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Teams Will Have Issues With The Cap Recapture

from Michael Russo of the Star Tribune,

The NHL’s “cap recapture” bothered me, which is why I sat down with NHL Deputy Commissioner Bill Daly in New York last Monday, to have him explain why this concept is kosher.

Cap recapture is a punishment clause jammed into the 2013 NHL/NHLPA collective bargaining agreement. Basically, teams that operated under the rules of the 2005 CBA are punished in the new CBA for what was an otherwise legal activity — back-diving a contract.

Wild fans might one day become all too familiar with this. If Zach Parise and/or Ryan Suter retire before their contracts expire in 2025, the Wild is in trouble.

Let’s say one retired in 2020: The team would be charged a $3.938 million salary cap penalty in each of the next five seasons. Let’s say the other retired in 2021: The Wild would be charged a $5.038 million cap penalty in each of the next four seasons. It gets much higher in 2022-25.

There are several scenarios (even if traded) that force teams to pay back the cap advantage they received if a player with this type of contract retires prematurely (see www.capgeek.com). It affects about 20 players.

continued plus more hockey topics...

Filed in: NHL Teams, NHL Talk, | KK Hockey | Permalink
  Tags: bill+daly

Comments

Hootinani's avatar

Don’t worry, if their team owners toe the Bettman party line, he’ll just let the player go on ltir for the remainder of the contract, and then give them a completely inappropriate and conflicting job in the NHL head office.

Posted by Hootinani from the parade following Babs out of town on 11/16/14 at 12:22 PM ET

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About Kukla's Korner Hockey

Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

From breaking news to in-depth stories around the league, KK Hockey is updated with fresh stories all day long and will bring you the latest news as quickly as possible.

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