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June 15-30 NHL Contract Buyout Period

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Old
06-06-2006, 02:36 PM
  #1
FanSince2014
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June 15-30 NHL Contract Buyout Period

I saw this info on http://spectorshockey.tripod.com/spe...e_rumours.html

What it doesn't say is if contracts bought out during this period count against a team's cap for the 2006-07 season or not.

Do they?

Thanks.

(If this info is posted elsewhere here in HFB BoH, please post the link.)

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06-06-2006, 02:41 PM
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jkrdevil
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Quote:
Originally Posted by FanSince'05
I saw this info on http://spectorshockey.tripod.com/spe...e_rumours.html

What it doesn't say is if contracts bought out during this period count against a team's cap for the 2006-07 season or not.

Do they?

Thanks.

(If this info is posted elsewhere here in HFB BoH, please post the link.)
The buyouts count against the cap but it can be spread out across 2 seasons I believe.

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06-06-2006, 02:49 PM
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I thought it was half the salary over twice the period of time. Ie a 4 year 20 mil contract would be 5mil cap hit a year for 4 years or if you buy him out a 2.5mil hit over 8 years.

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06-06-2006, 03:42 PM
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Ordinary Buyouts (as opposed to the one time Complience Buyouts last offseason) are pretty much the same as they were under the old CBA:

2/3's of the remaining salary (1/3 if player is under 26yo) paid out over 2x the remaining number of years on the contract.

Buyouts do count against the cap, but it is not just a straight forward Buyout Dollars/Buyout Years, due to the way salaries are averaged over multi year deals for cap purposes. If the actual salary paid on the deal prior to the buyout is more than the cap averaged salary for those years (ie the averaging gave them a cap discount), then that discount is counted against the cap over the remaining life of the original contract in addition to the actual buyout dollars over the 2x term. The converse is true - if the amout paid was less than the averaged cap hit, they get a cap credit back against the buyout.

For all the gory details see Article 50.5 (d) (iii) in the CBA:

Quote:
(iii) Treatment of Ordinary Course Buyouts for Purposes of Calculating Averaged Club Salary. As a result of the averaging rules set forth in this Agreement, the actual Player Salary and Bonuses paid to a Player in a League Year of an SPC may be either more, or less, than the Averaged Amount of such SPC included in the Club's Averaged Club Salary for such League Year. If a Club elects to buy out an SPC pursuant to the Ordinary Course Buyout provision set forth in Section 50.9(i) below, the disparity between the actual Player Salary and Bonuses paid in the earlier League Year(s) of the SPC and the Averaged Amount included in the Club's Averaged Club Salary in such League Year(s) is accounted for in how the buyout agreement is treated for purposes of averaging. For a Club that buys out an SPC pursuant to an Ordinary Course Buyout, the amount to be included in the Club's Averaged Club Salary for each League Year during the term of the buyout agreement is determined as follows:

(A) For a League Year during the term of the original SPC that was bought out, the included amount is the original Averaged Amount of the SPC for that League Year, reduced by the amount of the buyout "savings" for that League Year (with "buyout savings" defined as the actual amount of Player Salary and Bonuses that was to be paid under the SPC for such League Year minus the amount of Player Salary that is to be paid under the buyout agreement). If the amount of buyout "savings" in a League Year is more than the original Averaged Amount for such League Year, then the amount of such excess is included in the Averaged Club Salary for such League Year as a "credit."

(B) For a League Year following the term of the original SPC that was bought out, the amount included in the Club's Averaged Club Salary is the amount of Player Salary that is to be paid under the buyout agreement for that League Year.
The method for calculating the includable amounts for a Club's Averaged Club Salary is set forth in the following Illustrations. For each Illustration, assume that the Player is over age 26 and therefore is entitled to two-thirds (2/3) of his remaining Player Salary, to be paid over twice the remaining length of the SPC, in the event he is bought out pursuant to an Ordinary Course Buyout. Also, assume for all illustrations that the Player signed a three-year SPC, which is bought out after the first League Year (Year 1), and therefore, the Player is entitled to earn two-thirds (2/3) of the remaining Player Salary owed under the SPC over Years 2 through 5.
PHP Code:
          Illustration #1:  
                                           
