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Old 12-31-2018, 08:11 AM   #7
JeffR
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Join Date: Apr 2002
Location: Kelowna, BC
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Quote:
Originally Posted by TGH-Adfabre View Post
Thank you.

6) Finances: When a player is released or cut. Not waived.
The team pays the remainder of their owed salary including future years?
How is the salary counted against the cap? Does a percentage still count against the salary cap or is the entire salary removed from the Cap Hit?

I think I am referring to "Buying out a players rights".
It's a little complicated for the NHL - basically, the team pays a fraction of the remaining money owed, and then the total cap value is reduced a bit and spread over a period 2x the length remaning on the contract.

The actual cash amount of the buyout depends on the player's age: 25 or under, it's 1/3 of the remaining contract value, 26 or older it's 2/3.

The cap hit is where it gets complicated. Capfriendly.com has a good explanation of the step-by-step process to calculate that at https://www.capfriendly.com/buyout-faq , and they also have (under "calculators") a buyout calculator so you can see how it works in practice - Ryan Ellis has a good contract to use with that, it'll show you the odd year-to-year variations in cap hits that can result from a buyout.
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