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Buyout Scenario Question

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Old
06-26-2011, 05:58 PM
  #1
Hawkscap
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Buyout Scenario Question

Looking at the Olesz situation for a buyout, I need an opinion to see if my logic is right.

a) He is hurt and said he won't be back to camp.
b) He turns 26 Oct 11.

Can they buy him out now,
or do they have to wait until he reports to camp? And, then use this

11.18 Ordinary Course Buy-Outs Outside the Regular Period. Clubs shall have the
right to exercise Ordinary Course Buy-Outs outside the regular period for Ordinary
Course Buy-Outs in accordance with Paragraph 13(c)(ii) of the SPC. Each Club shall be
limited to no more than three (3) such buyouts over the term of this Agreement pursuant
to Paragraph 13(c)(ii) of the SPC. However, in the event that a Club has only one salary
arbitration hearing pursuant to Section 12.3(a) in a given League Year, such Club shall
not be entitled to exercise such a buyout outside the regular period for Ordinary Course
Buy-Outs. No Club shall exercise an Ordinary Course Buy-out outside the regular period
for any Player earning less than $1 million.


Being <26, the buyout makes him eligible for the 1/3 buyout instead of the 2/3 buyout, which is huge for the Hawks.

I can't get how arbitration factors into this.

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06-26-2011, 06:16 PM
  #2
LadyStanley
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Can't be bought out while injured.

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06-26-2011, 06:18 PM
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Hawkscap
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Quote:
Originally Posted by LadyStanley View Post
Can't be bought out while injured.

But when he comes back, can they still buy him outside the ordinary time frame due to that clause?

His buyout for this year is interesting due to his backloaded contract and sub 26 age.

Rostislav Olesz buyout from CapGeek.com

2011-12: $372,222
2012-13: -$227,778
2013-14: -$477,778
2014-15: $647,222
2015-16: $647,222
2016-17: $647,222

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Old
06-26-2011, 06:46 PM
  #4
kdb209
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Quote:
Originally Posted by topher42 View Post
But when he comes back, can they still buy him outside the ordinary time frame due to that clause?
No. "Ordinary Course Buy-Outs Outside the Regular Period" refer to the second round of Buyouts after arbitration cases are settled - per Paragraph 13(c)(ii) of the SPC.

The window for those Buy Outs is a 48 hr period 3 days after a teams last arbitration case is settled.

In order for the Hawks to have that option:

1. One of their RFAs must elect Player Elected arbitration.

2. Olesz will have to be medically cleared during that window in late July/early August.

Quote:
Originally Posted by CBA Article 11.18
11.18 Ordinary Course Buy-Outs Outside the Regular Period. Clubs shall have the
right to exercise Ordinary Course Buy-Outs outside the regular period for Ordinary
Course Buy-Outs in accordance with Paragraph 13(c)(ii) of the SPC. Each Club shall be
limited to no more than three (3) such buyouts over the term of this Agreement pursuant
to Paragraph 13(c)(ii) of the SPC. However, in the event that a Club has only one salary
arbitration hearing pursuant to Section 12.3(a) in a given League Year, such Club shall
not be entitled to exercise such a buyout outside the regular period for Ordinary Course
Buy-Outs. No Club shall exercise an Ordinary Course Buy-out outside the regular period
for any Player earning less than $1 million.
Quote:
Originally Posted by CBA Exhibit 1 - Standard Players Contract - Paragraph 13(c)
(c) The notice of termination shall be effective if given in the form attached as
Exhibit 20, with a copy faxed to the NHLPA and Central Registry as follows:
(i) beginning the later of June 15 or forty-eight (48) hours after the
conclusion of the Stanley Cup Finals and ending at 5:00 p.m. New York time on June 30; and

(ii) For Clubs who have Club or Player elected Salary Arbitration filings
pursuant to Article 12, within the forty-eight (48) hour period beginning on the third day
following the later of: (i) the Club's receipt of its last salary arbitration award; or (ii) settlement
of its last case (provided such award was received or such settlement occurred after 7:00 p.m.
New York time; awards or settlements that occurred or were received after 7:00 p.m. New York
time will be deemed to have occurred or received the following business day for purposes of this
provision).
edit: Here is the list of Hawks RFAs - I haven't checked if any are coming of ELS deals and not yet arbitration eligible. One would have to elect arbitration.

