mikey287 wrote:Maybe I can be of some minor assistance in quelling some fears...
Basically the way it works currently, AIUI...each team has a small handful of contracts that they insure through a group (based out of Long Island, BWD? something like that), usually 5 or 7 or so. It's too expensive to insure all of the contracts a team has (~45-50). These contracts can be insured for up to 7 years. Insurance kicks in when a player misses 30 games.
Again, this is just what I've kind of pieced together through various places and from memory...but I believe I have the rough idea...
If a player is injured during an insured contract and cannot continue playing for his career. The team will continue to pay his contract out but will (likely) be aided by the insurance. If a player formally announces that he retires voluntarily (i.e. makes no mention of his inability to perform due to injury) the team is off the hook for the remainder of the salary. I believe (believe, not gospel) that the player will receive his total contract whether it is via insurance or the team paying his salary. The max a contract can be insured for (under the NHL group policy) is 7 years. After that, the team is solely responsible for any further payment. In terms of salary cap relevance, (mind you, this is current rules, there is a new CBA in the offing) Crosby would not count against the salary cap during the playing year in the event that he is placed on LTIR (long-term injured reserve). During the offseason, there is no injured reserve. He will count fully during the offseason. As per current rules, each team is allowed to exceed the Upper Limit by 10% during the offseason. However, they must return to a compliant state prior to their first game of the regular season.
Short version (based on current rules and 10 yr/$90 M contract)
- League has insurance policy for some, it covers up to 7 years
- Player will get his money, but team will be aided by insurance payments in fulfilling the obligation in the event of an injury
- Counts against the cap in the offseason regardless (unless voluntary retirement), will not count during the season when placed on LTIR
Informative post but I have 2 thoughts on this topic
1. Why would any insurance company insure a guy who missed this much time to injury especially to the head?
2. There is no way, even if Sid is on long term IR that the pens can replace his salary for too long. Understanding that ownership would on a deadline deal an risk a few millions based off of potential for a long cup run.....but if crosby is ltir for a season and there isn't much if any insurance we are basically out his cap space until the trade deadline.
Not a knock on the pens just probably what's going to happen. I would highly doubt they even bring in even half his salary for an entire season.
The cap space clears but they still have to pay the extra money.