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
Aug 22, 2014, 11:00 PM EDT
The dynasty-era is well-represented in voting, as expected.
Aug 22, 2014, 10:00 PM EDT
The slogan is “Tradition on Ice.”
Aug 22, 2014, 8:30 PM EDT
Not exactly blasting his former employers.
Aug 22, 2014, 7:14 PM EDT
The TMNT pajamas really put it over the top.
Aug 22, 2014, 5:44 PM EDT
“We’re waiting for somebody now to step forward and take charge of this team.”
Aug 22, 2014, 4:22 PM EDT
Despite missing 11 games, he set many career-high numbers.
Aug 22, 2014, 3:01 PM EDT
Spent the summer relocating his family to the Manitoba capital.
Aug 22, 2014, 2:05 PM EDT
Speculation on MLSE President & CEO’s next move.
Aug 22, 2014, 1:32 PM EDT
Disappointed with demotion last season, 20-year-old will get another shot in September.
Aug 22, 2014, 12:14 PM EDT
Has to get his team on the winning track.
Aug 22, 2014, 11:15 AM EDT
Helps friend raise awareness at charity event.
Aug 22, 2014, 10:30 AM EDT
Excess of defensemen has GM Peter Chiarelli in a bind.
Aug 22, 2014, 10:05 AM EDT
At 23 years old, he’s one of the best players in the NHL.
Aug 22, 2014, 9:00 AM EDT
He’s the last free agent for the Avs to re-sign.
Aug 22, 2014, 8:00 AM EDT
They came back to the pack hard last season.
Aug 21, 2014, 11:00 PM EDT
He’ll have a battle to make the NHL next season.
Aug 21, 2014, 10:00 PM EDT
He died in the plane crash that killed the Lokomotiv Yaroslavl team in 2011.
Aug 21, 2014, 9:00 PM EDT
The NHL changed the process for the Draft Lottery on Wednesday.
Aug 21, 2014, 7:33 PM EDT
We know it’s not surprising, but just go along with it.
Aug 21, 2014, 6:24 PM EDT
A Stanley Cup and a Conn Smythe in separate years is a nice legacy.
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