CHICAGO: Michael Frolik, RW; Viktor Stalberg, LW; Jacob Dowell, C; Chris Campoli, D; Brian Connelly, D; Alec Richards, G; Ivan Vishnevskiy, D [Signed in KHL]; Mathis Olimb, F [Signed in Sweden]; Evan Brophey, F; Nathan Davis, F; Rob Klinkhammer, RW.

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Old
06-26-2011, 07:24 PM
  #5
Hawkscap
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Campoli (or other arb right player) files and Olesz is medically clear then they can buy him out in that window.

I wonder if Bowman plays hardball with Campoli just to get taken to arbitration to pull this off.

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Old
06-27-2011, 10:23 AM
  #6
Teemu
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Where in the CBA is all of this medically-eligible stuff?

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Old
06-27-2011, 11:56 AM
  #7
mouser
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Quote:
Originally Posted by Teemu View Post
Where in the CBA is all of this medically-eligible stuff?
It's in the Standard Player Contract section 5

Quote:
(d) It is also agreed that if the Player, in the sole judgment of the Club's physician**, is
disabled and unable to perform his duties as a hockey Player by reason of an injury sustained
during the course of his employment as a hockey Player, including travel with his team or on
business requested by the Club, he shall be entitled to receive his remaining Paragraph 1 Salary
and Signing Bonuses due in accordance with the terms of this SPC for the remaining stated term
of this SPC as long as the said disability and inability to perform continue
but in no event beyond
the expiration date of the fixed term of this SPC, which fixed term shall in no event be deemed to
include any option period related to a playing season after the playing season in which the injury
occurred. In consideration of payment of such Paragraph 1 Salary, as well as payments made by
the Club to fund the Major Medical Plan pursuant to Article 23 of the Collective Bargaining
Agreement between the Member Clubs of League and the NHLPA, payments made by the Club
to provide Career Ending Disability Insurance pursuant to Article 23 of such Agreement and
other consideration, the Player does hereby covenant that in the event he files a claim under such
Career Ending Disability Insurance (unless such claim is not paid), he personally releases and
will release the Club, the NHL, NHLPA, all other NHL Clubs, and the servants, employees,
officers and agents of each of the above from any and every additional obligation, liability, claim
or demand whatsoever for such salary or arising out of such injury or the treatment thereof,
including without limitation liability in tort, and extending to all damages, whenever arising.
** There are other paragraphs allowing the player to seek a second opinion from a non-Club physician.

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Old
06-27-2011, 12:47 PM
  #8
Teemu
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Thanks (and you also answered the next question I was going to ask ). Gotta figure the Hawks will just play Olesz for a year and then bury him in Europe once Huet's contract expires.

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Old
07-05-2011, 08:41 PM
  #9
Hawkscap
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Stalberg and Campoli took the Hawks to arbitration.

Hopefullu Olesz will be cleared by the hearing and then the buyout will happen, hopefully.

If Bowman pulls this off, I have to give him major props for this.

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07-06-2011, 02:07 AM
  #10
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Quote:
Originally Posted by topher42 View Post
Stalberg and Campoli took the Hawks to arbitration.

Hopefullu Olesz will be cleared by the hearing and then the buyout will happen, hopefully.

If Bowman pulls this off, I have to give him major props for this.
No kidding. Imagine the sour grapes about the Hawks actually receiving additional cap space because of the buyout next year and the year after. It would be a nice advantage, especially the near 500K in 2013-14. Bowman's reputation is as a cap geek.

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07-06-2011, 11:41 PM
  #11
Paranoid Android
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Quick question about buyouts but didn't want to make a new thread:

Are players paid all money up front when the buyout occurs? Or are the pay checks spread out in some manor?

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07-07-2011, 12:49 AM
  #12
kdb209
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Quote:
Originally Posted by Paranoid Android View Post
Quick question about buyouts but didn't want to make a new thread:

Are players paid all money up front when the buyout occurs? Or are the pay checks spread out in some manor?
The buyout payments are paid in equal semi-monthly (just like NHL salary) installments over the buyout period (2x the remaining term of the contract).

Under the old pre-lockout CBA, a player had the option of a lump sum settlement from their team with a NPV based on the prime rate. That option no longer exists - however the player can get a lump sum advance through a 3rd party settlement.

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