Year 1   Year 2   Year 3     Year 4    Year 5

1.   Original SPC Amount             
$4.0M    $2.5M    $2.5M

2.   Original Averaged Amt
.          $3.0M    $3.0M    $3.0M

3.   Buyout Amount 
(2/3 of $5M)              $1.666M  $1.666M   (Total = $3.333M)

4.   Buyout AmtOver twice                          833,000  $833,000 $833,000 $833,000         
   Length of original SPC        

5.    Buyout 
"Savings"                      $1.666M   $1.666M       -             -
            (
Line 1 minus Line 4)    
         
    
6.    AmtIncluded in                                   $1.333M  $1.333M  $833,000 $833,000
                      Averaged Club Salary  
          
(Line 2 minus Line 5

The total amount actually paid to the Player under the buyout agreement over four years is $3.3 million, but the total Averaged Amount included in the Club's Averaged Club Salary is $4.3 million. The $1 million difference reflects the $1 million that the Club saved against its Payroll Room in Year 1 (the Club paid $4 million, but the Averaged Club Salary in Year 1 only included $3 million based on the averaging).

PHP Code:
    Illustration #2:  
                        
Year 1   Year 2   Year 3     Year 4    Year 5
1.  Original SPC Amount          
$6.0M     $4.0M    $2.0M

2.  Original Averaged Amt
.       $4.0M     $4.0M    $4.0M

3.  Buyout Amount 
(2/3 of $6M)             $2.666M  $1.333M  (Total = $4.0M)

4.  Buyout AmtOver twice                     $1.0M       $1.0M     $1.0M    $1.0M         
   Length of original SPC        

     5.  Buyout 
"Savings"                 $3.0M       $1.0M       -                -
(
Line 1 minus Line 4)    

    
6.  AmtIncluded in                       $1.0M       $3.0M     $1.0M     $1.0M
           Averaged Club Salary
          
(Line 2 minus Line 5
The total amount actually paid to the Player under the buyout agreement over four years is $4.0 million, but the total Averaged Amount included in the Club's Averaged Club Salary is $6.0 million. The $2 million difference reflects the $2 million that the Club saved against its Payroll Room in Year 1 (the Club paid $6 million, but the Averaged Club Salary in Year 1 only included $4 million based on the averaging).
PHP Code:
    Illustration #3:  
                     
Year 1   Year 2   Year 3     Year 4    Year 5
1.  Original SPC Amount       
$2.0M        $4.0M    $6.0M

2.  Original Averaged Amt
.    $4.0M        $4.0M     $4.0M

3.  Buyout Amount 
(2/3 of $10M)         $2.666M  $4.0M  (Total = $6.666 M)

4.  Buyout AmtOver twice                    $1.666M  $1.666M  $1.666M  $1.666M         
   Length of original SPC        

     5.  Buyout 
"Savings"                $2.333M   $4.33M       -                -
           (
Line 1 minus Line 4)    

    
6.  AmtIncluded in                   $1.666M   (- $333K)  $1.666M  $1.666M
       Averaged Club Salary                                         
"credit"
       
(Line 2 minus Line 5
The total amount actually paid to the Player under the buyout agreement over four years is $6.66 million, but the total Averaged Amount included in the Club's Averaged Club Salary is $4.66 million. The $2 million difference reflects the extra $2 million that the Club paid in Year 1 (the Club paid $2 million, but the Averaged Club Salary in Year 1 included $4 million based on the averaging), which the Club may save against its Payroll Room over the term of the buyout agreement.

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06-06-2006, 04:07 PM
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A couple of other Buyout related tidbits from the CBA:

Complience Buyouts (50.9 (i)(ii)) one time deal last offseason - paid out over the remaining length (not 2x) and do not count against the team caps or players 54% share.

Quote:
50.9 Issues Relating to Timing and Calculation of Actual Club Salary and Averaged Club Salary.
...
(i) "Ordinary Course" Buyouts and "Compliance" Buyouts.
(i) If a Player's SPC has been terminated and bought out by a Club pursuant to the Ordinary Course Buyout provisions set forth in the SPC (which SPC also eliminates the concept of the "lump sum" buyout), the money due and owing to the Player pursuant to the buyout shall be paid out in accordance with the terms of the SPC (e.g., one-third or two-thirds of the remaining Player Salary due and owing, to be paid over twice the remaining years of the terminated and bought out contract), and the amounts paid under such Buyout agreement shall be included in the Actual Club Salary and Averaged Club Salary (as set forth in this Article 50) of the Club that bought out the Player during any League Year in which the buyout is paid, and the amounts paid under such buyout agreement shall also count against the Players' Share for any League Year in which the buyout is paid (an "Ordinary Course" Buyout). Clubs exercising Ordinary Course Buyout rights pursuant to the SPC shall endeavor to provide a Player documentation sufficient to enable the Player to "factor" the Club's buyout obligation with a commercial bank, if the Player so desires.

