Phaneuf’s name had been circulating in buyout discussions for a while, so it’s hardly surprising that the Kings have elected to do so.
Phaneuf is a shade of the player he used to be and is on the back nine of his career. He’s got two years remaining on a deal and the Kings will save $2,833 million over the course of the buyout, including shedding over $4 million of cap space next year.
Phaneuf’s cap hit over four years will $8.375 million, with the Ottawa Senators retaining 25 percent or $2.791 million per the transaction the two teams made in 2018.
#LAKings have bought out the final 2 years of Dion Phaneuf's contract.
Today marks the opening of the buyout window where teams can shed bad contracts (for the most part) and save a little money when it comes to the salary cap. MacDonald’s name was written on the wall on Friday, however, after the Flyers and Washington Capitals swapped Radko Gudas for Matt Niskanen, a defenseman.
MacDonald had a year remaining on his six-year-, $30 million contract he signed prior to the 2014-15 season. The Flyers will save $3.833 million next year, reducing the cap hit from $5 million to just $1.66 million.
“It was a difficult decision,” Flyers GM Cliff Fletcher said. “It was solely cap related…This guys is a constant professional. He did whatever we asked him to do…He’s just a quality person & a guy who played an effective two-way game for our team.”
MacDonald’s play has tanked in recent times and his minutes followed. He had no goals and nine assists last year in 47 games where he averaged around 16 minutes a night, six less than when he was acquired by the Flyers in 2014 from the New York Islanders.
A team’s “out” to a bad contract, often one that said team signed and one they regretted at some point after the ink hit the signature spot on the contract sheet.
It’s an out with a catch. You can shed cap space, but only some. While mistakes can be forgiven, they’re not forgotten for some time. The length varies from case to case. It’s like getting a divorce but still living with your ex-spouse. You’re free, but not really. It’s not ideal.
The fact is, some relationships end up in that spot, and in hockey, when a usually-high-paid player becomes unwanted — a surplus to requirements — or he’s a square peg that can’t be fit into the round holes of a team’s salary cap, it’s one way to trim off some fat.
The buyout window opens today and will remain open until June 30.
Teams are permitted to buyout a players contract to obtain a reduced salary cap hit over a period of twice the remaining length of the contract. The buyout amount is a function of the players age at the time of the buyout, and are as follows:
One-third of the remaining contract value, if the player is younger than 26 at the time of the buyout
Two-thirds of the remaining contract value, if the player is 26 or older at the time of the buyout
The team still takes a cap hit, and the cap hit by year is calculated as follows:
Multiply the remaining salary (excluding signing bonuses) by the buyout amount (as determined by age) to obtain the total buyout cost
Spread the total buyout cost evenly over twice the remaining contract years
Determine the savings by subtracting the annual buyout cost from Step 2. by the players salary (excluding signing bonuses)
Determine the remaining cap hit by subtracting the savings from Step 3. by the players Annual Average Salary (AAV) (including signing bonuses)
With that out of the way, let’s look at five candidates (in no particular order) who may be bought out over the next two weeks.
The once powerful Kings have been reduced to kingdom more befitting of Jurassic Park. They have their share of stars from yesteryear on that team, and a couple making premium coin for regular, unleaded performance.
Phaneuf is a shade of the player he used to be. It’s understandable, given he’s 34 and on the back nine of his career. He’s got two years remaining on a deal that the Kings will be on the hook for $12 million.
Trading Phaneuf isn’t likely. He had six points in 67 games last year and the Kings, who were dreadful, healthy-scratched Phaneuf down the stretch.
Using CapFriendly’s handy-dandy buyout calculator, we see Phaneuf’s buyout would save the Kings just over $2.8 million, including a ~$4 million savings next year and a more modest $1.583 the following year.
Phaneuf’s cap hit over four years would be a total of $8.375 million, with the Ottawa Senators retaining 25 percent or $2.791 million per the transaction the two teams made in 2018.
Scott Darling, Carolina Hurricanes
A lesson in a team throwing way to much money at a backup goaltender with decent numbers.
Darling has fallen out of favor in Carolina after signing a four-year, $16.6 million deal during the 2017 offseason.
Darling’s play was a disaster in the first year of the deal and Petr Mrazek and Curtis McElhinney took over around December of this past season.
Darling was placed on waivers and was unsurprisingly not claimed and seems a shoe-in for an immediate buyout. The Hurricanes will save $2.366 million, taking a total cap hit of just under $6 million over the next four years.
Those savings can go to toward trying to re-up both Mrazek and McEhlinney, a duo that helped the Hurricanes to the Eastern Conference Final.
The Jets bet on Kulikov’s lingering back injuries being behind the Russian defenseman when they signed him two years ago in the offseason. The bet was wrong.
Kulikov’s back has a durability rating that would be frowned upon by Consumer Reports.
But his back isn’t the biggest issue Winnipeg has. General manager Kevin Cheveldayoff has a money issue. You see, he needs to spend a lot this offseason on guys named Patrik Laine and Kyle Connor, and he has more than one contract he’d like to dispose of. But while a guy like Mathieu Perreault would find suitors in the trade market, Kulikov won’t.
So while Kulikov has one year left on a deal that hits the cap for $4.333 million, a buyout would save Cheveldayoff close to $3 million in desperately needed cap space for the coming season.
Drafting well in the first round has caught up with the Jets.
Like Phaneuf not far down the I-5, Perry has seen his production nose-dive at 34 years old. There’s a lot of mileage on Perry’s skates, and regular oil changes aren’t cutting it anymore.
