Hodgson a potential buyout candidate?

[Ron C.]

Cody Hodgson has 3 years left averaging 4.5M per season. The "Ordinary" buy-out provision in the CBA allows for 1/3 contract payment spread out over twice the length of the remaining contract for players under the age of 26. Once a player reaches the age of 26, the payment becomes 2/3 the remaining amount. Cody will turn 25 in February.

So the questions remain: Is Cody in the Sabres plans for the future? Does he have a positive trade value given his lack of production and overall hockey sense? Would he even be claimed on waivers? Given the answers to these questions, do the Sabres let him get to age 26 on this roster?

This year, the buyout cost would be 750K over 6 years.

Click to read more...

 

[Beerz]

He most certainly is a candidate .... will it happen? .. I don't know.

 

[JLewyB]

what would the cap hit be ?

 

[Gabrielor]

Don't think so. He's young enough that I think he could still rebound, or be dealt. Even if his trade value isn't what it once was.

 

[Paxon]

He's definitely not a buyout candidate right now. It's not something to even consider unless and until the Sabres start getting tight to the cap. In the meantime, it's premature to assume he's untradeable.

 

[Beerz]

He's definitely not a buyout candidate right now. It's not something to even consider unless and until the Sabres start getting tight to the cap. In the meantime, it's premature to assume he's untradeable.

Yes but .. if buying him out now is cheaper and less of a burden than 2 or 3 years from now .. (which i think it is) .. You have to at least consider it.

 

[BoHorvat 53]

I don't think he's at the negative value point. He still can likely fetch at least a 4th/5th IMO

 

[dotcommunism]

what would the cap hit be ?

For a buyout during the 2015 offseason, Hodgson would receive a buyout payment of $791,667 every year through the 2022-2023 season. His cap hit over that period would break down as follows:
2015-2016: $1,041,667
2016-2017: $541,667
2017-2018: $41,667
2018-2019: -$458,333
2019-2020: $791,667
2020-2021: $791,667
2021-2022: $791,667
2022-2023: $791,667

For comparison's sake, if Hodgson were bought out during the 2016 offseason, he would receive a buyout payment of $1,666,667 every year through the 2021-2022 season. His cap hit over that period would break down as follows:
2016-2017: $1,416,667
2017-2018: $916,667
2018-2019: $416,667
2019-2020: $1,666,667
2020-2021: $1,666,667
2021-2022: $1,666,667

Likewise, if he were bought out during the 2017 offseason, he would receive a buyout payment of $1,750,000 each year through the 2020-2021 season. His cap hit over that period would break down as follows:
2017-2018: $1,000,000
2018-2019: $500,000
2019-2020: $1,750,000
2020-2021: $1,750,000

And if he were bought out during the 2018 offseason, with one year remaining on his contract, he would receive a buyout payment of $1,833,333 each year for 2018-2019 and 2019-2020, with his cap hit as follows:
2018-2019: $583,333
2019-2020: $1,833,333

So there is certainly an incentive for the Sabres to buy out Hodgson now, if they are convinced he's not going to have value going forward. That said, for the near future the salary floor is going to be a bigger concern for Buffalo than the ceiling. So it might make sense to keep Hodgson and let him try to rebuild value for that time period. Furthermore, an earlier buyout is going to leave a cap hit on the books for more years when the cap is going to be a bigger issue, even if it is a relatively small cap hit. Also, buying out Hodgson at a later date, if necessary, would not be particularly hard to deal with from a cap management perspective.

 

[Beerz]

For a buyout during the 2015 offseason, Hodgson would receive a buyout payment of $791,667 every year through the 2022-2023 season. His cap hit over that period would break down as follows:
2015-2016: $1,041,667
2016-2017: $541,667
2017-2018: $41,667
2018-2019: -$458,333
2019-2020: $791,667
2020-2021: $791,667
2021-2022: $791,667
2022-2023: $791,667

For comparison's sake, if Hodgson were bought out during the 2016 offseason, he would receive a buyout payment of $1,666,667 every year through the 2021-2022 season. His cap hit over that period would break down as follows:
2016-2017: $1,416,667
2017-2018: $916,667
2018-2019: $416,667
2019-2020: $1,666,667
2020-2021: $1,666,667
2021-2022: $1,666,667

Likewise, if he were bought out during the 2017 offseason, he would receive a buyout payment of $1,750,000 each year through the 2020-2021 season. His cap hit over that period would break down as follows:
2017-2018: $1,000,000
2018-2019: $500,000
2019-2020: $1,750,000
2020-2021: $1,750,000

And if he were bought out during the 2018 offseason, with one year remaining on his contract, he would receive a buyout payment of $1,833,333 each year for 2018-2019 and 2019-2020, with his cap hit as follows:
2018-2019: $583,333
2019-2020: $1,833,333

So there is certainly an incentive for the Sabres to buy out Hodgson now, if they are convinced he's not going to have value going forward. That said, for the near future the salary floor is going to be a bigger concern for Buffalo than the ceiling. So it might make sense to keep Hodgson and let him try to rebuild value for that time period. Furthermore, an earlier buyout is going to leave a cap hit on the books for more years when the cap is going to be a bigger issue, even if it is a relatively small cap hit. Also, buying out Hodgson at a later date, if necessary, would not be particularly hard to deal with from a cap management perspective.

