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Trade Retention is cheaper than buyouts (Discussion)


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Give the presser another listen.  If deals aren't possible, then they're looking at buyouts.

 

And all this says to me is that they need some cap space so that they can start moving forward with the team.  Rutherford isn't going to accept another offseason with very little progress.

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I personally would go with trades with retention.  For example OEL.  You buy him out, you have a cap hit for over 8 years.  You retain half, you might get something, and you only have him on the books for 4.  Myers, retain half at 3 million, you only have him on the cap for next season.  buy him out, you have him for 2 seasons...  WHY!!??  We can retain on 3 contracts.  Do it, and the fan base will understand.

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I agree that retention on deals may make more sense than a buyout, but it seems like many teams are unwilling to take on any salary at all right now.  Maybe some of that changes over the summer when contracts expire at the opening of free agency, but that assumes that teams are interested in the Canucks' players.

 

Personally, if it means improving the Canucks' return, then retaining 50% of Horvat's cap hit this season makes sense to me.  Obviously he's not a buyout candidate, but retention has to be part of the toolbox for deals right now.  It doesn't hurt the Canucks beyond this season.

 

I think Myers may be tradeable with retention after 1 July next year so if they buy him out, then that will be truly puzzling. It's barely any cap savings next season and there's a small cap penalty the following year that wouldn't be there if they just rode out his contract.  Even retaining 50% of Myers' salary saves the Canucks $3M.  Myers at $3M AAV may be enticing for some teams.

 

Pearson would have been another player that I could have seen being of interest to another team if cap was retained, but with his health situation, who knows if he'll even be able to play (my understanding is he can't be bought out while injured). At this point, it may be better for the Canucks to be able to place Pearson on LTIR. 

 

Buying out Boeser saves the Canucks a fair bit of cap but carries such a long cap hit that it's crazy. Retaining for 2 more years on him may not be great, but might be preferable to a buyout.

 

Garland is the player that looks to have the biggest bullseye as a potential buyout candidate.  There are noteworthy cap savings for the next two years and the cap hit from 2025 to 2029 is bad but not terrible.  Still, it seems like a terrible use of cap space.

 

Miller and OEL buyouts are hard to fathom. Terribly punitive (not to mention totally bizarre for Miller since they just re-signed him). They would be akin to the Parise and Suter buyouts Guerin went ahead with for the Wild which are taking up a huge amount of cap space for 2 more years before dropping to more acceptable levels.

 

Personally, I feel like we're almost back to a LE, Beagle, and Roussel situation again. Putting aside issues of roster construction for next season, the Canucks might need one more year of pain to free themselves of at least the Myers and Pearson contracts (if they cannot otherwise move them). Be disciplined with cap allocations next year (not going to hold my breath for this though). Hopefully the cap goes up a larger amount in 2024-2025 which will create more cap space to re-sign EP (if he wants to stay).

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53 minutes ago, J.I.A.H.N said:

Ok, Lets go with what Rutherford said at his presser...........No Rebuild.......trade for youngish reclamation projects............summertime buys outs

 

So this gives us to some hint to what Rutherford is going to do, in the summer. This does not say what he will do at the TDL. The summer is too late to sign Bo Horvat, unless there is a gentleman's agreement is in place, that is "IF" Rutherford ups his offer, and "IF" Horvat really wants to be here.

 

So, despite, any buys outs, IMO, Bo Horvat is gone, which frees up $5,500,000 in today's dollars for next year. This basically transfers directly to Kuzmenko, so there is no net savings, just a saving of a good young player.

 

But back to Horvat for a second. Last year it was suggested Miller was going to the Rangers for Chytl, 2023-1st and Lundqvist.  So expect a similar deal to that, but think RHD man. Something like Peeke, or Boqvist + Sillinger (No waiting time! Low cap hits). But I do not see a big hit, and IMO, does not fix our problems.

 

So what of the buyouts? Well below are charts of our most popular talked about buy outs. Their cost and their average Cap hit, over the length of their buyout. (I did it this way for simplicity, and to illustrate the cost to the franchise. It also illustrates the basic break even, of what we can retain in a trade, and still break even.

 

Miller's new contract  $8,000,000 -$2,750,000 X14 years Buyout     or     $8,000,000 - $2,750,000 = $5,250,000 X 7 years Retention

OEL...........................$7,250,000 -$2,500,000 X  8 years Buyout     or     $7,250,000 - $2,500,000 = $4,750,000 X 4 years Retention  

Boeser.......................$6,650,000 -$2,200,000 X  4 years Buyout     or     $6,650,000 - $2,200,000 = $4,450,000 X 2 years Retention

Myer's........................$6,000,000 -$2,800,000 X 2 years Buyout     or     Pays the Bonus and trades for?             X 1 year  Retention  

Garland.....................$4,950,000 -$1,500,000  X 6 years Buyout     or     $4,950,000 - $1,500,000 = $3,450,000  X 1 year  Retention

Pearson.....................$3,250,000 -$1,200,000 X 2 years Buyout     or     $3,250,000 - $1,050,000  = $2,200,000 X 1 year  In the minors

 

So, yes, this is a mess of a Post, but it illustrates, variables, and questions I have about Rutherfords "BUYOUTS" this summer? So which is better, actual buyouts, or trades with retention?