(ii) If a Player's 1995 SPC has been terminated and bought out by a Club pursuant to the "Compliance Buyout" provisions set forth in Exhibit 16 to this Agreement, which "Compliance Buyout" provisions apply only to the period preceding the 2005-06 regular season as agreed upon by the parties (and in accordance with the terms of the 1995 SPC, except as modified herein), then the money due and owing to the Player pursuant to the buyout shall be paid over the course of the remaining length of the terminated and bought out 1995 SPC, shall not be made in a lump sum, and the amounts paid under such buyout agreement shall not be included in the Actual Club Salary and Averaged Club Salary of the Club that bought out the Player during any League Year in which the buyout is paid. Any moneys paid pursuant to a Compliance Buyout Agreement are excluded from the definition of League-wide Player Compensation. Amounts paid under such buyout agreement shall not be counted against the Players' Share for any League Year in which they are paid. Moreover, a Player that has been bought out under the Compliance Buyout provisions of this Agreement shall be prohibited from rejoining the Prior Club that bought him out (via re-signing, trade Assignment or otherwise) for the 2005-06 League Year.

(iii) Clubs and Players shall not be permitted to negotiate either a different amount or different length of time over which buyout obligations may be paid.

(iv) If a Player's SPC has been bought out by a Club prior to execution of this Agreement, the amounts paid under such buyout agreement shall not be included in the Actual Club Salary and Averaged Club Salary of the Club that bought out the Player during any League Year in which the buyout is paid. Any moneys paid pursuant to such Buyout Agreements are excluded from the definition of League-wide Player Compensation. Amounts paid under such buyout agreement shall not be counted against the Players' Share for any League Year in which they are paid.

(v) Clubs shall file their Buy-Out Agreements with Central Registry, the NHL and NHLPA.
Normally Ordinary Buyouts can only be made in the offseason (Regular Period). I assume that this is the 6/15-6/30 period referenced in the initial post. The leaked draft CBA does not contain Exhibit 16 (the Standard Players Contract). Under the old CBA the Buyout Period was from the end of the rgular season to July 1 - Buyouts could not happen during the season under the old CBA.

Under the new CBA, a team may exercise a limited number of Buyouts outside the Regular Period. It is uncertain from the wording (and lack of Article 16 SPC) whether Buyouts would be allowed during the regular season, or only late in the offseason after arbitration awards (my guess):

Quote:
ARTICLE 11
Rules and Procedures Governing Standard Player's Contract
...
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.

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06-06-2006, 04:21 PM
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You're a CBA junkie, you know that?

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06-07-2006, 03:24 AM
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Quote:
Originally Posted by kdb209
Ordinary Buyouts (as opposed to the one time Complience Buyouts last offseason) are pretty much the same as they were under the old CBA:

2/3's of the remaining salary (1/3 if player is under 26yo) paid out over 2x the remaining number of years on the contract.

Buyouts do count against the cap, but it is not just a straight forward Buyout Dollars/Buyout Years, due to the way salaries are averaged over multi year deals for cap purposes. If the actual salary paid on the deal prior to the buyout is more than the cap averaged salary for those years (ie the averaging gave them a cap discount), then that discount is counted against the cap over the remaining life of the original contract in addition to the actual buyout dollars over the 2x term. The converse is true - if the amout paid was less than the averaged cap hit, they get a cap credit back against the buyout.

For all the gory details see Article 50.5 (d) (iii) in the CBA:
Wow, thanks for this response.

I tried to follow along but got lost and can't figure out this simple question.

What would the cap hit to a team be to buyout a player who has a one year left on a contract that paid $3M per season?

Thanks.


Last edited by FanSince2014: 06-07-2006 at 03:32 AM.
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06-07-2006, 04:27 AM
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Quote:
Originally Posted by FanSince'05
Wow, thanks for this response.

I tried to follow along but got lost and can't figure out this simple question.

What would the cap hit to a team be to buyout a player who has a one year left on a contract that paid $3M per season?

Thanks.
2 million spread out over 2 years.... assuming the contract also averaged 3 million a year and the player is at least 26, so a cap hit of a million a year.

