June 15-30 NHL Contract Buyout Period

[BigFatCat999]

So if a player is bought out he can re-sign with the original team for a lower price?

 

[Marc the Habs Fan]

So if a player is bought out he can re-sign with the original team for a lower price?

I think only for the season after, not the upcoming one. The Coyotes bought out Nokelainen last summer and re-signed him a few weeks ago.

 

[LadyStanley]

So if a player is bought out he can re-sign with the original team for a lower price?

I think only for the season after, not the upcoming one. The Coyotes bought out Nokelainen last summer and re-signed him a few weeks ago.

And the reason for that prohibition is that it would be considered a cap circumvention.

 

[kdb209]

So if a player is bought out he can re-sign with the original team for a lower price?

I think only for the season after, not the upcoming one. The Coyotes bought out Nokelainen last summer and re-signed him a few weeks ago.

And the reason for that prohibition is that it would be considered a cap circumvention.

There are no restrictions in the CBA against a team buying out a player and then re-signing them within a year.

There was a restriction on the Compliance Buy Outs immediately after the Lockout (where a team could buy out players with no future cap hits) - they were prohibited from reacquiring the player (by re-signing, trade, or waivers) for the duration of the '05-'06 League Year.

That said, if a team bought out a player and then resigned the player, that COULD trigger an investigation for Circumvention - especially if it can be reasonably shown, even by circumstantial evidence, that there was some agreement between the team & player prior to the buyout to re-sign.

 

[Tawnos]

Question related to this period's buyout deadlines. Rangers reporters are widely saying that Drury had to be on waivers by today if they wanted to buy him out (let's ignore his NMC just for the moment). According to what I know of the CBA, the waiver period is 24 hours. With June 30th being on Thursday, wouldn't that mean that they could put him on waivers tomorrow?

Also, the CBA says that the deadline for supplying a notice of termination is June 30th and not necessarily the deadline for the buyout. Would that mean that the Rangers can supply the notice of termination Thursday morning, put Drury on waivers Thursday at noon and still be able to buy him out?

Thanks for your help.

 

[LadyStanley]

Player has to clear waivers by Thursday to be bought out.

So if it's 24 hour waiver, has to be put on not later than Wednesday (noon ET).

 

[Tawnos]

Player has to clear waivers by Thursday to be bought out.

So if it's 24 hour waiver, has to be put on not later than Wednesday (noon ET).

I know I'm the one asking the question here, but looking at the CBA, I don't see where it says that waivers need to be cleared before the end of the buyout window, only that he needs to be offered on waivers before then. It sounds like the notice of termination (which has to come after or just before waivers) is what is subject to the deadline.

Adding on, there is precedent of a player being bought out after being put on waivers June 30th... http://communities.canada.com/calga...rchive/2010/06/30/nigel-dawes-on-waivers.aspx and http://tsn.ca/nhl/teams/players/bio/?id=3401

The deadline isn't for the buyout agreement, the deadline is for the notice of termination which has to either come after or simultaneously with waivers.

 

[mouser]

Agreed, the deadline is for the notice to be filed with the NHLPA and Central Registry, not the actual clearing of waivers.

13. The Club, in addition to other rights hereunder, at its option, by written notice delivered
to the Player in person, or by overnight mail to the Player's address set forth herein, may
terminate this SPC on the following conditions:

(a) The Club shall offer the Player on Unconditional Waivers, either before or
promptly after the notice of intention to exercise the Ordinary Course Buy-Out
option (herein called "notice of termination") is given.

(b) Termination pursuant to this Paragraph shall be effective upon receipt by the
Player of the notice of termination and the Player clearing Unconditional Waivers
pursuant to Paragraph 13(a) above.

(c) The notice of termination shall be effective if given in the form attached as
Exhibit 20, with a copy faxed to the NHLPA and Central Registry as follows:

(i) beginning the later of June 15 or forty-eight (48) hours after the
conclusion of the Stanley Cup Finals and ending at 5:00 p.m. New York time on June 30; and

(ii) For Clubs who have Club or Player elected Salary Arbitration filings
pursuant to Article 12, within the forty-eight (48) hour period beginning on the third day
following the later of: (i) the Club's receipt of its last salary arbitration award; or (ii) settlement
of its last case (provided such award was received or such settlement occurred after 7:00 p.m.
New York time; awards or settlements that occurred or were received after 7:00 p.m. New York
time will be deemed to have occurred or received the following business day for purposes of this
provision).

 

[Hawkscap]

If Drury is hurt, how did he get bought out?

 

[Tawnos]

As I understand it, Drury would have had to file paperwork in order to block the buyout. He obviously didn't. If he's really hurt, we can only speculate the reasons why he accepted the buyout. It also could be that his knee condition wouldn't have been considered an injury.

 

[tuponlol]

To be clear, Drury still needs to go through waivers, right?

 

[Tawnos]

No. In my original post I said to ignore for the moment his no movement clause. The NMC gives him the option to reject going on waivers and proceed straight to the actual buyout. This is what he did.

 

[Jonas1235]

Drury will probably join a team around Christmas when he's healthy and ready for a playoff push and good for him. Great guy and it just didn't work out in New York.