Jan 8, 2013, 11:04 AM EDT
In case you missed it, the CBC’s Elliotte Friedman and ESPN’s Pierre LeBrun have provided details of what some people are calling the “Roberto Luongo rule” (and others are calling the “punish the teams that made Gary Bettman look bad by signing long, back-diving deals that circumvented the salary cap” rule.)
The new rule applies for any contract in excess of six years, including ones that were signed under the last CBA.
To wit: let’s say the Canucks trade Luongo soon. Luongo has played two years of his 12-year contract, the Canucks paying him $16.716 million in salary but only absorbing a $5.33 million cap hit each year. That’s a cap savings of $6.056 million over two years so far for Vancouver. Under this new rule, should the Canucks trade him now and he retires with three years left on his contract, Vancouver would be charged that $6.056 million in cap savings over the final three years left on his deal from 2019 to 2022. However, let’s say for argument’s sake Luongo gets traded to Toronto, the Maple Leafs also would be subject to cap penalties if Luongo retires before the end of his deal.
To wit, part 2: If Luongo were to play the next seven years of his deal in Toronto before retiring, the Leafs would be paying him $43.666 million in salary but only counting $37.31 million against the cap over those seven years, a cap savings of $6.356 million. So if Luongo retires with three years left on his deal (because his salary falls to $1.618 million in the 10th year and then $1 million in the last two years of the deal), the Leafs would get charged that $6.356 million on their cap spread evenly over the remaining three years of his deal.
Of course, this rule doesn’t just apply to players that are traded. If Luongo stays with the Canucks and retires three years early, they’d have to spread a $12.4 million cap hit over three years.
Now, one thing to keep in mind is that either the players or owners can opt out of the soon-to-be-ratified CBA after eight years, at which point Luongo would still have three years left on his contract and Bettman would likely no longer be commissioner. Translation: maybe they just scrap the rule as part of a new CBA and nobody gets punished.
Also, as Friedman points out…
…there may just be a loophole. From what I understand, Long-Term Injury Reserve still exists. (For example, it allows Chris Pronger to come off the Philadelphia cap while he recovers from concussions).
God forbid Luongo (or anyone else) goes through that. But he will be 40 in the summer of 2019. Who knows what happens to a goalie’s body by then? Maybe he’s had enough and is battling some nagging groin or hip or knee problem. He goes on LTIR, still gets paid and neither Toronto nor Vancouver gets any kind of penalty.
At any rate, neither team would have to pay a penalty until Luongo retires. And given the way some general managers have a habit of kicking the can down the road, we doubt this rule would be the only thing that stands in the way of a trade.
Plus, you never know – in 2020, $12 million might be the league minimum. (Or, if there’s hyperinflation, the price of a cup of coffee.)
Strombone (@strombone1) January 08, 2013
May 24, 2015, 12:52 AM EDT
Chicago wins another long overtime game.
May 24, 2015, 12:30 AM EDT
This series heads back to California, all even.
May 24, 2015, 12:08 AM EDT
Double overtime? Sure, why not?
May 23, 2015, 10:54 PM EDT
Chicago had the lead. Gave it up. Tied it up again.
May 23, 2015, 9:41 PM EDT
Trying to get under the opposition’s skin.
May 23, 2015, 9:18 PM EDT
Blackhawks and Ducks going at it.
May 23, 2015, 8:49 PM EDT
But emphasized the need to remain “professional.”
May 23, 2015, 8:04 PM EDT
The reaction to the big news continues to pour in.
May 23, 2015, 7:05 PM EDT
Anaheim can put Chicago on the brink of elimination.
May 23, 2015, 6:17 PM EDT
“I have a tremendous amount of respect for Claude.”
May 23, 2015, 5:30 PM EDT
He suffered an undisclosed injury in Game 3.
May 23, 2015, 4:44 PM EDT
Oilers’ prospects Leon Draisaitl and Marc-Olivier Roy were among those who received 10-minute misconducts on Friday night.
May 23, 2015, 3:43 PM EDT
His teammate Vladimir Sobotka is likely staying in Russia.
May 23, 2015, 2:45 PM EDT
The Bolts’ starter has allowed five goals in each of his last two starts.
May 23, 2015, 1:45 PM EDT
They’ll play alongside Patrick Sharp.
May 23, 2015, 12:45 PM EDT
He thought the commissioner was misquoted.
May 23, 2015, 11:45 AM EDT
A formal announcement could come as early as next week.
May 23, 2015, 10:40 AM EDT
He’ll serve as an assistant to GM Don Maloney.
May 23, 2015, 9:43 AM EDT
He would be eligible for this year’s draft, if he doesn’t come to terms by June 1.
May 23, 2015, 12:26 AM EDT
But will it last?
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- Video: Ducks score three goals in 37 seconds to take third-period lead 7
- WATCH LIVE: Ducks at Blackhawks, Western Conference Final Game 4 0
- Cooper on replacing Bishop: ‘That is asinine to me’ 17
- Vermette, Teravainen return for Blackhawks in Game 4 13
- Comeback fit for a King: Lundqvist, Rangers even series in Game 4 24
- Fetisov wants to restrict young Russians from playing in the NHL 51
- All eyes on Lundqvist 11
- Quenneville opted for ‘fresh legs’ by inserting Nordstrom, Versteeg into lineup 12
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- Leafs land Babcock with reported 8-year deal, estimated at $50 million (130)
- Russia to be punished for ‘completely out of order’ actions after Worlds final loss to Canada (91)
- Report: Sabres negotiating with Babcock (82)
- What’s wrong with Lundqvist? (70)