Now the NHL's season is officially over, things are going to move rapidly as the draft is this weekend, and free agency next week. I just want to clarify things in regards to "buyouts".
To highlight how a "buyout" works.
First of all, to any guy on a 35+ contract, there is no "buyout". You can cut, demote, but you are paying it. That is why the Pens were stuck with Jeff Carter. So buying out say Geno or Letang does nothing for you.
Here are the rules, and then a good example of application:
For players that are 26 or older, a buyout is 2/3 of the remaining salary owed on the contract. For players that are under 26, a buyout is 1/3 of the remaining salary owed on the contract. All buyouts are spread out over twice the remaining years of the contract.
So what does this mean? Say you want to buy out Ryan Graves. According to CapFriendly, he has 5 years remaining at an AAV of $4.5 Million per year. Buying him out? That means the cap hit for the Pens will be $3 million for the next TEN YEARS!!! Same with Jarry. He is owed $5.375 per year over the next 4. A buyout means the cap hit would be $3.6 million over 8 years.
That is why say you can get a trade for Graves, and you would have to retain $1.5 million per year, even if it is a bag of pucks, it is much better for your cap and long (and short) term than a buyout. The Pens are still paying against the cap for Jack Johnson the next 2 seasons at ~ $900K per year.
For guys under the age of 26, it is 1/3 the AAV (cap hit) over twice the life of the contract.
Hope this helps if there are questions.
To highlight how a "buyout" works.
First of all, to any guy on a 35+ contract, there is no "buyout". You can cut, demote, but you are paying it. That is why the Pens were stuck with Jeff Carter. So buying out say Geno or Letang does nothing for you.
Here are the rules, and then a good example of application:
For players that are 26 or older, a buyout is 2/3 of the remaining salary owed on the contract. For players that are under 26, a buyout is 1/3 of the remaining salary owed on the contract. All buyouts are spread out over twice the remaining years of the contract.
So what does this mean? Say you want to buy out Ryan Graves. According to CapFriendly, he has 5 years remaining at an AAV of $4.5 Million per year. Buying him out? That means the cap hit for the Pens will be $3 million for the next TEN YEARS!!! Same with Jarry. He is owed $5.375 per year over the next 4. A buyout means the cap hit would be $3.6 million over 8 years.
That is why say you can get a trade for Graves, and you would have to retain $1.5 million per year, even if it is a bag of pucks, it is much better for your cap and long (and short) term than a buyout. The Pens are still paying against the cap for Jack Johnson the next 2 seasons at ~ $900K per year.
For guys under the age of 26, it is 1/3 the AAV (cap hit) over twice the life of the contract.
Hope this helps if there are questions.