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UH OH...salary cap floor!

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06-23-2010, 08:34 PM
  #1
Obi Wan LaRosie
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UH OH...salary cap floor!

So much for the Canes trying to keep the team salaries at 41 ish million next year. The salary cap floor is 43.4 million. Guess maybe we can go out and get a FA. Thoughts??

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06-23-2010, 08:39 PM
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Vagrant
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With the buyout clause, Brind'Amour's money would stay on the books if we bought him out or he retired. Either way, we're on the hook for his hit. There is no possible way to eat that contract and get out of it like we have with Kaberle, Hamilton, etc.

I think that if we draft a rookie at slot money with the 7th that makes the roster right away, the cap floor will probably be reached.

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06-23-2010, 09:15 PM
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Obi Wan LaRosie
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I thought that because Brind'Amour signed his contract before he turned the magic age of 35 that we could still buy him out per the usual rules. If he retires, I thought we would be off the hook for the cash.

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06-23-2010, 09:20 PM
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Quote:
Originally Posted by Moosetache View Post
I thought that because Brind'Amour signed his contract before he turned the magic age of 35 that we could still buy him out per the usual rules. If he retires, I thought we would be off the hook for the cash.
From my understanding, his cap hit stays on the books regardless. I think he signed that extension as a 35 year old or at least to take effect in his "35 year old season", determined by whatever arbitrary system exists to determine that.

I have heard several mention that he's one of those 35+ guys that you can't get out from under.

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06-23-2010, 10:07 PM
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Sasha Cares
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Brindy is on the books no matter what, he was 35

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06-23-2010, 11:19 PM
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Boom Boom Anton
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Quote:
Originally Posted by Vagrant View Post
From my understanding, his cap hit stays on the books regardless. I think he signed that extension as a 35 year old or at least to take effect in his "35 year old season", determined by whatever arbitrary system exists to determine that.

I have heard several mention that he's one of those 35+ guys that you can't get out from under.
I believe you are correct. I tried reading through the key clauses in the 2005 labor agreement so think I understand it (but could be off). From a salary cap standpoint, his full cap hit stays on the book no matter what since he was over 35 when it was signed.

From a "real dollars" standpoint, the Canes can buy him out and pay 2/3rds of his salary (the fact that he was over 35 has no bearing on this part) so this would save the Canes $1M in real dollars, but won't affect the cap hit. If he retires, it will depend on what his contract terms state, but my guess is that he would forgo all of his salary if he retired (but again, wouldn't affect the cap hit).

That would be the ideal situation for Karmanos/Rutherford. They are trying to turn a profit so it is the "real dollars" that count. If Brindy's cap hit stays, but they don't have to pay him as much in real money, then they won't have to pick up a bunch of salary to hit the cap floor.

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06-24-2010, 12:47 AM
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Anton Skinner
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Regardless....I would just love to see us spend that 2-3 mil on ONE new roster player, be it Grebeshkov (or another D-man), or Versteeg (or another forward)....i just think we need to add one more piece to keep the likes of Samsonov, Cole, Larose off the top 6......

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06-24-2010, 12:55 AM
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danishh
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this may be a bit idealistic, but what if brindy just retires? Would he do that?

canes get his full cap hit with no salary. Problem solved. If there is a need to force it on him, just waive him and say he'll be assigned to the minors (does he have an NMC?)

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06-24-2010, 06:27 AM
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Boom Boom Anton
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Quote:
Originally Posted by danishh View Post
this may be a bit idealistic, but what if brindy just retires? Would he do that?

canes get his full cap hit with no salary. Problem solved. If there is a need to force it on him, just waive him and say he'll be assigned to the minors (does he have an NMC?)
That is what I think Rutherford views as the ideal situation and what they want. Unfortunately, Rod has been quoted in the local paper of saying he has every intent of returning to play out the final year of his contract. Can't say I blame him as $3M is a lot of money (even to someone who already has a lot of money).

There are a lot of ways they can try and force him, but most of them would lead to an ugly divorce which I don't think the team wants

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06-24-2010, 08:45 AM
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tarheelhockey
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Quote:
Originally Posted by ncpuckhog View Post
I believe you are correct. I tried reading through the key clauses in the 2005 labor agreement so think I understand it (but could be off). From a salary cap standpoint, his full cap hit stays on the book no matter what since he was over 35 when it was signed.
This doesn't really change anything about your point, but just for future reference/trivia purposes:

Technically the 35+ rule kicks in according to the player's age as of June 30th. So he could sign a contract in April at age 34, but if he has a birthday soon thereafter the 35+ rule still applies.

