Tag: contract buyout

Scott Gomez

Report: Canadiens will buy out Scott Gomez’s contract


One potential issue for new Canadiens GM Marc Bergevin will be what to do with Scott Gomez.

The 32-year-old forward has two years remaining on his contract and a massive cap hit ($7.3 million) without the production to match it. Louis Jean of Sportsnet hears from a source, Dave Morrisette of Le Match in Quebec, that Montreal’s plan for Gomez will be to buy him out of his deal this summer.

Gomez’s buy out price will be stiff. Under the current CBA, buying out a veteran player means taking two-thirds of their cap hit and paying it out over twice the length of the remaining years on the deal. What might be worse than paying Gomez to play poorly for you for the next two seasons? Having a gnarly cap hit for the next four years while he plays for someone else.

According to CapGeek.com, buying out Gomez means having a cap hit of just over $3.5 million on the books this season followed by a hit of over $4 million next season with two more seasons at $1.67 million just going to waste.

Those are some ugly numbers but with a new CBA on the way, you wonder if Montreal will hold off on buying out Gomez right away because the rules will be different. There’s the chance there will be amnesty buyouts (meaning no cap hit punishment) as well as the possibility that burying contracts in the AHL won’t be allowed anymore. I hope no one told Bergevin the job would be easy.

As Rangers second buyout window approaches, Wojtek Wolski watch begins

Wojtek Wolski

When the Rangers got the deal done with Ryan Callahan this afternoon for three years and nearly $13 million, they were able to get their forward lines all squared away and under contract. With Callahan also being their last restricted free agent to be signed, it also means that their second buyout period is set to begin at midnight.

With the Rangers being at just over $700,000 under the salary cap, the Rangers might be seeking out a little extra room under the cap. With the Rangers having a few extra forwards under contract and only 12 spots for starters, there are a few guys that could be getting a long look in regard to their salary cap hits. The main guy that could find himself on the chopping block is Wojtek Wolski.

With Wolski coming with a $3.8 million cap hit this season, buying him out would give the Rangers a nice cushion of cap space. As Andrew Gross from Rangers Rants tells us, however, don’t expect the Rangers to be too busy over the next 48 hours during their final shot at buyouts.

But not only is there no buyout of Wolski coming over the next couple of days, it’s almost a near certainty he will not be traded between now and the start of training.

The trick may come if the Rangers want to start the season with both Tim Erixon ($1.75 million) and Michael Del Zotto ($1.09 million) on their roster. They have approximately $700,000 left in cap space including Erixon as one of the six defensemen on the roster but not including Del Zotto. However, it also includes center Erik Christensen ($925,000) who may find himself squeezed from a roster spot now that the team has signed Brad Richards. The Rangers currently have 14 forwards, including Mats Zuccarello ($1.75 million) and could opt to carry just 13.

It’s a curious plan for the Rangers, but dancing near the cap is nothing new for competing teams. We saw the Devils handle things rather poorly last season while trying to balance how to handle having Ilya Kovalchuk’s deal as well as other bloated contracts on the roster to go with it. The Rangers do have enough flexibility with their contracts that they can get away with some lineup juggling if need be, but if minor injuries pile up and players can’t be placed on long term injured reserve, trouble managing the cap could arise.

The Rangers are better off having that offensive depth and while the addition of Brad Richards will help perk up their offense, they’ll need more goals from all their lines to win. Keeping Wolski as well as Erik Christensen and others who could be cap casualties is key for New York since they don’t have the minor league depth to help support them offensively if things go wrong. Losing Wolski could help the Rangers financially, but he’ll be able to give some help scoring and who knows… Perhaps playing in the final year of his contract will help motivate him to play focused regularly.

Predators add J.P. Dumont to the buyout bin

Predators Ducks Hockey

The bone-dry ranks of unrestricted free agent defensemen received an interesting boost once it became clear that Sheldon Souray’s flamethrower slap shot, Mike Commodore’s ruggedness/red afro and Cam Barker’s untapped potential will be added to the mix.

After possibly adding a big chunk of unrestricted free agents to the market on accident thanks to their Dale Tallon-esque qualifying offer issues, the Nashville Predators actually intentionally added one of their players to the unrestricted free agent ranks today. The Predators bought out forward J.P. Dumont, breaking down the $4 million salary from the last year of his contract into a $1.3 million cap hit in both 2011-12 and 12-13.

Dumont could be an interesting gamble for another NHL team (wait for it …) if the price is right. His hot-and-cold game went frigid in 2010-11 as he only scored 19 points in 70 games while averaging a bit more than 11 minutes per night. After peaking in Nashville in 06-07 (66 points), 07-08 (a career-high 72) and 08-09 (65 points), Dumont’s game kept dropping the last two seasons. He went from 45 points in 09-10 to that abysmal 19-point showing in 10-11.

Still, some teams might look at that not-too-long-ago run and wonder if he might be productive on a more offense-first squad. Much like Souray, Dumont doesn’t work at his inflated salary but he might be considered an interesting piece if he keeps his economic goals reasonable. He’s probably a more enticing buyout-turned-free-agent than banged up center Chris Drury, if nothing else.

It’s an understandable move by the Predators, but times could be really tough if the NHLPA’s grievance ends up giving them some serious free agent headaches. Stay tuned for the resolution to that and many other issues during this off-season.

Report: Rangers plans to buy out Chris Drury foiled thanks to degenerative knee injury

Chris Drury

Rangers general manager Glen Sather’s plans of trying to help the Rangers reduce their salary cap commitments for next season might end up going about as well as the Rangers playoff run against Washington did.

