Buyout option

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pacadie

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Hi,

I need to know what percentage of a player salary is still counted on the salary cap when a team choose to buyout the contract of this player.

For example: Montreal's Roman Hamrlik will have a 5,5 millions $ salary next year. If GM Pierre Gauthier choose to buy Hamrlik contract, how much will still count on the Habs Cap? My guess is 75 % but I need to be sure.

Anyone can help me?

Thanks in advance!
 
I always thought it was 50%...not positive though



Edit: Just to be clear it's I thought 50% of whatever his salary is for that season. Say he had a salary where he made 10 mill the first year all the way down to 2 mill the last season. If you bought him out the last season he would only count half of the $2 mill. Again I could be wrong but I thought that was how that went.
 
Last edited:
2/3 of the buyout amount is still applicable to the cap - except for anyone who is over 35, in which case the entire amount is still applied against the salary cap.

Only way around it at this point I believe is sending guys down to the minors - at least in terms of the cap - and it is still the total average amount during that contract.
 
Hama said:
2/3 of the buyout amount is still applicable to the cap - except for anyone who is over 35, in which case the entire amount is still applied against the salary cap.

Only way around it at this point I believe is sending guys down to the minors - at least in terms of the cap - and it is still the total average amount during that contract.
Click to expand...

The 2/3 is spread out over double the remaining years as well. So for instance you owe a player 3m for each of the next 2 years. You buy him out. You pay 4m (6m times .6recurring) spread over 4 years.

This is a sort of confusing look but it covers everything

http://www.nhlscap.com/cap_faq.htm#buyouts
 
Hamrlik's unlikely to be bought out, IMO. They'll already be paying for Laraque for two years, and doubt they'd want to add any more fluff to the payroll. They'll either keep him on the team and move on next year or try to move him.
 
I don't think Hamrlik will be bought out. He still plays a fair number of minutes despite the lack of offense he once showed in the past. It would be more likely a trade to a team with lots of cap space would occur first...

Buyouts seem to vary depending on how the contracts are structured, and they still count against the cap. After looking at a some of the more notable buyouts, it could be anywhere from 40-70% of the remaining contract (and what their salary would have been for that season) and the team has to space out the payback timeframe on their cap hit...

Some buyouts to look at in the past few years: Yashin (Islanders), Emery (Senators), Avery (Stars), Bertuzzi (Ducks), Prospal (Lightning), Tucker (Leafs), Glen Murray (Bruins), Cloutier (Kings), Parrish (Wild), McKee (Blues).

Look at what Yashin's buyout did for the Islanders, and I'd hate to see if they ever have to buyout DiPietro...

Extremely long-term contracts may come back to haunt a team pretty quick...
 
Why bother. It is either Hamrlik at 5.5 or a Hamrlik buyout at about 3 and a mid-level defencemen at about 3. Although Hamrlik may not be great value at 5.5 he will still probably out-perform a free agent D signed at 3.

The wild card would be sending him to the minors, although I am not too sure how Montreal management would feel about paying 5.5 mil for a Bulldog.

You could also swing a trade if a team were desperate for verteran D-men, though it would almost be guranteed to have to include a dump the other way.
 
I have to agree, I think they are better off keeping him and letting him play. With the buyout cost and still having to pay to fill his minutes they are no better off.
 
They won't buy him out and nobody's taking him until March next year at the earliest. Only way they can unload that contract is by taking a stupider one in return.
 
Just thinking about this now, Lecavalier at 10 million for the next few years is gonna be tough to move, no matter how bad Montreal wants him.
 
Also, even if they managed to waive him to another team, the cap hit is going to 2.75M for the season. So Hamrlik will likely play out the last year of his contract or unless they manage to trade him, which is somewhat doubtful. His contract is not as bad as some of the following.

Also some possible candidates for overbloated contracts with approximate cap hits:
Wade Redden: 6.5M for the next four seasons remaining.
2009-10 season: 2G 12A +/-: +8 (left Ottawa for money and was unwilling to take a pay cut. Had 26pts and -5 in his first season with Rangers)
* other notes: falling out with coach Tortorella after being scratched for a game during the season. Thank Don Meehan and Glen Sather for the contract.

Chris Drury: 7.05M for the next two seasons remaining.
2009-10 season: 14G 18A +/-: -10 (had 56 and 58 point seasons previous with Rangers, and has not been able to perform as well as he once did with the Sabres).

Andrei Meszaros: 4.0M for next four seasons remaining.
2009-10 season: 6G 11A +/-: -14 (previous year with Lightning not much better and has not been able to put up anywhere near the offense since leaving Ottawa for money).

Jeff Finger: 3.5M for two more seasons remaining.
2009-10 season: was a healthy scratch 37 times during the season with the Leafs.

