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Wang will not buyout DiPi because he's a penny pinching *****, but it would sure make this team more attractive to a potential buyer I would think.
The team would save money in the long run by cutting their losses and buying him out. Looks like a real possibility now. Would be penny wise and pound foolish not to do buy him out.
The team would save money in the long run by cutting their losses and buying him out. Looks like a real possibility now. Would be penny wise and pound foolish not to do buy him out.
That is the keyword. Wang could care less about "the team", it's all about him saving every nickel and dime as he inches closer to selling the team.
That is the keyword. Wang could care less about "the team", it's all about him saving every nickel and dime as he inches closer to selling the team.
But the buyout would save him money too. The buyout would be (I believe) 2/3 of his salary spread over twice the length of the contract. So, Wang would only be paying 1/3 of his salary for the time until he sells. The new owner would also end up paying less, plus the money would be discounted due to the length of the payout.
Wang will not buyout DiPi because he's a penny pinching *****, but it would sure make this team more attractive to a potential buyer I would think.
Just my $.02:
1) If he's buried in the minors, he collects his $4.5M, and Wang gets credit for $3.6M of that against the salary cap.
2) If he's bought out (not with an amnesty buy-out), RDP collects approximately $1.5M per year for the next 18 years (2031!) and Wang gets credit for that against the cap. This actually saves Wang about $13.5M over the remaining term of the contract (and more if you consider the NPV of delaying the payment stream).
While I feel for RPD, because his luck with injuries was attrocious, collecting $1.5M per year for the next almost 20 years is a pretty nice "golden parachute"!
so why not claim him now, buy him out in the summer and then sign him to a cheaper contract?
or can teams not buy out a player they picked up on waivers?
It would allow the islanders to keep their buyout and use it on someone else? hah
RDP has something like $40M left on his contract. The buy-out amount of that is 66%, so do you honestly think that anyone is going to sign up for paying $25+M to RDP? For a guy who has struggled in the back-up role? Really?!?
They know that nobody will claim him...he has a save pct well under .900 and a GAA above 3. He will back up in Bport until he is either bought out or retires due to an injury.
My guess is they think he will get more playing time in the AHL and will be more likely to reinjure himself into retirement there instead of playing once a week. Plus isles have back to back Sat and Sunday and want to have a shot at both games.
Call me crazy - but it's unlikely that anyone retires and leaves $40M still on the table. RDP will keep trying to play until Wang decides to buy him out (and I don't blame RDP one bit for doing that).
But the buyout would save him money too. The buyout would be (I believe) 2/3 of his salary spread over twice the length of the contract. So, Wang would only be paying 1/3 of his salary for the time until he sells. The new owner would also end up paying less, plus the money would be discounted due to the length of the payout.
But it would be counted on the cap for twice as long, correct? The odds of DiPi retiring before his contract is up are marginally high. Having his reduced cap on the books for 20 years or so would be worse than 9 years at 4.5M with the possibilty of retirement for a potential buyer I would think.
Edit: Nevermind, I'm getting confused about compliance buyouts.
Call me crazy - but it's unlikely that anyone retires and leaves $40M still on the table. RDP will keep trying to play until Wang decides to buy him out (and I don't blame RDP one bit for doing that).
The bigger question is if DiPi and his agent let the amnesty buyout take place instead of disability/insurance claim. (Wang is the person who insured the contract)
The press says RD gets his salary, whether he retires because of medical issues or not.
A buyout would pay him 2/3 of his remaining contract.
The question is does DiPietro want to play so badly, that he'll ride the AHL buses.
Can anyone corroborate the bolded part? Because it was my understanding the if a player retires, he loses any remaining contract value (story was that Rafalski left $6M on the table when he retired). And the LTIR issue only save the team actual $'s if the contract is insured, and I was pretty sure that due to the length, the Isles couldn't get insurance for RDP's contract.
The bigger question is if DiPi and his agent let the amnesty buyout take place instead of disability/insurance claim. (Wang is the person who insured the contract)
Like I said below, I thought that RDP's contract wasn't able to be insured to to the length of the contract?
And wouldn't this be a "normal" buy out (as opposed to amnesty), because Wang is going to want to get credit for RDP's buy-out against the salary floor?
Like I said below, I thought that RDP's contract wasn't able to be insured to to the length of the contract?
And wouldn't this be a "normal" buy out (as opposed to amnesty), because Wang is going to want to get credit for RDP's buy-out against the salary floor?
Right the insurance companies would not insure the contract so Wang self insured it.
Call me crazy - but it's unlikely that anyone retires and leaves $40M still on the table. RDP will keep trying to play until Wang decides to buy him out (and I don't blame RDP one bit for doing that).
if hes physically unable to play, he will be forced to retire. Thats what i meant to say, sorry if it came off as him just walking away(while he can still actually walk)
if hes physically unable to play, he will be forced to retire. Thats what i meant to say, sorry if it came off as him just walking away(while he can still actually walk)
How? If he's physically unable to play why wouldn't he sit on the IR?
The Net Present Value of a buyout for DiPietro at 5% (discounted rate) is ~$17,069,487, while the NPV of a buyout at 9% (more along the lines of the historical increase in the NHL's annual revenues) is ~$13,591,033.
I think the writing is on the wall for a potential sale by Wang, and the DiPietro NPV will just be deducted from the purchase price.
The buyout is less impactful from a financial standpoint for the Islanders than I think some are expecting.