Buying him out in 2015 ...says cap hit would be 41K in 2017-2018 ... is that a typo? ..

 

[Takeo]

The reaction on this message board the day he was acquired was classic. And less than three years later we're talking buyout.

 

[Ron C.]

Thanks to dotcommunism for the breakdown. I tried to comb through the CBA, but info is hard to find and the read is drier than Steven Wright.

 

[SackTastic]

Cody Hodgson has 3 years left averaging 4.5M per season. The "Ordinary" buy-out provision in the CBA allows for 1/3 contract payment spread out over twice the length of the remaining contract for players under the age of 26. Once a player reaches the age of 26, the payment becomes 2/3 the remaining amount. Cody will turn 25 in February.

So the questions remain: Is Cody in the Sabres plans for the future? Does he have a positive trade value given his lack of production and overall hockey sense? Would he even be claimed on waivers? Given the answers to these questions, do the Sabres let him get to age 26 on this roster?

This year, the buyout cost would be 750K over 6 years.

Hodgson is under contract through 18-19, 4 years remaining. Because of the larger cap savings , the cap hits would be onerous.

This is a terrible idea.

 

[dotcommunism]

Buying him out in 2015 ...says cap hit would be 41K in 2017-2018 ... is that a typo? ..

It's not. The cap hit is calculated as (Regular cap hit) - (Buy-out savings), with the "Buy-out savings" being defined as the original salary minus the amount the player will be paid per the terms of the buyout. So, the formula becomes (Regular cap hit) - [(Original player salary) - (Buy-out amount)]

Hodgson's present cap hit under his SPC is $4.25M. His player salary for 2017-2018 under his SPC is $5,000,000, while he would be paid $791,667 per the terms of the Buy-out. That results in a "Buy-out savings" of $4,208,333. Subtracting that from his original cap hit gives us the resulting cap hit of $41,667.

That is also how a negative cap hit results for the 2018-2019 season, as Hodgson is currently set to be paid $5.5M that season.

 

[Der Jaeger]

I wouldn't. It's worse than selling low.

Wait until he's playing with better talent to consider moving him, if you still want to at that point.

 

[Beerz]

It's not. The cap hit is calculated as (Regular cap hit) - (Buy-out savings), with the "Buy-out savings" being defined as the original salary minus the amount the player will be paid per the terms of the buyout. So, the formula becomes (Regular cap hit) - [(Original player salary) - (Buy-out amount)]

Hodgson's present cap hit under his SPC is $4.25M. His player salary for 2017-2018 under his SPC is $5,000,000, while he would be paid $791,667 per the terms of the Buy-out. That results in a "Buy-out savings" of $4,208,333. Subtracting that from his original cap hit gives us the resulting cap hit of $41,667.

That is also how a negative cap hit results for the 2018-2019 season, as Hodgson is currently set to be paid $5.5M that season.

Thanks.

 

[SackTastic]

For a buyout during the 2015 offseason, Hodgson would receive a buyout payment of $791,667 every year through the 2022-2023 season..

He's owed $19M after this year. Buyout is $6.27M / $783,750 over 8.

 

[Ron C.]

Hodgson is under contract through 18-19, 4 years remaining. Because of the larger cap savings , the cap hits would be onerous.

This is a terrible idea.

http://stats.nhlnumbers.com/teams/BUF?year=2015

This site says otherwise. Do you have more accurate information?

Edit: I found the expand button. Yes, there are 4 additional years. All the more reason not to let this dish towel hit age 26.

 

[dotcommunism]

He's owed $19M after this year. Buyout is $6.27M / $783,750 over 8.

19 divided by 3 is 6.333333...

 

[SackTastic]

http://stats.nhlnumbers.com/teams/BUF?year=2015

This site says otherwise. Do you have more accurate information?

http://web.archive.org/web/20140723180016/http://www.capgeek.com/player/732

 

[SackTastic]

19 divided by 3 is 6.333333...

My fault, somehow "/3" got switched to "*.33" on my spreadsheet. Yeesh....

 

[Ron C.]

http://web.archive.org/web/20140723180016/http://www.capgeek.com/player/732

Thanks. I will bookmark CapGeek Archives. No other site comes close...I hope someone is able to take over this site. That being said, a decision needs to be made on Hodgson (although I'm sure it has been already). He is not a player I want long term.

 

[Bps21*]

Even Nolan has completely given up on him...and he really doesn't have anything better to do at this point.

As soon as this season ends...get him gone by any means necessary.

 

[SackTastic]

Thanks. I will bookmark CapGeek Archives. No other site comes close...I hope someone is able to take over this site. That being said, a decision needs to be made on Hodgson (although I'm sure it has been already). He is not a player I want long term.

Nobody is taking over Capgeek. It's permanently down and will not be taken over.

Also, you're advocating the nuclear option for this player, and that's not smart. There's no reason to ordinary course buyout a player unless he's completely untradeable. Having dead money on your cap, of any amount, is a terrible plan under the NHL's cap system. (Well, at least for teams like the Sabres that have the resources to go to the cap whenever they want.)

 

[Bps21*]

I'd rather have millions on the cap for him to be gone than one penny on it with him on the ice.

 

[Zip15]

****can Nolan first. See how he performs under a new coach and a team that can find the offensive zone without a guide dog. If he still doesn't produce, let's have this conversation.