CBA question re. option years in a SPC

Discussion in 'The Business of Hockey' started by Eradicator, Jul 8, 2006.

  1. Eradicator

    Eradicator Registered User

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    Reading thru Article 50.2 and more specifically Exhibit 16/Section 5 on Option Clauses it sounds like option years that are not picked up still count against the teams cap. Am I reading this correctly? If so which teams has this affected? Toronto with Belfour, Vancouver with Linden, any others?
     
    Last edited: Jul 8, 2006
  2. Captain Ron

    Captain Ron Registered User

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    I believe you are misunderstanding the statement. It basically is stating that if an option clause that pays money to player when the team does not pick up the option. Kind of like severance pay. That money would count against the cap. I haven't heard of option clauses that pay money to players when they are not exercised.

    For example......If the Rangers had a contract option for a player that stated. "If team does not exercise the contract option for said player then the Club shall pay the said player $500,000." This money would count aginst the teams cap.
     
  3. Irish Blues

    Irish Blues Still on hiatus

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    Colorado with Blake and Sakic apparently.

    Vancouver had this with Linden? I honestly had no idea ... means I have to get details on this.
     
  4. Eradicator

    Eradicator Registered User

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    Ok, that makes sense. How about Article 50.2, section C.

    For each League Year, "Actual Club Salary" for each Club shall be calculated as the sum of the folowing amounts:

    (i) The aggregate Player Salaries and Bonuses paid or earned for that League Year for al Players onthe Club's Active Roster, Injured Reserve, Injured Non Roster and Non Roster;plus

    (ii) All amounts earned inthat League Year by Players on account of Defered Salary and Defered Bonuses (in accordance with Section 50.2(a) and Section 50.2(b) respectively); plus

    (iii) All Ordinary Course Buyout Amounts paid in that League Year (in accordance with Section 50.9(i); plus

    (iv) All Player Salary and Bonuses earned in a League Year by a Player who is in the second or later year of a multi-year SPC which was signed when the Player was age 35 or older (as of June 30 prior to the League Year in which the SPC is to be effective), regardles of whether, or where, the Player is playing, except to the extent the Player is playing under his SPC in the minor leagues, in which
    case only the Player Salary and Bonuses in excess of $100,000 shall count towards the calculation of Actual Club Salary; plus

    (v) For SPCs entered into prior to the execution of this Agreement, the face amount of any vested option, the face amount resultant from a salary revision, a salaryor bonus guarantee, or other such compensatory provision in such 1995 Standard Player Contracts (see also Exhibit 16 ofthis Agreement regarding options); plus

    (vi) With respect to any new Player Salary or Bonus dispute between a Player and a Club arising after the execution of this Agreement (i.e., relating to Player Salaryand Bonuses payable on account of the 2005-06 League Year or any subsequent League Year), any amount paid (excluding interest) in satisfaction of any award or judgment relating to, or setlement of, any such dispute, but only to the extent that such amounts have not otherwise been included in the Player's Player Salary or Bonuses.
     
  5. Captain Ron

    Captain Ron Registered User

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    Basically that is the same thing that Exhibit 16 is refering too. Some contracts before the new CBA had provisions that guaranteed money would be given to a player in case a contract option was not exercised. This section deals with stating that these monetary amounts given will count against the club's cap figure and the players 54% share.
     

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