CBA loophole?

[Art Vandelay]

Dunno if this been posted before but it's news to me.

Can this be something the Devils are counting on? Or are M&M not applicable to this becasue of their age when they signed?

Window to the future
A small, but perhaps significant, wrinkle in the collective bargaining agreement pertaining to buyouts: Contrary to common assumption, a club is able to issue a buyout even after free agency has begun. Typically, buyouts must be wrapped up prior to the annual July 1 free agency date. However, according to the CBA, a club is able to buy out any player within 48 hours after the settlement of an arbitration case -- not just the player in the case, but any player on the roster.

http://www.boston.com/sports/hockey/bruins/articles/2006/07/02/makeover_a_thing_of_beauty/?page=4

Click to read more...

 

[Ted Hoffman]

That refers to salary arbitration only - not any arbitration case.

Gosh, since we're picking on New Jersey this year, here's how it would work: say Gionta goes to arbitration and gets $4.5 million. The Devils could then buy out any player on the roster within 48 hours to make room for Gionta.

However, the buyout thing still wouldn't help them with Mogilny and Malakhov because the "35 and older" clause still applies even if those players are bought out. (See: Tie Domi, Toronto and Shawn McEachern, Boston)

The best hope New Jersey has is that Mogilny reports and fails his physical and doesn't retire at any point in '06-07. Then they can place him on Injured Non-Roster, he'd be unfit to play, and 50.10(d) would kick in and they'd get the injury exemption like they did last year for Elias.

The worst thing that could happen is that Mogilny decides to retire outright before the season starts, making it impossible for the Devils to get any injury relief on him.

 

[Bubba Thudd]

But it sounds like it says:

Player A goes to arbitration, and gets awarded a nice chunk of change.

The team opts to pay Player A that chunk, but cannot afford it under the cap.

But, with that clause, the team can buyout Player B to make room for Player A's salary. Even though Player B had nothing to do with any arbitration.

(Nevermind. I posted this as Irish Blues was making edits to his post.)

 

[dafoomie]

Is it even likely that NJ will get injury relief for Mogilny? I don't think being old is a valid injury.

Can the league or Mogilny do anything if NJ tries to make up some phony injury?

 

[No One]

Actually, the buyout clause is for the 48 hours following the third day of the LAST arbitration award.

Also, the number of "walk aways" has increased. In the old CBA it was no more than 3 in two years. Now, teams can walk-away from 1 if they are subject to one or two decisions, 2 if they are subject to 3 or 4 decisions, 3 if they are subject to 5 or 6 decisions, and so on.

I also could no longer find the "matcing clause" in the new CBA for "walk aways". Therefore, the team no longer has a right to match offers that are 80% or greater than the award.

 

[kdb209]

This is no loophole - it is just (as stated a bove) a mechanism to allow teams to get back under cap/budget after an arbitration award.

This is covered in Article 11.18 of the CBA and paragraph 13(c)(ii) of the Standard Players Contract.

This Buyout outside the Regular Period is only for teams with two or more arbitration cases, and may be done in a 48 hour window starting 3 days after after the last arbitration award (or settlement if the team/player sign a deal before the arbitration award is announced).

Note that this option is not available to teams with zero or one arbitration cases during the offseason.

11.18 Ordinary Course Buy-Outs Outside the Regular Period.

Clubs shall have the right to exercise Ordinary Course Buy-Outs outside the regular period for Ordinary Course Buy-Outs in accordance with Paragraph 13(c)(ii) of the SPC. Each Club shall be limited to no more than three (3) such buyouts over the term of this Agreement pursuant to Paragraph 13(c)(ii) of the SPC. However, in the event that a Club has only one salary arbitration hearing pursuant to Section 12.3(a) in a given League Year, such Club shall not be entitled to exercise such a buyout outside the regular period for Ordinary Course Buy-Outs. No Club shall exercise an Ordinary Course Buy-out outside the regular period for any Player earning less than $1 million.

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 folowing 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 caled "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 efective 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 ofJune 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 (i) settlement of its last case (provided such award was received or such setlement occured after 7:00 p.m. New York time; awards or setlements that occured or were received after 7:00 p.m. New York time wil be deemed to have occured or received the folowing business day for purposes of this provision).​

 

[kdb209]

However, the buyout thing still wouldn't help them with Mogilny and Malakhov because the "35 and older" clause still applies even if those players are bought out. (See: Tie Domi, Toronto and Shawn McEachern, Boston)

Do you have any links confirming that bought out players are still subject to the Mogilney/Malakhov rule.

My reading of the CBA leads me to beleive that they would not, but I admit this is a grey area.

This would be a case of double dipping, since the buyout payments are explicitly listed as being counted immediately before the 35+ clauses, and that the buyout terminates the contract so that a player would not be "in the second or later year of a multi-year SPC which was signed when the Player was age 35 or older".

(5) 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 of the League Year in which the SPC is to be effective), but which Player is not on the Club's Active Roster, Injured Reserve, Injured Non Roster or Non Roster, and regardless 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 Averaged Club Salary; plus

 

[Ted Hoffman]

See news reports on buyouts of Tie Domi and Shawn McEachern - they were both 35 when they signed in 2005, both got '06-07 bought out, and both still count in full for '06-07.