Buyout Clauses?

Discussion in 'The Business of Hockey' started by DocHolliday, Jul 31, 2005.

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  1. DocHolliday

    DocHolliday Registered User

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    Does anyone have any idea how they will work with the cap? Specifically, I'm thinking about Ed Belfour. He has a 6M option for next year with a 2M buyout option for the team. Will the charge to the cap be the 2M buyout, or 2/3 of the 6M, or 2/3 of the 2M if Toronto chooses to buy him out? Does anyone know how this works yet?
     
  2. justapantherfan

    justapantherfan Registered User

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    Well from what I have read if it is done before I think Monday at noon, then nothing goes against the cap. If they would do it after the deadline then it would go against the cap.
     
  3. GSC2k2*

    GSC2k2* Guest

    I think the non-cap deadline was this past Friday.
     
  4. DocHolliday

    DocHolliday Registered User

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    Perhaps I was misunderstood. The buyout clause on Belfour is after this season and it's built in to the contract. Does anyone jknow how this will affect their cap next year if they choose to exercise the option?
     
  5. AH

    AH Registered User

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    If the Leafs choose to NOT exercise the option on Belfour's contract, then they owe him $2 million - 24%. That amount (approx. 1.5 million) counts against the Leafs 2006-2007 cap. So either you keep Belfour for 6 million - 24% (approx. 4.5 million) or give him 1.5 million and find a suitable replacement.

    Depending on how Eddie does this coming season, he could be a great bargain in 06-07, or the cost to not exercise his option plus find a suitable replacement could mean that the Leafs would be spending quite a bit for their starting goalie in 06-07.
     
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