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06-07-2006, 12:40 PM
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Quote:
Originally Posted by Jonjmc
2 million spread out over 2 years.... assuming the contract also averaged 3 million a year and the player is at least 26, so a cap hit of a million a year.
Is the lockout year included and what about the rollback?

Let's use Aaron Miller as an example.

In 2003, he signed a 4 year contract for $3.5M per season.

He made $3.5M in 2003-04, was slated to make $3.5M for 2004-05, made $2.66M in 2005-06, and is slated to make $2.66M in 2006-07.

If the Kings buy him out, what will be the cap hit for the Kings?

Thanks.

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06-07-2006, 02:39 PM
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He would be owed a total of $1.733 million. This would be paid at a rate of $866,500 per year for the next two years. That is the cap hit for each of the next two years.

I believe ...


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06-07-2006, 02:49 PM
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Quote:
Originally Posted by FanSince'05
Is the lockout year included and what about the rollback?

Let's use Aaron Miller as an example.

In 2003, he signed a 4 year contract for $3.5M per season.

He made $3.5M in 2003-04, was slated to make $3.5M for 2004-05, made $2.66M in 2005-06, and is slated to make $2.66M in 2006-07.

If the Kings buy him out, what will be the cap hit for the Kings?

Thanks.

You can ignore anything before the lockout. Existing contracts after the lockout were rolled back the 24% and then averaged over the remaining post-lockout years.

In your Aaron Miller case - ignore the $3.5M in '03-'04 and the missed lockout season, and just average out the remaining years ($2.66M in '05-'06 and '06-'07, boy that was easy - $2.66M). If the Kings buy him out this offseson, since the actual dollars paid ($2.66M for '05-'06) match the averaged contract amount, there is no need to make any adjustments, so the buyout amount would be 2/3 x $2.66M (remaining salary) paid out over 2 years (2x the remaining term) = $890K/yr in '06-'07 and '07-'08.

edit: with no rounding it comes to $1,773,333.33 over 2 years = $886,666.66 / yr.

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06-07-2006, 03:07 PM
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Quote:
Originally Posted by kdb209
You can ignore anything before the lockout. Existing contracts after the lockout were rolled back the 24% and then averaged over the remaining post-lockout years.

In your Aaron Miller case - ignore the $3.5M in '03-'04 and the missed lockout season, and just average out the remaining years ($2.66M in '05-'06 and '06-'07, boy that was easy - $2.66M). If the Kings buy him out this offseson, since the actual dollars paid ($2.66M for '05-'06) match the averaged contract amount, there is no need to make any adjustments, so the buyout amount would be 2/3 x $2.66M (remaining salary) paid out over 2 years (2x the remaining term) = $890K/yr in '06-'07 and '07-'08.

edit: with no rounding it comes to $1,773,333.33 over 2 years = $886,666.66 / yr.
Cool.
Thanks for the lesson.

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07-08-2007, 11:03 AM
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i really hate to revive a year old thread but this thread was linked in the CBA FAQ thread so i figured this was the place to ask my question...

before a player can be bought out do they have to be put on and clear waivers? I have been having this debate with some friends and I am the only one that thinks they do have to be put on waivers before being bought out

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07-08-2007, 11:25 AM
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Quote:
Originally Posted by Lunatik View Post
i really hate to revive a year old thread but this thread was linked in the CBA FAQ thread so i figured this was the place to ask my question...

before a player can be bought out do they have to be put on and clear waivers? I have been having this debate with some friends and I am the only one that thinks they do have to be put on waivers before being bought out
Yes they do. (Exhibit 1, Section 13, subsection (a))

However, players who have a NMC in their contract can reject waivers, and then be bought out.

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07-08-2007, 01:55 PM
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Can a player still be bought out by his team? or is there only say a 2 week period where teams can buy out players?

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07-08-2007, 02:05 PM
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Quote:
Originally Posted by SensFan82 View Post
Can a player still be bought out by his team? or is there only say a 2 week period where teams can buy out players?
There is a second buyout period which begins for a team on the third day after their last arbitration settlement/award. This period lasts for 48 hours. (Exhibit 1, Paragraph 13.c.ii) It is called Ordinary Course Buy-outs Outside the Regular Period. To use this buy-out, a team must have more than 1 arbitration case.

However, a team is only allowed 3 of these buyouts during the course of the CBA. (Article 11.18)


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07-17-2008, 05:30 PM
  #17
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Sorry to bring back such an old thread (it's from the CBA FAQ, so I thought it'd be remotely appropiate)...

