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Would this be considered cap circumvention?

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07-26-2010, 06:04 PM
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Cloned
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Would this be considered cap circumvention?

When the Oilers traded Patrick O'Sullivan to Phoenix to be bought out, they received Jim Vandermeer in return.

In that case it worked out for both teams as Phoenix got cap and fiscal relief from the buyout while the Oilers got a hard-nosed defenseman. But what if the situation was slightly different?

Say a player (Player X) wants to stay with a current club (Team A) but knows his contract is too expensive for the club to keep.

Team A strikes a deal with Team B:

We'll send you Player X along with these other assets (draft picks mostly) in exchange for something minimal. You'll buy out Player X for us and then we'll "re-sign" him for less.

Seems like it'd be a good way for rebuilding clubs way under the cap to accumulate assets and for contending teams to maximize their hold on the players they feel are valuable, but too expensive at their current contracts.

Or would this be squashed by the league for cap circumvention?

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07-26-2010, 06:17 PM
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Quote:
Originally Posted by Cloned View Post
When the Oilers traded Patrick O'Sullivan to Phoenix to be bought out, they received Jim Vandermeer in return.

In that case it worked out for both teams as Phoenix got cap and fiscal relief from the buyout while the Oilers got a hard-nosed defenseman. But what if the situation was slightly different?

Say a player (Player X) wants to stay with a current club (Team A) but knows his contract is too expensive for the club to keep.

Team A strikes a deal with Team B:

We'll send you Player X along with these other assets (draft picks mostly) in exchange for something minimal. You'll buy out Player X for us and then we'll "re-sign" him for less.

Seems like it'd be a good way for rebuilding clubs way under the cap to accumulate assets and for contending teams to maximize their hold on the players they feel are valuable, but too expensive at their current contracts.

Or would this be squashed by the league for cap circumvention?
Given that this may involve an Undisclosed Agreement (sure sounds like one), that would violate Article 26.2 of the CBA. As quoted from the CBA:

Quote:
26.2 Undisclosed Terms and Revenues.
A Club (directly or indirectly through a "Club Actor," i.e., any owner, shareholder, Club Affiliated Entity, the NHL or third party acting at the behest of a Club) and a Player (directly or indirectly through a "Player Actor," i.e., his Certified Agent or any other individual, any entity, or the NHLPA, acting on behalf of the Player) may not, at any time, enter into undisclosed agreements of any kind, express or implied, oral or written, or promises, undertakings, representations, commitments, inducements, assurances of intent, or understandings of any kind involving consideration of any kind to be paid, furnished or made available or guaranteed to the Player, or Player Actor, by the Club or Club Actor either prior to, during, or after the term of the Player's SPC.
Per 26.1, a violation of 26.2 would be considered Circumvention.

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Old
07-26-2010, 06:22 PM
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kdb209
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Yup - any agreement between teams or between a team and player (other than the terms of his SPC) would be circumvention.

And even if it weren't, the player happily takes the buyout from Team B, becomes a UFA, and then signs for more money with Team C - rather than "signing for less" with Team A.

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07-26-2010, 06:29 PM
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Quote:
Originally Posted by kdb209 View Post
Yup - any agreement between teams or between a team and player (other than the terms of his SPC) would be circumvention.

And even if it weren't, the player happily takes the buyout from Team B, becomes a UFA, and then signs for more money with Team C - rather than "signing for less" with Team A.
Doesn't have to be any explicit agreement though. Just like the implicit agreements between Hossa and Chicago or Zetterberg and Detroit that they'll most likely retire before their contracts expire.

As for the latter, this would only work if a player was interested in staying with Team A.

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07-27-2010, 02:47 AM
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Quote:
Originally Posted by Cloned View Post
Doesn't have to be any explicit agreement though. Just like the implicit agreements between Hossa and Chicago or Zetterberg and Detroit that they'll most likely retire before their contracts expire.

As for the latter, this would only work if a player was interested in staying with Team A.
so basically the same O'sullivan situation with the Oilers signing him for less money now.

If there is no trackable records of any deal I bet that the league would have no way of saying that it is cap circumvention.

But if O'Sullivan magically was worth $2.925 or more and he hits the open market because the Oilers want to pay him less money, then I bet that O'Sullivan is going to test the open market to see who is going to pay him what he's worth. No player would agree to it, its a kick in the nuts.

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