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06-24-2010, 10:14 AM
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Quote:
Originally Posted by danishh View Post
this may be a bit idealistic, but what if brindy just retires? Would he do that?

canes get his full cap hit with no salary. Problem solved. If there is a need to force it on him, just waive him and say he'll be assigned to the minors (does he have an NMC?)
There's simply no reason for Brindy to retire. All he has to do is ... well ... *nothing* until July 1 and the Canes owe him at least $2 million. Unless the Canes make him some kind of front-office job offer than he can't refuse (which really won't help actual dollars or cap hit at all, either), I just can't see him retiring.

Waiving him and sending him to the minors doesn't accomplish anything either. You still pay him $3 million and take a $3 million cap hit. Maybe then he retires, but I'm hoping this is a last resort.

The best case for the Canes is paying the buyout. I have a technical question, though. Teams have the option to stretch the buyout over twice the remaining length of the contract, and so far, I think every team has gone with this option. Do we have the option of paying out the $2 million over two years BUT taking the full $3 million cap hit this year? If so, that would be my advice. If not, just pay $1 million each of the next two years and take $1.5 million cap hit both years.

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06-24-2010, 11:28 AM
  #12
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That could be the case. I'm not sure what it specifically counts as for players 35+ in terms of years. I do know they count for full value though over either one or two years.

link here: http://www.nhlscap.com/cap_faq.htm#buyouts

Quote:
If the player is
-- Under the age of 26 at the time of termination, the buyout amount is 1/3rd the remaining value
-- 26 or older at the time of termination, the buyout amount is 2/3rd the remaining value.

This is set forth in 13(d) of the Standard Player Contract (Exhibit 1 in the CBA). The remainder of this explanation applies to buyouts that took place after July 29, 2005, and assumes the player was not 35 or older when signing his SPC (in which case a buyout does not reduce the cap hit).

When a player is bought out, the team still takes a cap hit for the player over twice the remaining length of the contract. The amount of the cap hit (by year) is determined as follows:

1. Take the actual salary due for each remaining year.
2. Take the Averaged Player Salary (cap hit) for the current contract
3. Calculate the buy-out amount (as described above)
4. Spread the buy-out amount evenly over twice the remaining years of the contract
5. Take the number in #1 and subtract the number in #4. This is the “buyout savings”.
6. Take the cap hit from #2 and subtract the buyout savings from #5.

NOTE: This calculation has to be done for each year - meaning that the cap hit on a buyout will not necessarily be the same for all years (see examples below). It can even be negative (meaning the team gets a credit). However, it’s critical to have the correct information for #1 and #2 to get the correct cap hit. The cap hit on a buyout is only the same for all affected years if the remaining yearly salary is the same for all years. If it varies, then the cap hit on a buyout will vary.

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06-24-2010, 04:17 PM
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So.... Chip has a new story up about PK selling 49% of the team. In it he states that there is lots of interest.

http://blogs.newsobserver.com/canes/...-share-of-team


PK is in hopes of having the sale completed and have his partner by the end of summer. If and when this happens, what are the possibilities that they (PK and new owner) decide to spend more to make the team better?

I'm many miles away from having that kind of money, but doesn't it make sense that if the partner is found, the need to show a profit becomes less of a necessity? Maybe later this summer we'll have more to spend than we have right now. Or am I thinking too positively?

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06-24-2010, 04:20 PM
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DaveG
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#3 center (I can see Cullen staying on the market for a little while) and a defense upgrade are definitely possible if he gets this done by the end of July.

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06-24-2010, 04:28 PM
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Quote:
Originally Posted by DaveG View Post
#3 center (I can see Cullen staying on the market for a little while) and a defense upgrade are definitely possible if he gets this done by the end of July.
...and just as possible to *not* be done.

The new part-owner could be a major miser...we have no way of knowing.

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06-24-2010, 05:02 PM
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DaveG
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Originally Posted by geehaad View Post
...and just as possible to *not* be done.

The new part-owner could be a major miser...we have no way of knowing.
oh yeah, absolutely no question about that one in my books.

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