This is concerning Ordinary Course Buyouts Outside the Regular Period...

The CBA says in 11.18
Quote:
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.
To me (and I'm no expert), that says that a club with more than one arbitration hearing (I'm assuming that entails the contract actually being settled in arbitration) is eligible to pursue this type of buyout. Teams with 0 or 1 arbitration hearings may not.

Now according to a recent Boston Globe article:
Quote:
Once that arbitration figure is announced, the Bruins are allowed a second look at their roster, to determine if they want to buy out anyone (up to a three-player maximum), in theory to accommodate Wideman's pay hike. The buyout period lasts only 48 hours, and doesn't begin until three days after the arbitrator's decision.

Contrary to some reports, the Bruins will get that "second look" buyout opportunity even if Wideman eschews arbitration and opts for a conventionally bargained contract. If, say, Wideman were to tie up his deal Thursday, the Bruins could cut a body or two (buyouts become unrestricted free agents) as early as the following Monday or Tuesday.
Off the top of my head, the Bruins only have one arbitration case (Wideman) and if he settles, they would obviously have none...so, am I misinterpreting this clause or is there more to it in other parts of the CBA or... what's the deal here?

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07-17-2008, 06:05 PM
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Quote:
Originally Posted by Mike Farkas View Post
Sorry to bring back such an old thread (it's from the CBA FAQ, so I thought it'd be remotely appropiate)...

This is concerning Ordinary Course Buyouts Outside the Regular Period...

The CBA says in 11.18

To me (and I'm no expert), that says that a club with more than one arbitration hearing (I'm assuming that entails the contract actually being settled in arbitration) is eligible to pursue this type of buyout. Teams with 0 or 1 arbitration hearings may not.

Now according to a recent Boston Globe article:

Off the top of my head, the Bruins only have one arbitration case (Wideman) and if he settles, they would obviously have none...so, am I misinterpreting this clause or is there more to it in other parts of the CBA or... what's the deal here?
Cut-and-Pasting from a post in a Goc elects arbitration thread:

Quote:
Originally Posted by kdb209
Also, despite the collective CBA wisdom here, it looks like the Sharks may have a 2nd buyout period available after Goc's award/contract - the generally accepted "you need two arbitration cases" is not actually true.

A closer reading of Article 11.18 shows that the only case where a team is prevented from exercising an Ordinary Course Buy-Outs Outside the Regular Period is when the team has a single arbitration case that was team elected (for a player who earned >$1.5M) - thanks mouser for that catch.

Quote:
Originally Posted by mouser
For the 2nd buyout window, are two arbitration cases mandatory?

Quote:
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.
Section 12.3(a) is for the club-elected arbitration on players making $1.5m or more. Since 12.3(a) is specifically called out here, that would suggest the 2nd buyout window would open if there were a single arbitration under 12.2 (player-elected), or even 12.3(b) (second clause category of team-elected)?

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07-17-2008, 06:29 PM
  #19
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Quote:
Originally Posted by kdb209 View Post
Cut-and-Pasting from a post in a Goc elects arbitration thread:
Okay, more learning here for me So, according to that passage just quoted, that if a player isn't bought out during that time, then they cannot be bought out until the next buyout period.

I always thought that a player could be bought out at anytime, but from the way I'm understanding it, that's not the case-that players who start the season on their respective team, if they have an NMC, can only be moved if they waive, but they can't be bought out until the next period?


Hope I'm being clear.

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07-17-2008, 07:38 PM
  #20
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Quote:
Originally Posted by Tinalera View Post
Okay, more learning here for me So, according to that passage just quoted, that if a player isn't bought out during that time, then they cannot be bought out until the next buyout period.

I always thought that a player could be bought out at anytime, but from the way I'm understanding it, that's not the case-that players who start the season on their respective team, if they have an NMC, can only be moved if they waive, but they can't be bought out until the next period?


Hope I'm being clear.
Correct - a player CANNOT be bought out during the season.

The only two periods when a player can be bought out are June 16-30 (the Regular Period) and a 48 hr window starting 3 days after a teams last arbitration case is settled ("Ordinary Course Buy-Outs Outside the Regular Period").

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07-17-2008, 07:55 PM
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Quote:
Originally Posted by kdb209 View Post
Correct - a player CANNOT be bought out during the season.

