Skip to content

Compliance buyout process begins Monday

Jun 15, 2014, 9:09 AM EDT

NEW YORK, NY - JUNE 11: Mike Richards #10 of the Los Angeles Kings and Brad Richards #19 of the New York Rangers battle for the puck during the second period of Game Four of the 2014 NHL Stanley Cup Final at Madison Square Garden on June 11, 2014 in New York, New York. Getty Images

The unrestricted free agent market won’t open until July 1, but some big names could be available sooner. That’s because the window for exercising teams’ remaining compliance buyouts will start Monday and run through June 30, per CSN Washington.

Compliance buyouts are a special option that teams were granted as part of the new CBA to help them cope with the fact that the new agreement was lowering the cap. Each franchise was allowed to buy out the contracts of up to two players over the summers of 2013 and 2014 without suffering any cap penalty.

That led to players like Vincent Lecavalier, Daniel Briere, and Mikhail Grabovski becoming free agents last summer. In total, 18 players were bought out, per Cap Geek.

For some teams, this summer’s compliance buyout window represents their last chance to safely get out of long-term contracts that could hurt them down the road, especially given the recapture penalty that punishes teams when players signed to long-term, heavily front-loaded deals retire with years remaining.

One prime example of that is New York Rangers forward Brad Richards, who is 34 years old and comes with a $6,666,667 annually cap hit through 2019-20. Los Angeles Kings forward Mike Richards might find himself in the same boat as his role has diminished despite the fact that he’ll cost $5.75 million annually against the cap through 2019-20.

Not all the compliance buyouts will be on big names though. It seems likely that Detroit will buy out the contract of Jordin Tootoo while San Jose’s Martin Havlat and Buffalo’s Ville Leino will also probably be wearing new uniforms in 2014-15.

It’s worth noting that while these buyouts don’t count against the cap, those players will still receive two-thirds of what was owed, with the payments spread out over double the remaining length of his contract. For example, the Flyers are also paying bought out goaltender Ilya Bryzgalov roughly $1.6 million annually through 2026-27 in addition to consistently spending to the cap.

So while compliance buyouts are a helpful tool for teams to utilize, they also require that owners make a financial sacrifice.

Latest Posts
  1. Video: Pens edge Sharks, reclaim second in Metropolitan

    Mar 30, 2015, 12:01 AM EDT

    Pittsburgh Penguins v San Jose Sharks Getty Images

    Perron and Crosby scored in the shootout for the win.

  2. Blackhawks’ Sharp: ‘We knew we had to get two points’

    Mar 29, 2015, 11:15 PM EDT

    Patrick Sharp #10 of the Chicago Blackhawks looks on in the first period of Game Three of the Western Conference Final against the Los Angeles Kings during the 2013 NHL Stanley Cup Playoffs at Staples Center on June 4, 2013 in Los Angeles, California.
(June 3, 2013 - Source: Harry How/Getty Images North America) Getty Images

    Chicago moves into third in the Central Division.

  3. Video: Brian Engblom takes a puck to the head

    Mar 29, 2015, 10:10 PM EDT

    Screen Shot 2015-03-29 at 9.34.27 PM

    He left the broadcast for stitches, but did return.

  4. Isles’ Tavares: ‘We needed two points, especially at home’

    Mar 29, 2015, 10:02 PM EDT

    John Tavares Getty Images

    New York snapped a seven-game home losing streak.

  5. Flames jump back into third in Pacific, beat Preds

    Mar 29, 2015, 7:55 PM EDT

    Michael Ferland Michael Ferland

    Michael Ferland’s first NHL goal was the winner.

  6. Ovechkin, Chimera help Caps add to wild card lead

    Mar 29, 2015, 6:05 PM EDT

    Alex Ovechkin AP

    Washington scored four unanswered to beat New York 5-2.

  7. Report: Doan won’t be punished for Letang hit

    Mar 29, 2015, 1:38 PM EDT

    Kris Letang

    The Penguins defenseman suffered a concussion.

  8. Panthers sign Bjugstad’s former roommate, Minnesota Gophers captain Kyle Rau

    Mar 29, 2015, 12:55 PM EDT

    Kyle Rau Getty Images

    Rau recorded at least 40 points in each of his NCAA campaigns.

  9. Letang concussed, Penguins will dress five defensemen

    Mar 29, 2015, 12:11 PM EDT

    Kris Letang, Steve Downie, Rob Scuderi AP

    The good news is that he’s out of the hospital.

  10. Patrick Roy remains upbeat about Sabres’ Grigorenko

    Mar 29, 2015, 10:42 AM EDT

    Gabrioel Landeskog, Ryan O'Reilly, Mikhail Grigorenko AP

    Roy coached the forward in the QMJHL.

Featured video

Hammond leads Ottawa's turnaround
Top 10 NHL Player Searches
  1. E. Malkin (2046)
  2. H. Lundqvist (1983)
  3. P. Datsyuk (1859)
  4. D. Dubnyk (1774)
  5. A. Hammond (1647)