Kukla's Korner Hockey
Teams Will Have Issues With The Cap Recapture
by Paul on 11/16/14 at 09:16 AM ET
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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
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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.
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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 11:22 AM ET