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Medical status nullify contract?

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07-25-2009, 07:07 PM
  #1
TK 421
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Medical status nullify contract?

The Blues still owe Brewer 8.5 mil over the next two seasons, yet his future is uncertain due to continued numbness from nerve damage. Is there is a specific set of circumstances where the Blues wouldn't be required to pay the remainder of the contract or are they stuck?

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07-25-2009, 07:28 PM
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mouser
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As long as the injury was sustained "during the course of his employment as a hockey player" then yes, the Blues are fully on the hook. If he is unable to play all or part of next season the Blues could choose to invoke the LTIR exception if they're going to be near the cap limit, but Brewer would still be paid.

From the Standard Player Contract signed by the Player and Team:

http://www.nhl.com/cba/2005-CBA.pdf, page 247
Quote:
(j) If, pursuant to Paragraphs 5(g) or (h) a Player examined in connection with Paragraph 5(d) is declared to be unfit for play 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 continue to receive the full benefits of this Agreement in accordance with the provisions of Paragraph 5(d). If such Player is declared to be physically able to play and refuses to do so, he shall be liable to immediate suspension without pay.
Paragraphs 5(g) and 5(h) have to due with required physician examinations.

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07-25-2009, 07:43 PM
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LadyStanley
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He'd have to retire (and forego the rest of his salary).

They cannot buy him out (as he has a hockey-induced injury). But can get salary cap relief (LTIR).

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07-25-2009, 08:33 PM
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TK 421
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Quote:
Originally Posted by LadyStanley View Post
He'd have to retire (and forego the rest of his salary).
They cannot buy him out (as he has a hockey-induced injury). But can get salary cap relief (LTIR).
Thank you both, LadyStanley and mouser.

So Brewer himself would have to both retire AND give back or waive the remaining money of his own volition? Or just retire, which then means the Blues don't have to pay?

I'm hoping a random small meteor strike will take care of this problem. If not, then I somehow have to get NOTENOUGHBREWER in as GM of another team.

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07-26-2009, 10:22 AM
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Quote:
Originally Posted by TK 421 View Post
Thank you both, LadyStanley and mouser.

So Brewer himself would have to both retire AND give back or waive the remaining money of his own volition? Or just retire, which then means the Blues don't have to pay?

I'm hoping a random small meteor strike will take care of this problem. If not, then I somehow have to get NOTENOUGHBREWER in as GM of another team.
If he retires,insurance will pay almost all his remaining contract.

I think insurance pays 80% and the team is responsible for the other 20%.

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07-26-2009, 11:17 AM
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LadyStanley
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Quote:
Originally Posted by CREW99AW View Post
If he retires,insurance will pay almost all his remaining contract.

I think insurance pays 80% and the team is responsible for the other 20%.
Only if the team has selected his salary as one (of about 7 per team) to be covered by insurance. Otherwise, it's coming out of the operating budget.

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07-26-2009, 11:20 AM
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VelvetJones
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I wonder how many contracts the average team insures.

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07-26-2009, 01:50 PM
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Originally Posted by CMacdonald View Post
I wonder how many contracts the average team insures.
It varies depending upon the contract values. Usually 5-7 players are covered.

The maximum length of a contract that can be covered is 7 years. Beyond that the team self-insures or tries to buy an additional policy (unusual given the premium cost).

Here is an article discussing this in light of the Canes signing Eric Staal. On his 10 year deal, the last three years of his deal are not insured.
Quote:
Teams are required to insure a handful of players through a “temporary total disability” program administered by the league. That program has been in place for about 15 years, NHL deputy commissioner Bill Daly said, and is designed to make coverage more easily available to teams.

“It provides the underwriters with ’scale,’ spreads the risk and allows them to provide more favorable rates,” Daly said in an e-mail.

The league purchases its disability insurance through the BWD Group, a Long Island, N.Y., insurance broker that also obtains coverage for the NBA, WNBA and Major League Baseball. (One underwriter, the Chubb Corporation, touted its relationship with the NHL in its 2001 annual report.)

Each team pays a premium based on the salaries of its five highest-paid players, but is free to allocate that coverage how it wishes. Typically, a team will extend coverage to as many as seven players, Daly said. Coverage kicks in when a player misses at least 30 games.

Beyond that, individual teams are free to pursue additional coverage, but the heavy premiums make it a losing proposition. To insure a player under the league program, it costs about 5 percent of his salary. To insure additional players, it would cost substantially more.
http://proathletesonly.com/news/feat...nhl-contracts/

Also a player may not be insurable due to past medical history as noted in the above article on Staal.

Quote:
This season, the Hurricanes will pay almost $1 million for $19 million of coverage through the league program, but even that process isn’t simple. Insurers may balk at something as specific as an individual body part.

The Hurricanes were able to insure Justin Williams last season despite a previous injury to his right knee, Rutherford said. They received insurance payments when he missed more than three months with a serious injury to the same knee, but they wouldn’t be able to insure that knee again this season.
In 2007 the Sabres suspended Teppo Numminen without pay due to a heart ailment when he was unable to pass his physical and they were unable to insure him due to previous health problems.
http://mirtle.blogspot.com/2007/09/n...suspended.html

Buffalo was aware of his previous heart problems when he was signing two years earlier and that was why insurance was not available:
Quote:
He had three goals and 14 assists, while averaging 21 minutes of ice time, in his one season with Dallas in 2003-04. And he's overcome a heart condition that forced him to miss five games that season.

Numminen was cleared to play by Dallas team doctors after a series of tests showed that a dilated aorta wasn't considered life-threatening. He competed in the playoffs and represented his native Finland in the World Cup of Hockey tournament later that summer.
http://www.tsn.ca/nhl/story/?id=132414


Last edited by Wetcoaster: 07-26-2009 at 02:07 PM.
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Old
07-26-2009, 10:12 PM
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Mike Rathje had a similar nerve related injury, and we have had to LTIR the last few years

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