How does waiving a player affect the cap?

Discussion in 'The Business of Hockey' started by Riddick, Mar 9, 2006.

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  1. Riddick

    Riddick Registered User

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    Lets use Mogilny as an example. He was waived by NJ, but if he was picked up by another team, NJ would have had to paid half of his remaining contract, right? Ok, lets say thats all fine and good...what happens to NJ and the cap? Does his remaining contract(the part they(NJ) would pay) hit their cap? Or does it just kind of...disappear?
     
  2. Irish Blues

    Irish Blues Worth waiting for :)

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    If Team A waives a player, he no longer counts for the team once he clears waivers or is claimed by another team. If the player's team then uses him in a game (and here's where things are completely unclear) I would believe that he begins to count from the day he once again plays for his team.

    In the case of Mogilny, once New Jersey waived him another team could have picked him (and his contract) up and New Jersey would have incurred no cap hit. But once New Jersey sent Mogilny to the AHL, he would have had to clear recall waivers and that's where the "New Jersey takes half the cap hit if someone claims him" talk starts up. Technically, Malakhov was waived and never designated for assignment so he quit counting once he cleared waivers - so hopefully that answers all of your questions.

    This leaves the whole "player is claimed on recall waivers and later ends up to another team, what happens to the team that lost him on recall waivers" question still unanswered - but with Rico Fata going to Washington, we may get an answer on that shortly.
     
  3. Riddick

    Riddick Registered User

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    Thats pretty much my big question. Im thinking in terms of someone like Yashin, who essentially CANNOT be traded straight up, but for half his salary(3.5mil/year) he becomes hugely more affordable for other teams. It seems to be the best case scenario for someone of his contract length/cost.
     
  4. kdb209

    kdb209 Global Moderator

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    Actually, once Team B claims a player on waivers (or Team A does not remove him from their roster or later reinstates him), he immediately will count against Team B's (or A's) cap - a player claimed has to be added to the active roster - even if he hasn't played a game yet. NHL salaries are paid per day, not per game. If he is on an active NHL roster and is getting paid by a team, he counts against that teams cap.

    One other caveat.

    Normally a player who clears waivers and is removed from the active roster no longer counts against the cap, however there is an exception for a player 35 yo or older who signs a multi year deal - even if he is waived (or retires) he still counts against the teams cap during the second and later years of the contract (unless he is claimed or traded to another team).

    This clause was put in to prevent a team from signing an aging vet to a long term deal that neither expected the player to finish as a way to circumvent the cap.

    This clause affected Mogilney, Malakhov, and Andrechuk this year - actually it will begin to affect them next year.

    Mogilny no longer counts against the Devil's cap this year (since he was waived and removed from the roster and sent down), however, he will count against the Devil's cap next year.
     
  5. Irish Blues

    Irish Blues Worth waiting for :)

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    ;) I wasn't going to go into all the details - I had work to do.

    In seriousness though, we need to get this kind of stuff stickied here. This is the 12th time it's been asked.
     
  6. Riddick

    Riddick Registered User

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    yeah, but how much does he start to count against team B's cap? The full value of the contract or the 50% that each team winds up paying? And like i was asking prior, does team A not get any kind of cap hit after team B picks up the player?
     
  7. Hockeymomma

    Hockeymomma Registered User

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    Waivers vs Recallable Waivers

    Use Fata as an example. Pitt first put him on Waivers and he cleared. Pitt then recalled him - since he makes more than 75k in the minors (he has a one way) he was on Recallable Waivers. Atlanta picked him up and as a result they were only responsible for 50% of his remaining salary. Pitt pays the other half. Atlanta then put him back on Waivers and Wash opted to claim and they now only have to pay him at the 50% rate - Pitt is still paying the other 50%.
     
  8. kdb209

    kdb209 Global Moderator

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    It depends on the type of waivers - sending a player down or recalling him back up.

    If Team B claims a player on waivers when being sent down, Team B is responsible for 100% of the salary and cap hit for the remainder of the contract. Team A is completely off the hook.

    If Team B claims a player (earning >$75K in the minors) on recall waivers, both Team A and Team B are responsible for 50% of the salary and 50% of the cap hit for the remainder of the contract.

    The only thing that's uncertain is what happens after recall waivers and Team B sends the player down, recalls him, and he is claimed by Team C. My best guess then is that Team's B & C are each responsible 50% and Team A is off the hook.
     
  9. Irish Blues

    Irish Blues Worth waiting for :)

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    I hate to be the one that does this, but do you have a link to something that says this is the case? (Yes, I'm archiving this stuff for later use.)
     
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