Compliance buyouts are really the only way to get rid of the cap-circumventing contracts. From
CapGeek:
NOTE: During the ordinary course buyout periods in June 2013 and June 2014, teams will be permitted two compliance buyouts. Compliance buyouts follow the same formula as ordinary-course buyouts but do not count against the cap.
The new CBA added this:
CAP ADVANTAGE RECAPTURE (Roberto Luongo Rule)
Teams receiving a “cap advantage” from long-term contracts — defined as
seven years or more for contracts signed prior to the January 2013 CBA — will be penalized in the event the player retires or “defects” from the NHL before the contract expires. A team receives a “cap advantage” when the player’s actual salary exceeds his cap hit in a given year.
Following retirement/defection, the “advantage” will be “recaptured” and
charged against the club’s cap in equal amounts each year until the contract expires. This penalty applies to any team that received a cap advantage from the contract — ie. a traded contract — except in the event that the trade occurred prior to the new CBA coming into place in January 2013.
Teams do not receive a credit for seasons with negative cap benefit (where cap hit exceeds salary), the league confirmed to CapGeek.com.
Please note, contracts that
fall under the "over-35" rule do not qualify for cap benefit recapture, the NHL has confirmed.
With that said, the GM and players made a decision based on the CBA that was in effect at the time the deals were signed. We're now grandfathering in some penalties ~in case~ players actually avail themselves of the early retirement, which if I'm not mistaken doesn't punish the player in any way, just the team that gave out the contract. Furthermore, the application of recapture amounts to cap hits harms future players as whole because (a) buyout money counts against the players' share (and there is the Make Whole system to alleviate some of that); (b) counts against the cap hit meaning there is less money to be spent on other players. I suppose these contracts are somewhat rare and the cap may rise enough to not be a huge issue overall.
Nevertheless, I don't know that anyone is answering whether or not this process helped teams sufficiently to warrant the mortgaging of future cap space. I think the Hawks are one of the teams that is benefiting greatly from such a contract, and fortunately for them, they traded Campbell away in time to get some of that space back-- noting his deal was 8yrs but all the same per annum.
(Blah, liked calling you CB better.)
