Question regarding NHL player contracts

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Question regarding NHL player contracts

Postby Paul Baxter on Sat Jun 28, 2014 9:44 am

Can NHL teams just cut a player that is already under contract in order to eliminate the team's contract obligations to the player, i.e. eliminate the player's salary? I believe this is the way it works in the NFL, but not sure about the NHL. If this can be done, I would cut Craig Adams in a heart beat, a total waste of salary cap space. Thanks in advance for all replies.
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Re: Question regarding NHL player contracts

Postby GeoTank on Sat Jun 28, 2014 9:46 am

It's a buyout. Just like the nfl. You have to take a portion of the contract as a cap hit.
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Re: Question regarding NHL player contracts

Postby Paul Baxter on Sat Jun 28, 2014 9:50 am

GeoTank wrote:It's a buyout. Just like the nfl. You have to take a portion of the contract as a cap hit.


OK, thanks, GeoTank. So, is the buyout amount already negotiated in the existing contract? Or would it be a whole new negotiation?
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Re: Question regarding NHL player contracts

Postby davemess on Sat Jun 28, 2014 9:50 am

No you cant just cut players, their contacts are fully guaranteed.

Only exception is to do a "buyout" where you pay roughly 2/3 of the remaining money to make the player go away. You do save that money from your cap. There are however strict rules about how often and who can be bought out.
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Re: Question regarding NHL player contracts

Postby GeoTank on Sat Jun 28, 2014 10:05 am

HOW DO BUYOUTS WORK?
Please note, this FAQ entry refers to ordinary-course buyouts that count against the cap. For details on compliance buyouts that do not count against the cap, please read our separate FAQ entry titled "How do compliance buyouts work?"
Teams are entitled to buy out player contracts for a portion of the remaining value of the contract — paid over a period of twice the remaining length of the contract. Following are the buyout amounts:
Younger than age 26 at the time of buyout, 1/3 the remaining value
Age 26 or older at the time of the buyout, 2/3 the remaining value
When a player is bought out, the team still takes a cap hit for the player over a period of twice the remaining length of the contract. The amount of the cap hit (by year) is determined as follows:
Take the actual salary due for each remaining year
Take the Averaged Player Salary (cap hit) for the current contract
Calculate the buyout amount (as described above)
Spread the buy-out amount evenly over twice the remaining years of the contract
Take the number in No. 1 and subtract the number in No. 4. This is the "buyout savings."
Take the cap hit from No. 2 and subtract the buyout savings from No. 5.
This calculation is done for each year, meaning the buyout cap hit is not necessarily the same for all years. It can even be negative, meaning a team can receive a credit.
This formula also applies to 35-plus contracts. (More: What's a 35-plus contract?)


This is pulled from Capgeek your one stop shopping for all cap related questions

http://www.capgeek.com/faq/how-do-buyouts-work
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Re: Question regarding NHL player contracts

Postby Paul Baxter on Sat Jun 28, 2014 10:08 am

davemess wrote:No you cant just cut players, their contacts are fully guaranteed.

Only exception is to do a "buyout" where you pay roughly 2/3 of the remaining money to make the player go away. You do save that money from your cap. There are however strict rules about how often and who can be bought out.


OK, thanks, daverness, that's very helpful. In order to reduce cap space, I wonder if it makes sense to buy out Craig Adams and Taylor Pyatt? Both of them are horrible skaters, way too slow, and I don't see either one of them helping the team next season. Or, maybe they can ship both of them to Buffalo or Edmonton for a bag of pucks. :P
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Re: Question regarding NHL player contracts

Postby Paul Baxter on Sat Jun 28, 2014 10:11 am

GeoTank wrote:
HOW DO BUYOUTS WORK?
Please note, this FAQ entry refers to ordinary-course buyouts that count against the cap. For details on compliance buyouts that do not count against the cap, please read our separate FAQ entry titled "How do compliance buyouts work?"
Teams are entitled to buy out player contracts for a portion of the remaining value of the contract — paid over a period of twice the remaining length of the contract. Following are the buyout amounts:
Younger than age 26 at the time of buyout, 1/3 the remaining value
Age 26 or older at the time of the buyout, 2/3 the remaining value
When a player is bought out, the team still takes a cap hit for the player over a period of twice the remaining length of the contract. The amount of the cap hit (by year) is determined as follows:
Take the actual salary due for each remaining year
Take the Averaged Player Salary (cap hit) for the current contract
Calculate the buyout amount (as described above)
Spread the buy-out amount evenly over twice the remaining years of the contract
Take the number in No. 1 and subtract the number in No. 4. This is the "buyout savings."
Take the cap hit from No. 2 and subtract the buyout savings from No. 5.
This calculation is done for each year, meaning the buyout cap hit is not necessarily the same for all years. It can even be negative, meaning a team can receive a credit.
This formula also applies to 35-plus contracts. (More: What's a 35-plus contract?)


This is pulled from Capgeek your one stop shopping for all cap related questions

http://www.capgeek.com/faq/how-do-buyouts-work


Thanks so much, GeoTank, I really appreciate the info! :D
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Re: Question regarding NHL player contracts

Postby sil on Sat Jun 28, 2014 10:12 am

Tay Pyatt is an UFA. No need to worry about him.
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Re: Question regarding NHL player contracts

Postby Paul Baxter on Sat Jun 28, 2014 10:15 am

sil wrote:Tay Pyatt is an UFA. No need to worry about him.


Oh, that's a relief!!! Glad to know Pyatt is gone! :)

Unfortunately, we're still stuck with Craig Adams, one of Shero's favorites. :face:
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Re: Question regarding NHL player contracts

Postby Beveridge on Sat Jun 28, 2014 2:23 pm

The thing with Adams is his contact is below the 900k threshold so he could be put on waivers and be picked up or clear and be sent to WBS and take away the cap hit.

In other words, Craig Adams has no barring on our cap if management doesn't want him at all on the roster.
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Re: Question regarding NHL player contracts

Postby GeoTank on Sat Jun 28, 2014 2:29 pm

His cap hit is also low enough that keeping him as a 13th forward isn't a horrible idea. He can PK very nicely. Now I read somewhere here that it was reported he reported on players to DB.... That can't be good to keep around either if it's true.
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Re: Question regarding NHL player contracts

Postby Paul Baxter on Sat Jun 28, 2014 4:10 pm

GeoTank wrote:His cap hit is also low enough that keeping him as a 13th forward isn't a horrible idea. He can PK very nicely. Now I read somewhere here that it was reported he reported on players to DB.... That can't be good to keep around either if it's true.


Wow, that is very interesting stuff, GeoTank. So, that explains why he was such a favorite of Shero and Bylsma. :roll: I think Adams envisions himself as a kind of elder statesman who everyone is supposed to respect, but, personally, I think the guy sucks. If I'm not mistaken, I believe he has one of the very worst 5-on-5 stats in the entire league, and I can definitely believe that, because he's an awful skater and has no skill. Personally, I think he's greatly overrated as penalty killer. I really hope the new regime gets rid of him.
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Re: Question regarding NHL player contracts

Postby She'sTheFastest on Sat Jun 28, 2014 10:29 pm

Up and ADAMS!
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