Lunatik
Registered User
- Oct 12, 2012
- 56,251
- 8,384
When buying out a player it is based on a a combination bonuses and annual salary. Bonuses are paid at 100% value, annual salary at 2/3 but spread over 2 years. So buying out Lucic comes with very little cap or cash savings. Although due to the salary structure, the cash savings aren't an issue for the Flames as there is only $16m remaining on Lucic's contract. It creates very strange looking buyout penalties.When they say Lucic cannot be bought out due to the structure f his contract, what do they mean?
For example, if Lucic is bought out in 2021, it would be buying out the final 2 years of his contract and we'd have a 4 year cap penalty. The buyout penalty structure and how it would affect us would look like this:
- 2021-22: $3.572,917 (cap savings of about $1.68m) - this is far form ideal, but with 1.68m we can sign a decent bottom 6 replacement.
- 2022-23: $4,885,417 (cap savings of about $365k) - this really sucks since the league minimum salary will be 750k by then.
- 2023-24: $510,417 (no cap savings since the contract would be over) - this is a negligible amount
- 2024-25: $510,417 (no cap savings since the contract would be over) - this is a negligible amount
Where as a more standard buyout without varying salaries and no bonuses would have a flay buyout. For example, if Neal were bought out in 2021, his buyout would carry a penalty of about 1.9m for 4 years.