 

The "AVERAGE BUYOUT CAP HIT, IS JUST A WAY TO ILLUSTRATE THE COST TO MANAGEMENT AND HOW IT IMAPCTS THE CAP CEILING........................................NOT ACCURATE FOR ACTUAL YEAR TO YEAR.

 

Miller : Cap Hit Calculations :                        Average Buyout Cap Hit over 14 years : $2,750,000 per year to Qualini

SEASON INITIAL BASE SALARY INITIAL CAP HIT SIGNING BONUS BUYOUT COST POST-BUYOUT EARNINGS SAVINGS CAP HIT (VAN)
2023-24 $1,000,000 $8,000,000 $8,500,000 $1,523,810 $10,023,810 -$523,810 $8,523,810
2024-25 $4,000,000 $8,000,000 $5,000,000 $1,523,810 $6,523,810 $2,476,190 $5,523,810
2025-26 $4,000,000 $8,000,000 $5,000,000 $1,523,810 $6,523,810 $2,476,190 $5,523,810
2026-27 $7,000,000 $8,000,000 $0 $1,523,810 $1,523,810 $5,476,190 $2,523,810
2027-28 $4,500,000 $8,000,000 $3,000,000 $1,523,810 $4,523,810 $2,976,190 $5,023,810
2028-29 $4,500,000 $8,000,000 $2,500,000 $1,523,810 $4,023,810 $2,976,190 $5,023,810
2029-30 $7,000,000 $8,000,000 $0 $1,523,810 $1,523,810 $5,476,190 $2,523,810
2030-31 $0 $0 $0 $1,523,810 $1,523,810 -$1,523,810 $1,523,810
2031-32 $0 $0 $0 $1,523,810 $1,523,810 -$1,523,810 $1,523,810
2032-33 $0 $0 $0 $1,523,810 $1,523,810 -$1,523,810 $1,523,810
2033-34 $0 $0 $0 $1,523,810 $1,523,810 -$1,523,810 $1,523,810
2034-35 $0 $0 $0 $1,523,810 $1,523,810 -$1,523,810 $1,523,810
2035-36 $0 $0 $0 $1,523,810 $1,523,810 -$1,523,810 $1,523,810
2036-37 $0 $0 $0 $1,523,810 $1,523,810 -$1,523,810 $1,523,810
TOTAL $32,000,000 $56,000,000 $24,000,000 $21,333,333 $45,333,333 $10,666,667 $45,333,340

 

 

OEL : Cap Hit Calculations :                          Average Buyout Cap Hit over 8 years : $2,500,000 per year to Aqualini

SEASON INITIAL BASE SALARY INITIAL CAP HIT SIGNING BONUS BUYOUT COST POST-BUYOUT EARNINGS SAVINGS CAP HIT (VAN)  
2023-24 $10,500,000 $8,250,000 $0 $2,416,667 $2,416,667 $8,083,333 $146,667  
2024-25 $8,000,000 $8,250,000 $0 $2,416,667 $2,416,667 $5,583,333 $2,346,667  
2025-26 $5,250,000 $8,250,000 $0 $2,416,667 $2,416,667 $2,833,333 $4,766,667  
2026-27 $5,250,000 $8,250,000 $0 $2,416,667 $2,416,667 $2,833,333 $4,766,667  
2027-28 $0 $0 $0 $2,416,667 $2,416,667 -$2,416,667 $2,126,667  
2028-29 $0 $0 $0 $2,416,667 $2,416,667 -$2,416,667 $2,126,667  
2029-30 $0 $0 $0 $2,416,667 $2,416,667 -$2,416,667 $2,126,667  
2030-31 $0 $0 $0 $2,416,667 $2,416,667 -$2,416,667 $2,126,667  
TOTAL $29,000,000 $33,000,000 $0 $19,333,333 $19,333,333 $9,666,667 $20,533,336 (88%)  

 

Boeser : Cap hit Calculations :                      Average Buyout Cap Hit over 4 years : $2,200,000 per year to Aqualini

