Compliance Buy Out

[ChaseSpace]

Also remember that Malone's NTC expires either this season or next so if we need to move him we can trade him for picks to clear up $4.5million in cap space.

[Donnie D]

I appreciate your perspective. And, as I pointed out, the negotiations are fluid and will probably not end up where they are today. There could be a further transition period or a multitude of other ideas.

I would point out that the Lightning can only trade Malone if other teams can or want to absorb that cap space. As you pointed out, with the reduction in cap space that is proposed, it is going to be even more difficult for trade a player in the early part of the CBA. The teams that have cap space can pick off the players that are cut for nothing. Malone might be attractive in a trade because his cap hit is higher than his actual salary.

You are correct that others have this problem. Among them:

Boston - 16 players $56 million
Pittsburg - 15 players $56 million
Minnesota - 16 players $56 million
Vancouver 13 players $60 million
Philly - 16 players $59.8 million

I don't see the players accepting this proposal as it stands. Perhaps "huge problem" is an overstatement, but it woudl be problematic for the Lightning if were to be accepted. And I still don't see Ohlund as the automatic buyout because that action alone doesn't get you where you need to be.

Face it, it's a Saturday night, the Russia / Germany game is on for the 2nd or 3rd time. I can't find a feed for the Cuse game. I have to have something to discuss.

[astro]

Having the cap drop to 60 million is a horrible deal for the players and most teams. Trying to find someone to eat up that cap space would be very difficult if not impossible to achieve.

[Jacko]

I have a different idea, but I'm not sure if Vinnik would be okay with losing money and if this idea even works, so please correct me.

Ohlund is on LTIR so his cap is only 50% that means around 3m. If you buyout somebody he gets 2/3 of his money.
So what about buying out Lecavaliers contract. He would get around 29m out of his 45m he would get from his contract. that means losing 16m. Then give him a new contract that has an average salary of 3m over the next 7 years. That means a total of 21m. So he gets a little bit more money and helps the team. The only one losing on this idea is Mister Vinnik and maybe he would be okay with it.

[Mike]

Originally Posted by Jacko

I have a different idea, but I'm not sure if Vinnik would be okay with losing money and if this idea even works, so please correct me.

Ohlund is on LTIR so his cap is only 50% that means around 3m. If you buyout somebody he gets 2/3 of his money.
So what about buying out Lecavaliers contract. He would get around 29m out of his 45m he would get from his contract. that means losing 16m. Then give him a new contract that has an average salary of 3m over the next 7 years. That means a total of 21m. So he gets a little bit more money and helps the team. The only one losing on this idea is Mister Vinnik and maybe he would be okay with it.

Sounds great in theory but the catch is that, under the past CBA, clubs were prevented from re-signing players they elected to buy out as doing so is effectively getting around the prohibition on contract renegotiations. If the league decides to change that policy under the terms of any new agreement that is reached, then such a plan could possibly work but would come with risk: Lecavalier would be free to negotiate with any team and would have a lot of leverage, if he so chose, to demand more than $3m per season to return to the Lightning. Best case scenario: you save $4.7m in cap space, which is a hair over $1m more than you'd reclaim in dead cap space by buying out Ohlund. Is that worth the cost of an extra $5m or so in real $ and the uncertainty as to whether the plan will yield the maximum benefit?

[MUDSHARK]

If I recall accurately teams are prohibited from resigning a player after a buy-out for at least a year.

[Mike]

Originally Posted by Donnie D

And, as I pointed out, the negotiations are fluid and will probably not end up where they are today. There could be a further transition period or a multitude of other ideas.

Especially poignant considering the league welcomed a counter-proposal from the players, which is due to be delivered today. League may very well be willing to budge on the $60m figure and push the ceiling upward in exchange for the PA accepting no limit on escrow.

Malone might be attractive in a trade because his cap hit is higher than his actual salary.

Another thing to consider is it is believed that the ability to trade salary (cap space?) will be part of the next CBA as it is something the league has proposed and doesn't seem to be objectionable to the PA. I am sketchy on any details, if they should exist, but if the Lightning were able to pay a portion of Malone's remaining salary, that would make him even more desirable.

[aapbolt]

I have been reading that the cap may be 67.5 for this year and the drop next year. Although Bettman did warn owners that the cap was going to drop this year.

[Mike]

Originally Posted by aapbolt

I have been reading that the cap may be 67.5 for this year and the drop next year. Although Bettman did warn owners that the cap was going to drop this year.

Yes, the compliance year would be 2013-2014.

[aapbolt]

Thanks Mike!