Daniel Alfredsson's contract

Discussion in 'Fugu's Business of Hockey Forum' started by danishh, Jul 2, 2007.

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  1. danishh

    danishh Registered User

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    I was wondering if anyone (specifically IrishBlues) had info on the structure of Daniel Alfredsson's current contract.

    I know it was a multi year deal with 3 team option years at the end, where the team option years are 3.8M and the cap hit is like 4.3M.

    i know the suggested course of action would be for the team to agree to a contract extention with alfie and then decline the option years, so they can lower the cap hit but alfie gets payed the same amount.

    What i really want to know is if the option years affected his cap hit. If that was the case, what prevents teams from signing a guy to say a 6 year contract with salaries of $5M, $6M, 3M option, 1.5M option, 0.75M option, and then agreeing with the player to decline the option, essentially getting a $5.5M player for 3.3M cap hit?
     
  2. FireMelnyk

    FireMelnyk Registered User

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    I don't think option years are allowed under the new CBA. Alfie signed his deal before the CBA so his option years are still there.
     
  3. kdb209

    kdb209 Registered User

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    Correct. Any type of option or voidable years are not permitted under the new CBA. Pre lockout contracts with options were grandfathered in.

    If an option is vested (ie not contingent on the player or team meeting any future conditions) it is treated as exercised when calculating the averaged cap hit. If an option is contingent on some set of conditions, then the option is ignored for cap purposes until it vests.

    The gory details are spelled out in the transition rules in CBA Exhibit 16.5.
     
  4. Irish Blues

    Irish Blues Present once again

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    The option years do indeed affect his cap number. The options are team/player; I think Alfredsson triggers it if he hits 70 points in the season before the option, but if he doesn't the team can still choose to pick it up. The fact that one side can exercise the option at its discretion without needing some performance to be achieved makes it get treated as a vested option - and thus it's counted in the calculation for the cap number.

    I probably have notes on the exact details of those option triggers somewhere, I'll try to dig them out this week (when I'm not working on the site ... or working at work ... or spending time with the family ... or ....) .
     
  5. danishh

    danishh Registered User

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    dont worry about it IB, the gist of my question has been answered. Basically, because there cant be option years anymore, this cant be a loophole to cap numbers
     

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