SEASON INITIAL BASE SALARY INITIAL CAP HIT SIGNING BONUS BUYOUT COST POST-BUYOUT EARNINGS SAVINGS CAP HIT (VAN)
2023-24 $6,650,000 $6,650,000 $0 $2,216,667 $2,216,667 $4,433,333 $2,216,667
2024-25 $6,650,000 $6,650,000 $0 $2,216,667 $2,216,667 $4,433,333 $2,216,667
2025-26 $0 $0 $0 $2,216,667 $2,216,667 -$2,216,667 $2,216,667
2026-27 $0 $0 $0 $2,216,667 $2,216,667 -$2,216,667 $2,216,667
TOTAL $13,300,000 $13,300,000 $0 $8,866,667 $8,866,667 $4,433,333 $8,866,668

 

Garland Cap Hit Calculations :                    Average Buyout Cap Hit over 6 years : $1,500,000 per year to Aqualini

SEASON INITIAL BASE SALARY INITIAL CAP HIT SIGNING BONUS BUYOUT COST POST-BUYOUT EARNINGS SAVINGS CAP HIT (VAN)
2023-24 $6,000,000 $4,950,000 $0 $1,888,889 $1,888,889 $4,111,111 $838,889
2024-25 $6,000,000 $4,950,000 $0 $1,888,889 $1,888,889 $4,111,111 $838,889
2025-26 $5,000,000 $4,950,000 $0 $1,888,889 $1,888,889 $3,111,111 $1,838,889
2026-27 $0 $0 $0 $1,888,889 $1,888,889 -$1,888,889 $1,888,889
2027-28 $0 $0 $0 $1,888,889 $1,888,889 -$1,888,889 $1,888,889
2028-29 $0 $0 $0 $1,888,889 $1,888,889 -$1,888,889 $1,888,889
TOTAL $17,000,000 $14,850,000 $0 $11,333,333 $11,333,333 $5,666,667 $9,183,334

 

Myers Cap Hit Calculations :                       Average Buyout Cap Hit over 2 years : $2,800,000 per year to Aqualini

SEASON INITIAL BASE SALARY INITIAL CAP HIT SIGNING BONUS BUYOUT COST POST-BUYOUT EARNINGS SAVINGS CAP HIT (VAN)
2023-24 $1,000,000 $6,000,000 $5,000,000 $333,334 $5,333,334 $666,666 $5,333,334
2024-25 $0 $0 $0 $333,334 $333,334 -$333,334 $333,334
TOTAL $1,000,000 $6,000,000 $5,000,000 $666,667 $5,666,667 $333,333 $5,666,668

 

Pearson : Cap Hit Calculations :                   Average Buyout Cap Hit over 2 years : $1,200,000 per year to Aqualini

SEASON INITIAL BASE SALARY INITIAL CAP HIT SIGNING BONUS BUYOUT COST POST-BUYOUT EARNINGS SAVINGS CAP HIT (VAN)
2023-24 $2,750,000 $3,250,000 $1,500,000 $916,667 $2,416,667 $1,833,333 $1,416,667
2024-25 $0 $0 $0 $916,667 $916,667 -$916,667 $916,667
TOTAL $2,750,000 $3,250,000 $1,500,000 $1,833,333 $3,333,333 $916,667 $2,333,334

100% correct. Trades with retention are far better than buyouts, b/c its possible to turn dead weight contracts into assets of value that can give us a return.

 

 

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1 minute ago, DrJockitch said:

If there was a market for OEL at $5M he would probably be gone. Buyouts don’t need suckers, I mean partners. 

OEL has trade protection too, beyond his unreadable contract.  Only way to move on from OEL is a buyout.  And IMHAO our owner won’t cut that cheque. 

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4 minutes ago, Alflives said:

OEL has trade protection too, beyond his unreadable contract.  Only way to move on from OEL is a buyout.  And IMHAO our owner won’t cut that cheque. 

I know, I know.

‘I think they see how the deadline and off-season goes. If they can add 2 NHL RHD they would probably give OEL another year to see if he can make it work with someone less chaotic. His buyout generally gets better if they can squeeze another season or two out of his rapidly declining game. 
‘If JR can’t move other contracts before the buyout window, all bets are off, he could do any number of crazy desperate things. 

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Cheers, for the work you put into this post. It’s an interesting comparison for each potential buyout target.

 

Before we pull the trigger, I want to assess how each player responds to the next coach/structure. This is why I’ve been in the minority, supporting a mid-season coaching change, if possible.*

 

For example, say the new coach is Tocchet (as rumoured), and Garland plays lights out for him. We get more value from an existing asset, and no buyout/retention is necessary. Wouldn’t we want to know that beforehand? It may go the other direction too (and likely will), as some players would hate his style/structure, and even waive a NMC…creating more options that preserve cap space.

 

*Some of you will say you don’t want the new coach bump, but I’m confident after losing Horvat, that we’ll remain in the bottom 10.  We have no goaltending, no shutdown checking line, and no shutdown pair D.

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36 minutes ago, Crabcakes said:

Give the presser another listen.  If deals aren't possible, then they're looking at buyouts.