Perry has two years left on a deal that hits their bottom line for $8.625 million over the next two seasons.
The Ducks would have $6 million this year alone by buying out Perry, who is essentially trade proof with a full no-movement clause.
Perry’s cap hit would jump up to 6.625 mill the following year with a signing bonus of $3 million still owed, but then would only hurt for $2 million over the two added buyout years. In the end, the Ducks would save $4 million and open up a roster spot for a younger player.
I know what you’re thinking: “Hey, this guy just hoisted the Stanley Cup and played a hell of a role on the fourth line to help the Blues to their first title in franchise history.”
Indeed, Steen did all of those things. But interim coach Craig Berube put Steen on the fourth line, a role he relished in but one that can be replaced for much, much cheaper.
Steen, 35, has seen his production plummet over the past several seasons — far away from the realm of money he’s making with a $5.75 million cap hit. That’s too much for a fourth line player.
The Blues have some signings to make themselves, including a big-money extension for rookie sensation Jordan Binnington and other pieces to the puzzle such as Patrick Maroon.
Buying out Steen would come with a cap savings of $3 million, including a $6 million savings over the next two seasons. The Blues have $18 million and change to play with and a host of RFAs that need to get paid.
The above five came in no particular order. This list could extend for a while.
Some other notable names that could see their contracts bought out are:
Lebda was acquired from the Toronto Maple Leafs in a deal that saw Nashville send defenseman Cody Franson and concussed forward Matt Lombardi to Toronto in exchange for Lebda and Robert Slaney. The deal was a cost-cutting move for Nashville as they were unsure if Lombardi would be able to come back this season while he recovers from a concussion suffered early last season. As it turns out, he’s making progress and could very well play this seasons.
Lebda was due to make $1.45 million this year and compete for a spot in the top six of the Predators defensive unit but will instead be dead weight against their cap the next two seasons as two-thirds of his $1.45 million will be paid out over that time. After a miserable season in Toronto, Lebda proved to be one of Leafs GM Brian Burke’s more questionable signings, but that bad signing has instead turned into at least one quality defenseman in Franson and a potential top-six forward (when healthy) in Lombardi. It was a good deal alone with Franson but if Lombardi comes back to play, it’s a robbery by Burke on Predators GM David Poile.
Report: Predators put Brett Lebda on unconditional waivers; Buyout coming… Or not?
When the Predators swung a deal with the Maple Leafs that sent Cody Franson and Matt Lombardi to Toronto in exchange for Brett Lebda and Robert Slaney, the deal was already being hailed as a big winner for Toronto. For Leafs fans, getting rid of Lebda was a big enough win but getting the young Franson in return to play defense and to get Lombardi, who is recovering from a wicked concussion suffered last season and progressing well in doing so, it’s made the deal all the better for them.
For Nashville, Lebda was set to be a depth defenseman for them but now, it appears he’s about to be out of a job. Sportsnet’s Nick Kypreos reported that Lebda will be put on unconditional waivers by the Predators and will likely turn into a buyout candidate for the team. The question here for the Predators is whether they can buy out Lebda at all. Dirk Hoag at On The Forecheck digs into the NHL legalese to see if GM David Poile can help rid themselves of Lebda without breaking the rules of the NHL.
But what confuses me is how the Predators can actually buy him out, given Section 11.18 of the CBA (emphasis mine):
11.18 Ordinary Course Buy-Outs Outside the Regular Period. Clubs shall have the right to exercise Ordinary Course Buy-Outs outside the regular period for Ordinary Course Buy-Outs in accordance with Paragraph 13(c)(ii) of the SPC. Each Club shall be limited to no more than three (3) such buyouts over the term of this Agreement pursuant to Paragraph 13(c)(ii) of the SPC. However, in the event that a Club has only one salary arbitration hearing pursuant to Section 12.3(a) in a given League Year, such Club shall not be entitled to exercise such a buyout outside the regular period for Ordinary Course Buy-Outs. No Club shall exercise an Ordinary Course Buy-out outside the regular period for any Player earning less than $1 million.
The “regular period” referred to is the window from June 15 through June 30 when players (such as J.P. Dumont this year) can be bought out of their contract. Since the Preds only had one salary arbitration hearing that falls under Section 12.3(a) this summer (you may have heard of it recently), it would appear that they’re not allowed a buyout at this point in time.
Well this is a bit of a sticky issue if this is indeed in the plans of the Predators to ensure that Lebda is not on the team next season. With Lebda due $1.45 million next season, his buy out wouldn’t be an expensive one and would only hang on the Predators cap for this year and next at a cheap rate. if the Predators aren’t allowed to buy out Lebda, this is just a really awkward way of telling him that he’s not going to be playing in Nashville anyhow. That said, Buying out Lebda would also ensure that the Predators blue line corps is really, really young.
With Lebda out of the mix and Francis Bouillon still dealing with concussion problems of his own, the Predators will have to go with young star and 2009 first round pick Ryan Ellis as well as a mix of guys like Roman Josi, Teemu Laakso, Mattias Ekholm, and recently signed Tyler Sloan from Washington. Mixing those guys in with veterans like Ryan Suter, Shea Weber, Kevin Klein, and Jonathon Blum that would leave two starting spots to fight for with Lebda gone. The Predators are big on home grown players, but even going with a defensive unit like this would seem like a big risk.
Then again, if this is their plan, the best abilities of coach Barry Trotz will be pushed to the limit.