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
Dec 21, 2014, 12:45 PM EST
The Penguins forward was penalized twice for embellishment on Saturday.
Dec 21, 2014, 12:00 PM EST
Torrey Mitchell and Tyson Strachan have been placed on IR
Dec 21, 2014, 11:15 AM EST
They’re not impressed with how Bylsma and his staff were treated.
Dec 21, 2014, 10:30 AM EST
He called it “no big deal”
Dec 21, 2014, 9:45 AM EST
Had just one goal in eight games prior to the injury.
Dec 21, 2014, 1:18 AM EST
Christopher Tanev scored the overtime winner on his birthday.
Dec 21, 2014, 12:33 AM EST
Vancouver reported its holding him out of the rest of the game for precautionary reasons.
Dec 20, 2014, 11:51 PM EST
Minnesota has won five of its last 13 games.
Dec 20, 2014, 11:20 PM EST
They had pulled their goaltender on a delayed penalty.
Dec 20, 2014, 11:05 PM EST
Stamkos hopes this loss will serve as a wake up call.
Dec 20, 2014, 10:43 PM EST
Ray Emery certainly got a lot of offensive help with Steve Mason out.
Dec 20, 2014, 10:17 PM EST
Montreal beat Ottawa 4-1.
Dec 20, 2014, 9:55 PM EST
It’s the third time this month New Jersey has been goalless.
Dec 20, 2014, 9:35 PM EST
Calvin Pickard had another great game.
Dec 20, 2014, 9:08 PM EST
It’s been a heated game between Pittsburgh and Florida.
Dec 20, 2014, 8:06 PM EST
It set a franchise record for both teams.
Dec 20, 2014, 7:20 PM EST
Carlyle’s been unhappy with his “very erratic” play.
Dec 20, 2014, 7:00 PM EST
They’ve combined for 13 points in the Kings’ last two games.
Dec 20, 2014, 6:11 PM EST
He might get that opportunity this weekend.
Dec 20, 2014, 5:24 PM EST
He might shatter some career-highs this season.
- Giroux line takes Leafs ‘to school’ in Flyers’ 7-4 victory 15
- Wolverine Pacioretty gets two assists just two days after being hospitalized 13
- Ovechkin scores beauty as Caps shutout Devils 6
- Seriously? Stress fracture sidelines Columbus’ Jenner for 1-2 months 6
- Julien chides Bruins’ offense for too many cute plays 40
- Sens roll over Ducks, who ‘weren’t ready’ 11
- Flyers’ Mason tweaked back, will miss weekend games 10
- Gordie Howe makes ‘amazing’ recovery following stem cell treatment in Mexico 15
- Video: Penguins’ spoof of ‘Christmas Vacation’ is pretty good 18
- Mason hurt, helped off ice at end of Flyers practice 8