a player a buyout and thus have to take on the cap hit? The only reason I can think of is if the team knows there are not going to approach the salary cap ceiling and they dont want the reputation of dumping veterans in the minors. So why do teams do it?
A buyout is when a team pays a fee to terminate a player's contract early. I believe you have to pay 2/3 the remaining salary on the contract averaged out over double the number of years left on the contract, and that amount does count against your salary cap. Teams generally do this when they are desperate to clear cap space, cannot afford to demote the player, or can't move the player per the CBA due to his age, or a NTC or NMC in his contract.

A demotion is when a veteran player with an expensive contract is sent to the minors. The team is still required to pay him the full contract salary, but it doesn't count against their cap. Teams that generally operate well below the cap ceiling don't do this, as they usually are on a budget and can't afford to leave so much money in the minors.

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06-22-2009, 03:53 PM
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Feds on D
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Most owners aren't willing to pay a big chunk of cash out every year to a player that is contributing **** to his team, to make it short.

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06-22-2009, 04:06 PM
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Quote:
Originally Posted by Saugus View Post
A buyout is when a team pays a fee to terminate a player's contract early. I believe you have to pay 2/3 the remaining salary on the contract averaged out over double the number of years left on the contract, and that amount does count against your salary cap. Teams generally do this when they are desperate to clear cap space, cannot afford to demote the player, or can't move the player per the CBA due to his age, or a NTC or NMC in his contract.

A demotion is when a veteran player with an expensive contract is sent to the minors. The team is still required to pay him the full contract salary, but it doesn't count against their cap. Teams that generally operate well below the cap ceiling don't do this, as they usually are on a budget and can't afford to leave so much money in the minors.
In addition AHL teams are limited in the number of overagers on their rosters

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Old
06-22-2009, 04:10 PM
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Coach John McGuirk
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Because of players with contracts that resemble Redden/etc.

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Old
06-22-2009, 04:25 PM
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Buddy The Elf
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Originally Posted by Little Bunny Foo Foo View Post
It's the NHL's version of an abortion
But you pay the girl 2/3's of her future earnings instead of just buying her an egg mcmuffin and calling it a day.


Last edited by Buddy The Elf: 06-22-2009 at 04:37 PM.
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Old
06-22-2009, 04:26 PM
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Butch 19
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Quote:
Originally Posted by Saugus View Post
Teams generally do this when they are desperate to clear cap space, cannot afford to demote the player, or can't move the player per the CBA due to his age, or a NTC or NMC in his contract.
... or some "Teams generally do this when" said player under contract SUCKS much more than previously thought humanly possible; and even at a LOW salary they are not worth the money, let alone at a MUCH HIGHER salary that they are actually signed for (e.g. Dan Cloutier)

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Old
06-22-2009, 04:52 PM
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Not all teams spend to the cap.

It's alot easier to swallow paying 2/3 of the salary, or 1/3 if the player is 26 or younger, over two years then it is paying 100% of the salary for the player to play in the minors.

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