 

And all this says to me is that they need some cap space so that they can start moving forward with the team.  Rutherford isn't going to accept another offseason with very little progress.

I think there is a restriction in #s of buyouts per season.  Besides, the best buyouts are in the lower pay range + term,

so the team isn't paying salary for years on end.

 

A combination of:

buyouts:  (if not on LTIR);   Poolman + Pearson 

retention:  $1mx3 Garland + $1.5mx2 Boeser  (probably during the offseason).

waivers: Dries, Stillman beginning next season

Trade: Schenn + Demers

Trade or retain:  Bo/Miller *contending team needs help to make the deal and will add a sweetener for it.

Trade after bonus:  Myers to a team that has ++ cap space  $1mx1yr.

 

JR also indicated that there will be some healthy cap increase in the coming seasons.

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The one guy I did not put on the list is Horvat, because he could not have a buyout..................but he could have retention on a trade

 

Now the 1 factor that was not put into my original post was that there is only 1 retention spot for this TDL.

 

So.......with that being said, he is what I see as the most likely...................

 

Horvat...............................I am looking for a home run on him, never mind his career year, he is a consistent, proven, relatively young, centerman

Miller.................................If I could move Miller, I would have no problem in retaining 1 to 2 million per year on him, and we know his relative value

Myers................................IMO, moving Myers after his bonus is paid, makes him have value, especially at 50% retained for his final year

OEL...................................sorry boys, we are stuck with him, especially as he still has something to give.....maybe buy him out in 2 years....that is a question!

Garland.............................Buy him out

Boeser...............................100% retain for value returned. He still has some nice goals in him, and is young enough.......at 50% retained, in the summer.

Pearson............................this is a no brainer, as with his injury, he may not even play next year, but could be sent down at a savings of $1,050,000

 

Note* if we do not use our only retention spot on a long term trade, we will have 3 retention spots come this summer.................

 

PS....................................

 

I still feel that the best move, would be to move Miller to NY Islander for Bailey, Raty and a 1st...Bailey only has a year and NYI need offense. Miller would give them that.

 

 

Edited by J.I.A.H.N
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6 minutes ago, higgyfan said:

I think there is a restriction in #s of buyouts per season.  Besides, the best buyouts are in the lower pay range + term,

so the team isn't paying salary for years on end.

 

A combination of:

buyouts:  (if not on LTIR);   Poolman + Pearson 

retention:  $1mx3 Garland + $1.5mx2 Boeser  (probably during the offseason).

waivers: Dries, Stillman beginning next season

Trade: Schenn + Demers

Trade or retain:  Bo/Miller *contending team needs help to make the deal and will add a sweetener for it.

Trade after bonus:  Myers to a team that has ++ cap space  $1mx1yr.

 

JR also indicated that there will be some healthy cap increase in the coming seasons.

We are not too far off on our thoughts on this Higgy

 

I probably disagree on Poolman and Pearson, but I agree on Stillman......I would probably try to get Dries down to Abby.......I actually like him as a call up

Sure on Schenn, and Demers isn't Demko is it? Cause we will have to go out in the back alley, and discuss that one! (Totally disagree if it is!)

Totally agree on the Myers call....and only one of Miller/Horvat.......but as I said above..........hope it is Miller, but it is probably Bo

Boeser at the draft, retained........Garland, I think I would try and trade as CC said, then if that does not work, buy him out

 

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24 minutes ago, J.I.A.H.N said:

We are not too far off on our thoughts on this Higgy

 

I probably disagree on Poolman and Pearson, but I agree on Stillman......I would probably try to get Dries down to Abby.......I actually like him as a call up

Sure on Schenn, and Demers isn't Demko is it? Cause we will have to go out in the back alley, and discuss that one! (Totally disagree if it is!)

Totally agree on the Myers call....and only one of Miller/Horvat.......but as I said above..........hope it is Miller, but it is probably Bo

Boeser at the draft, retained........Garland, I think I would try and trade as CC said, then if that does not work, buy him out

 

Yeah Demmer lol.  I meant Dermott:shock:

I absolutely agree on the Miller for Bailey, Raty and a 1st.  Strong possibility due to NYI are desperate to

make the playoff.  If not JT, they need a RW badly...

 

I don't like the Garland buy out. I think he has value and his remaining term is too long. Perhaps taking

back a player with less term or $.

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3 minutes ago, higgyfan said:

Yeah Demmer lol.  I meant Dermott:shock:

I absolutely agree on the Miller for Bailey, Raty and a 1st.  Strong possibility due to NYI are desperate to

make the playoff.  If not JT, they need a RW badly...

 

I don't like the Garland buy out. I think he has value and his remaining term is too long. Perhaps taking

back a player with less term or $.

You had me sweating! 

Boneclinks Bceu GIF - Boneclinks Bceu Bones GIFs

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