Didn't bother mentioning much about Cheechoo since he has only one year left on his contract and has been sent down to the AHL. Sometimes I gotta wonder if it is a lack of self-confidence/motivation or bad line chemistry..
 
xelloss1012 said:
Also, even if they managed to waive him to another team, the cap hit is going to 2.75M for the season. So Hamrlik will likely play out the last year of his contract or unless they manage to trade him, which is somewhat doubtful. His contract is not as bad as some of the following.

Also some possible candidates for overbloated contracts with approximate cap hits:
Wade Redden: 6.5M for the next four seasons remaining.
2009-10 season: 2G 12A +/-: +8 (left Ottawa for money and was unwilling to take a pay cut. Had 26pts and -5 in his first season with Rangers)
* other notes: falling out with coach Tortorella after being scratched for a game during the season. Thank Don Meehan and Glen Sather for the contract.

Chris Drury: 7.05M for the next two seasons remaining.
2009-10 season: 14G 18A +/-: -10 (had 56 and 58 point seasons previous with Rangers, and has not been able to perform as well as he once did with the Sabres).

Andrei Meszaros: 4.0M for next four seasons remaining.
2009-10 season: 6G 11A +/-: -14 (previous year with Lightning not much better and has not been able to put up anywhere near the offense since leaving Ottawa for money).

Jeff Finger: 3.5M for two more seasons remaining.
2009-10 season: was a healthy scratch 37 times during the season with the Leafs.

Didn't bother mentioning much about Cheechoo since he has only one year left on his contract and has been sent down to the AHL. Sometimes I gotta wonder if it is a lack of self-confidence/motivation or bad line chemistry..
Click to expand...

Burke has said that he would send contracts to the minors if he has to. The consensus belief is that he was talking about Finger.

Some other contracts that I would take Hamrlik over:
Souray
Horcoff
Thomas
Rozsival
DiPietro
Briere (though maybe not now)

Sorry I'm too lazy to look up the dollar figures
 
supercec said:
Burke has said that he would send contracts to the minors if he has to. The consensus belief is that he was talking about Finger.

Some other contracts that I would take Hamrlik over:
Souray
Horcoff
Thomas
Rozsival
DiPietro
Briere (though maybe not now)

Sorry I'm too lazy to look up the dollar figures
Click to expand...

Souary? Roszival? Really? They both make about a million less and are far better defenseman. If not for his cheap shot injury last year (the concussion from a dirty hit), Souray would have had as good of a year as the one prior, which was damn good. Souray's contract isn't golden, but it isn't the turd many think it is either. I won't argue with the rest of your list though.
 
This is all fluff talk about Hamrlik being bought out. It's not on their radar at all!

Is he overpaid? Arguably, yes. But understand why he and Redden got fat contracts to begin with. Supply and demand. There haven't been many formidable defencemen on the market recently. At another date and time, Hamrlik and Redden would make no more than $4M. But if you want one of these guys today (or a couple of years ago) then you had to pony up if you wanted to bolster your defence lines.

Hamrlik is a very good defenceman. Albeit, I saw him flat footed a few times during the playoffs. But as someone already said, they're not gonna buy him out and slot in a mediocre guy at $3M and call it a wash.

If anything, I see him being traded before being bought out. But with Markov out, what trade considerations can they consider. Since they would be focused on another defenceman in return, most likely, that already lessens trade flexibility. Might as well keep him one last year. Which, IMHO, isn't the worst thing they could do.
 
xelloss1012 said:
Also, even if they managed to waive him to another team, the cap hit is going to 2.75M for the season. So Hamrlik will likely play out the last year of his contract or unless they manage to trade him, which is somewhat doubtful. His contract is not as bad as some of the following.

Also some possible candidates for overbloated contracts with approximate cap hits:
Wade Redden: 6.5M for the next four seasons remaining.
2009-10 season: 2G 12A +/-: +8 (left Ottawa for money and was unwilling to take a pay cut. Had 26pts and -5 in his first season with Rangers)
* other notes: falling out with coach Tortorella after being scratched for a game during the season. Thank Don Meehan and Glen Sather for the contract.

Chris Drury: 7.05M for the next two seasons remaining.
2009-10 season: 14G 18A +/-: -10 (had 56 and 58 point seasons previous with Rangers, and has not been able to perform as well as he once did with the Sabres).

Andrei Meszaros: 4.0M for next four seasons remaining.
2009-10 season: 6G 11A +/-: -14 (previous year with Lightning not much better and has not been able to put up anywhere near the offense since leaving Ottawa for money).

Jeff Finger: 3.5M for two more seasons remaining.
2009-10 season: was a healthy scratch 37 times during the season with the Leafs.

Didn't bother mentioning much about Cheechoo since he has only one year left on his contract and has been sent down to the AHL. Sometimes I gotta wonder if it is a lack of self-confidence/motivation or bad line chemistry..
Click to expand...


If he gets claimed on waivers his whole contract goes to the new team. If he gets claimed on re-entry waivers then there would be the 2.75m cap hit. I dont think you have to worry about either scenario though id be surprised if someone took him.
 

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