Last week, a report came out saying that the Rangers would be buying out team captain Chris Drury from the final year of his contract, thus knocking down his $7 million cap hit for 2011-2012 and opening up space to pursue more helpful players for the Rangers purposes, namely Brad Richards.

Today, the New York Post’s Larry Brooks finds out that the Rangers best laid plans may not come to fruition as they will not be able to buy Drury out thanks to an injury.

It appears as if the Rangers will be unable to buy out the final season of Chris Drury’s contract because of a degenerative condition in the captain’s left knee that apparently will render him medically unable to play next season, The Post has learned.

While Drury has yet to file the necessary paperwork, sources report he plans to do so. The Rangers, who had been planning a buyout, could file a grievance against Drury, but that is a remote possibility, at best.

Mounting a challenge is problematic on numerous levels, but winning a grievance would cost CEO Jim Dolan approximately $2.7 million in cash, given insurance ramifications.

A degenerative condition like that is terrible news for Drury who would’ve been trying to catch on with another team once he was bought out. With this kind of injury it would likely spell the end of his career. Of course, the major issue here for the Rangers is how they’ll adapt things to the salary cap. Since they won’t be able to buy out Drury, they’ll need to put him on long term injured reserve. There is another thing that can be done under the Collective Bargaining Agreement, however, but it makes life just as tricky for the Rangers. Brooks highlights the Rangers other option.

Under terms of the CBA, the captain will have to report to training camp in September for the team physical. If Drury fails, as would be expected, he would qualify for a long-term injury (LTI) exemption when the season begins and the roster is set.

But in order to gain the full value of the $7.05 million exemption, the Rangers would have to go that far over the cap. In other words, if the cap is $62.5 million (an estimation before it is officially established by June 30), the team would have to get to $69.5 million (including Drury) before the season-opener in Stockholm to reap the full LTI benefit.

Not that the Rangers haven’t ever been spendthrifts in the past but being forced to spend $7.05 million would certainly set the bar for where they’d need to go to get Richards. Whether or not the Rangers had that kind of financial commitment in mind for the 31 year-old center remains to be seen, but that kind of money could make it easier for the Rangers to make this bump in the road easier to navigate. While it would’ve been easier for the Rangers to buy out Drury and eat the $3+ million in dead cap space courtesy of doing that, the Rangers plans to pursue Richards could make it easier to handle.

Of course, if the Rangers don’t land Richards, their offseason plans get a lot more perilous and much more gloomy with Drury still affecting their plans thanks to his massive cap hit. Either way, Rangers GM Glen Sather has a few things to get figured out and wooing Brad Richards becomes even more of a priority than it was before.

Report: Rangers to buy out Chris Drury; Freeing up space to make run at Brad Richards?

Chris Drury

Things haven’t exactly been joyful for Rangers captain Chris Drury the last few seasons in New York. He’s struggled with injuries, he’s struggled with producing on the ice, and he’s had Rangers fans hoping to see the captain’s “C” moved to other players on the team (namely Ryan Callahan). After a miserable 2010-2011 season that saw Drury finish the year with just one goal after dealing with a myriad of injuries, it appears his run in New York is at an end.

Larry Brooks of the New York Post reports that Rangers GM Glen Sather will be buying Drury out of the final year of his contract while retaining two other high priced forwards who have had their ups and downs in New York.

The Post has also learned that the team will not buy out either Wojtek Wolski or Sean Avery, each of whom ended the season with tenuous futures on Broadway.

The Drury buyout, which will become official during the proscribed June 15-30 window for such transactions, will open $3,333,333 of 2011-12 cap space while costing the team $1,666,667 in dead space the following season under the rules of the current collective bargaining agreement.

If eating a $3.33 million cap hit for a year sounds like a bad idea, consider that if the Rangers kept Drury on the roster this year he’d eat up $7.05 million against the cap or end up thoroughly disrespected as a captain and stuffed in the AHL to hide his contract. At least being bought out means he can see if he can play somewhere else in the NHL.

The other side of cutting Drury loose is the salary relief it provides the Rangers in their potential and likely pursuit of Brad Richards when he becomes an unrestricted free agent on July 1. Richards is set to become the most pursued free agent of the summer and the former Conn Smythe Trophy award winner and playmaking phenom is a guy the Rangers have lusted after since before the trade deadline this season. With his former Lightning head coach John Tortorella in charge with the Rangers, it’s a pairing that makes sense and for the Rangers Richards would be the setup man they’ve lacked for years in Manhattan.

For now, Drury’s departure from New York ends an era that saw Drury come in with big expectations after putting up huge seasons with Daniel Briere in Buffalo only to fall severely short of huge expectations on Broadway. While Drury wasn’t necessarily a bad player, the great success he had with the Sabres set the bar that much higher for him coming to New York.

His first season with the Rangers was his best putting up 25 goals and 33 assists. Paying over $7 million a year for a guy who only twice scored more than 50 points in his four seasons in New York wasn’t cutting it. Drury is a much loved player for what he’s done, but his final two seasons in New York saw him play 101 games while scoring 15 goals and adding 22 assists.

Should the Rangers add Richards, keep this in mind: Drury was 31 years old when they signed him and his production evaporated after two seasons. Brad Richards turned 31 in May and is coming off of a season that saw him suffer a concussion that limited his play and saw him unable to help the Dallas Stars make the playoffs. If the Rangers do plan on breaking the bank for Richards, they should be at least be wise about what could happen out of the blue.