The only two periods when a player can be bought out are June 16-30 (the Regular Period) and a 48 hr window starting 3 days after a teams last arbitration case is settled ("Ordinary Course Buy-Outs Outside the Regular Period").

And this second period can only be done if a certain amount of arbitration cases are going on with that team.

Also team is only allowed 3 buyouts-and that's during the life of the current CBA?

Now I see why it's not so easy to just "buyout all the players" one doesn't like.

I used to just read the fan boards of the various teams. I've been getting into the business boards and it's fascinating to learn that it's not so simple when fans post "Buyout X amount player, get rid of him!" and other stuff that we'd like a certain team to do. It's not always that simple.

Interesting having "peeked behind the curtain", I don't read the "nonbusiness" threads in the same way now.

Thanks for being patient with a relative newbie to the business boards

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07-18-2008, 02:00 PM
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Quote:
Originally Posted by Tinalera View Post
And this second period can only be done if a certain amount of arbitration cases are going on with that team.

Also team is only allowed 3 buyouts-and that's during the life of the current CBA?
The second period is allowed in all situation where a team has an arbitration case - except in the case where the team has only one case and it was for a team-elected arbitration in lieu of extending a QO (under CBA Article 12.3(a)). See my post above clarifying why it is not "two or more arbitration cases" as has generally been assumed.

Quote:
Originally Posted by CBA Article 12.3(a)
(a) Club-Elected Salary Arbitration For Players With Paragraph 1 NHL
Salaries plus Signing, Roster, and Reporting Bonuses Greater Than $1,500,000 In The
Prior League Year.
(i) If a Player who is otherwise eligible to receive a Qualifying Offer
and become a Group 2 Restricted Free Agent had a Paragraph 1
NHL Salary plus Signing, Roster and Reporting Bonuses in excess
of $1,500,000 in the aggregate in the final League Year of his most
recent SPC, a Club may elect to file for salary arbitration to
determine the Player's Paragraph 1 Salary for the upcoming
League Year in lieu of making a Qualifying Offer to such Player.

(ii) In any salary arbitration that takes place pursuant to this Section
12.3(a), the Salary Arbitrator may not award the Player a
Paragraph 1 Salary that is less than eighty-five (85) percent of the
aggregate sum of Player's Paragraph 1 Salary plus Signing,
Reporting and Roster Bonuses in the final League Year of his most
recent SPC.
The limit of three buyouts during the life of the CBA does not apply to all buyouts - only to buyouts during that second window ("Ordinary Course Buy-Outs Outside the Regular Period").

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.

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07-18-2008, 04:47 PM
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Thanks for the clarification.

You sound like you know the CBA like the back of your hand-impressive Obviously you've done just a tad of research with it

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06-13-2011, 06:11 PM
  #24
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Settle a bet: If a player is bought out June 16th, doesn't he have to wait til July 1st to sign with a new team?

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06-14-2011, 02:16 PM
  #25
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Originally Posted by rabi View Post
Settle a bet: If a player is bought out June 16th, doesn't he have to wait til July 1st to sign with a new team?
A bought out player immediately becomes a UFA, and therefore is free to sign with any team at any time. Buyout details are the CBA Exhibit 1, Standard Player Contract paragraph 13 [page 251] www.nhl.com/cba/2005-CBA.pdf

To date I don't recall a team signing a bought out player until July, but I don't see any prohibition on doing so.

Quote:
13. The Club, in addition to other rights hereunder, at its option, by written notice delivered
to the Player in person, or by overnight mail to the Player's address set forth herein, may
terminate this SPC on the following conditions:

(a) The Club shall offer the Player on Unconditional Waivers, either before or
promptly after the notice of intention to exercise the Ordinary Course Buy-Out
option (herein called "notice of termination") is given.

(b) Termination pursuant to this Paragraph shall be effective upon receipt by the
Player of the notice of termination and the Player clearing Unconditional Waivers

pursuant to Paragraph 13(a) above.

(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).
Quote:
(e) Upon termination, the Player shall immediately be an Unrestricted Free Agent and
shall no longer be obligated to perform under this SPC.


(f) Waiver claim of Player by another Club shall pre-empt and relinquish Club's Buy-
Out obligation, due to failure to clear Waivers.
252

(g) Clubs shall file their Buy-Out agreements, the form of which is attached hereto as
Exhibit 21, with Central Registry and the NHLPA by facsimile or overnight mail
within 24 hours of such agreements becoming effective.

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