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beliveau1

Contract Buy Outs & the Cap?

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Avs Buying Out Theodore?

Just wondering how the buy out aspect affects salary cap hits? Can anyone explain.....

Edited by beliveau1

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A minus to Jose Theodore, who has just about hit rock bottom in Denver. The Avs have been so upset with the way he's played, Theodore has only started two games since Christmas and there are reports the Avs may now just buy him out at the end of the season.

HAHAHAHA

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Not sure exactly...but I think the team is still on the hook for 2/3 of his salary for the remainder of his contract. The 2/3 salary would count against the cap; but they save 1/3 of his current cap hit.

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Example Theo cap hit 5.333

If they buy him out this summer his cap hit is spread over 2 years since he has one left on his deal.

So they pay him 2/3rds of his 6mil owed.

And for the 07/08 season cap hit 2.665

08/09 season cap hit 2.665

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Example Theo cap hit 5.333

If they buy him out this summer his cap hit is spread over 2 years since he has one left on his deal.

So they pay him 2/3rds of his 6mil owed.

And for the 07/08 season cap hit 2.665

08/09 season cap hit 2.665

thanks

I knew there was a formula that was applied to the cap, but wasn't sure of the exact details.

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I wonder if Montreal will do that with Samsonov and some other players?

GO :hlogo: GO!

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I wonder if Montreal will do that with Samsonov and some other players?

GO :hlogo: GO!

kovalev if gainey has any balls.

samsonov will be on fire next year, fighting for a new contract while kovalev will keep on cruising around.

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anyone think theo will regain his form in about 2 years after just relaxing and having no pressure put on him?

I do, i think he will be back as a good golie once he regains his confidence. i remember feeling very confident when he was on his game, more confident than when huet is on his game

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Example Theo cap hit 5.333

If they buy him out this summer his cap hit is spread over 2 years since he has one left on his deal.

So they pay him 2/3rds of his 6mil owed.

And for the 07/08 season cap hit 2.665

08/09 season cap hit 2.665

Me thinks your numbers are off. 2/3 of 5.33 is less that 4 million. Actually, it is 3.52 mill. So I guess they would be on the hook for 1.76 mill per season over the next two seasons .... good work if you can get it.

Theo, what a chump. I'm sure he is laughing though ... he made his money and he obviously doesn't care ... no heart. Just pride!

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Example Theo cap hit 5.333

If they buy him out this summer his cap hit is spread over 2 years since he has one left on his deal.

So they pay him 2/3rds of his 6mil owed.

And for the 07/08 season cap hit 2.665

08/09 season cap hit 2.665

If he's got one year left on his deal, why is the buyout spread over two? You don't have to include option years in buyouts.

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It is split over two years to reduce the impact on the team's cap. Consider it a courtesy from the league to the teams.

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anyone think theo will regain his form in about 2 years after just relaxing and having no pressure put on him?

Nope. I think he's another Jim Carrey who just happened to last a little longer.

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kovalev if gainey has any balls.

samsonov will be on fire next year, fighting for a new contract while kovalev will keep on cruising around.

I don't think Gainey will buy him out. Gainey likes him a lot and believe it or not most of his teammates respect him and what he can do, whether he actually is doing it or not.

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Me thinks your numbers are off. 2/3 of 5.33 is less that 4 million. Actually, it is 3.52 mill. So I guess they would be on the hook for 1.76 mill per season over the next two seasons .... good work if you can get it.

Theo, what a chump. I'm sure he is laughing though ... he made his money and he obviously doesn't care ... no heart. Just pride!

No the 2/3rds is what the team has to PAY THEODRE.

While the cap hit is just speread double over the years.

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No the 2/3rds is what the team has to PAY THEODRE.

While the cap hit is just speread double over the years.

Bacchus is absolutely right, so far as my research suggests. 1 year left on his deal, with a $5.3 mil cap hit. I haven't heard anything about extending the cap hit out over years for which there is no contractual agreement. The way I've heard it is that the payment amount can be spread over twice the number of years being bought out. (Thus, the avalanche aren't just buying him out now.)

5,300,000*2/3 = $3,533,333.33 (Total buyout amount)

$3,533,333.33/2 = $1,766,666.67 (Payment per season for two seasons.)

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