Jan 8, 2013, 11:04 AM EST
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
Feb 27, 2015, 5:25 PM EST
Was aiming to play Saturday versus the Rangers.
Feb 27, 2015, 4:34 PM EST
GM Doug Wilson has some decisions to make…
Feb 27, 2015, 3:17 PM EST
So says NHL deputy commissioner Bill Daly.
Feb 27, 2015, 3:04 PM EST
Some recommended reading to pass along.
Feb 27, 2015, 2:20 PM EST
Incident occurred during last night’s San Jose-Detroit game.
Feb 27, 2015, 1:53 PM EST
Were dominated by the Red Wings for the final two periods of last night’s loss.
Feb 27, 2015, 1:46 PM EST
News and notes from around the blue paint…
Feb 27, 2015, 1:35 PM EST
Could it keep him from getting moved by Monday?
Feb 27, 2015, 12:48 PM EST
“If we can’t get up emotionally for that game, then I think we have to take a deeper look at ourselves.”
Feb 27, 2015, 12:13 PM EST
Has appeared in 12 games for Minnesota this season.
Feb 27, 2015, 11:50 AM EST
Didn’t get the power-play time in Toronto.
Feb 27, 2015, 11:39 AM EST
“He actually said, ‘Can you believe I’m calling you on this guy?’ And I said, ‘No, I can’t. But let’s talk.”
Feb 27, 2015, 11:13 AM EST
Norris candidate will sit after getting injured during Wednesday’s win over New Jersey; Tyler Wotherspoon has been recalled from AHL Adirondack.
Feb 27, 2015, 10:56 AM EST
Starting tonight in New Jersey.
Feb 27, 2015, 10:54 AM EST
Announced his retirement on Friday.
Feb 27, 2015, 9:53 AM EST
He endured a rough stretch, but has bounced back recently.
Feb 27, 2015, 8:57 AM EST
He’ll bring experience, but at 43 years old can he also give Florida a boost offensively?
Feb 27, 2015, 8:02 AM EST
Friday’s collection of links.
Feb 27, 2015, 1:16 AM EST
His shutout streak is now at 172:22.
Feb 26, 2015, 11:31 PM EST
Nino Niederreiter combined skill and good fortune to help his team win.
- Video: Couture fined $5K for slew-footing Smith 19
- Time to start winning — Bruins’ next four games are against non-playoff teams 17
- Burgled: Sens’ Hammond shuts out Kings 14
- Wild get important win vs. Preds (and some luck, too) 41
- Trading baggage: Blue Jackets grab Clarkson, send Horton’s contract to Leafs 66
- Panthers acquire Jagr from Devils 29
- Trotz doesn’t see a ‘big, sexy, difference-maker guy’ on the market 17
- What’s up with the reports of problems in the Blackhawks’ room? 40
- Petrovic: Chicago will ‘probably seek revenge’ for Kane injury tonight 82
- Lombardi happy to get ‘one of the better defenseman on the market’ in Sekera 3
- Leafs’ Rielly apologizes for insensitive remarks (86)
- Petrovic: Chicago will ‘probably seek revenge’ for Kane injury tonight (82)
- Chiarelli understands scrutiny on GM and coach, but says, ‘It’s unfortunate that we’re under review for one year’ (69)
- ‘I don’t know why we’re so comfortable,’ says Toews after loss to Avalanche (69)
- Report: Alex Petrovic avoids discipline after injuring Patrick Kane (67)