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
Jul 30, 2014, 1:28 PM EDT
Finnish club is moving to the KHL next season.
Jul 30, 2014, 12:17 PM EDT
Arbitration hearing is scheduled for Thursday.
Jul 30, 2014, 11:28 AM EDT
After not giving him a qualifying offer.
Jul 30, 2014, 11:12 AM EDT
That’s Lacroix, when he was an assistant for Tampa Bay.
Jul 30, 2014, 10:44 AM EDT
Jim Hiller and Andrew Brewer join Tony Granato, who’s also new.
Jul 30, 2014, 10:30 AM EDT
Jul 30, 2014, 10:10 AM EDT
Will this all get settled before Friday’s hearing?
Jul 30, 2014, 9:00 AM EDT
Tell us how you really feel, Brad.
Jul 30, 2014, 8:00 AM EDT
Kings captain meets Rangers fan. Hi-jinx ensue.
Jul 29, 2014, 10:02 PM EDT
From 64 (mercurial) to 10 (gritty!)
Jul 29, 2014, 9:02 PM EDT
Now battling Bon Jovi and Donald Trump!
Jul 29, 2014, 8:00 PM EDT
“This has been a difficult decision for Kevin.”
Jul 29, 2014, 7:01 PM EDT
After a year away from the game.
Jul 29, 2014, 6:04 PM EDT
Pretty nice pay bump for the 24-year-old rearguard.
Jul 29, 2014, 5:25 PM EDT
6-foot-8, 250-pounder was a first-round pick in 2005.
Jul 29, 2014, 4:26 PM EDT
Hall of Famer will work as an assistant under Ted Nolan.
Jul 29, 2014, 3:28 PM EDT
Fare thee well, Sammi.
Jul 29, 2014, 2:17 PM EDT
Low-risk signing, with good potential upside.
Jul 29, 2014, 1:33 PM EDT
“When you do have a little more responsibility, you want to take your lunch pail and get ready to work.”
Jul 29, 2014, 12:36 PM EDT
Had 13 goals and eight assists in 2013-14, his rookie season in the NHL.
- Subban seeking $8.5 million in arbitration, versus the Habs at $5.25 million 29
- Marchand on Plekanec: ‘I hate him. I can’t stand him’ 34
- Gettin’ paid: Gardiner inks five-year, $20.25M extension with Leafs 15
- Report: Trottier to join Sabres’ coaching staff 17
- Blues sign former eighth overall pick Mueller 31
- Trotz plans to let Johansson, Kuznetsov, and Burakovsky compete for time at center 43
- Eric Staal has surgery to repair ‘core muscle injury’ 6
- After not seeing ‘eye-to-eye’ with Carlyle, Reimer will compete for No. 1 gig 16
- Two down, one to go: Wings ink Tatar to three-year, $8.25M deal 12
- Cashing in: Rangers sign Brassard to five-year, $25 million deal 63
- Cashing in: Rangers sign Brassard to five-year, $25 million deal (63)
- Avs and O’Reilly agree on two-year deal, but questions remain (45)
- Trotz plans to let Johansson, Kuznetsov, and Burakovsky compete for time at center (43)
- New Caps regime plans to keep Ovechkin at RW (for now) (42)
- Rangers and Kreider avoid arbitration, agree on two-year deal (39)