Last week we saw two NHL defensemen hit the waiver wire as Wade Redden and Sheldon Souray were both demoted by their current clubs. They are just the latest victims of a wholly illogical and overlooked portion of the CBA ratified between the NHL and the NHLPA shortly after the work stoppage lost us the 2004-2005 NHL season.
The NHL buyout rules require the club to pay players 25 and over two thirds of the remaining salary, with players under 25 receiving one third, while taking a cap hit that is equal to a certain percentage of the buyout (it varies based on bonuses, etc) , spreading that cap hit out over double the remaining term.
These rules are in place to effectively punish teams for signing players to bad contracts. However, these rules do no service to the teams or the players themselves. While I agree that there still needs to be a punishment for these owners, the fact remains that the punishment is too severe and thus it discourages teams from buying out players; especially when an easier way out is to demote them, taking no cap hit at all, but burying the player’s career just because they can’t live up their high price tag.
As far as players are concerned, I’m relatively certain that Redden, Souray, Cristobal Huet and others would prefer to receive a portion of their funds and an opportunity to play with another NHL club rather than being banished to the minor leagues or loaned to European clubs. The best of both worlds would be a situation similar to what happened with Jonathan Cheechoo, who was bought out by the Senators and allowed to try out for the Dallas Stars.
We’ve seen it happen often. Jason Blake, Scott Gomez, Jeff Finger, Bryan McCabe, Redden, Souray, Huet and more are just players who, while still good enough to crack an NHL roster, are being considered cap headaches due to the amount of cap space they take up. They signed lucrative deals after solid performances and failed to live up to those contracts.
The CBA also states that contracts cannot be renegotiated, so the only logical option is what many GM’s are doing now. Demoting players to a minor league affiliate removes their cap hit from the pro roster. It essentially allows big market teams to get away signing bad deals because they can effectively bury their cap problems in the minors. The player still gets paid, but it effectively ends their careers.
While no solution is perfect, a slight adjustment in the length and / or size of a teams cap hit could encourage more player buyouts, giving them another shot at an NHL roster spot. Re-entry waivers does help somewhat, but ultimately when a player is free to negotiate with another club they have more control over their own destiny, rather than having a team try to orchestrate a trade for them.
Many are saying that Redden may not report to his minor league affiliate, effectively voiding his contract, which would allow him to become an unrestricted free agent. While this works out for Redden, I’m sure the NHLPA would have a fit over this move as it’s the player not honoring their contract and not the team. Redden just wants to play in the NHL. He can’t opt out of his deal, or re-structure it. He has no options at this point. The CBA prevents him from doing anything but rebel against the system.
With Donald Fehr at the helm, the NHLPA can head to the bargaining table with a new sense of confidence when the current CBA expires in 2012. I, for one, hope that they take a longer look at the buyout rules and how it’s affecting both teams and players. A few adjustments to the current system could encourage more teams to look at a buyout as a realistic option, giving players who just can’t meet contract expectations another shot at the NHL.
Popularity: 3%
Born and raised in Northern Ontario but currently living in Toronto, Tyler wouldn't have it any other way. Home to his two favourite sports teams, Tyler revels in the day to day sports experience that is Toronto. 
Was hearing on the grapevine that Souray might be looking to get back to the Canadiens. Heard anything about that?
Only in one spot and it was a forum. Somehow I doubt the Habs are desperate enough to pick up that much of a bloated contract to have another warm body in their defensive ranks, as it’s currently filled by Hamrlík.
I mean, I could see all this fuss over the guy if he’d led Jersey to the Finals
Except neither player has ever played for New Jersey. Little hint; if you’re going to spam blogs, at least read the articles first.
It seems that Souray has bad luck this year. First being demoted, then finding out that Edmonton doesn’t really miss him that much, and now on the DL list in Hershey. Guy’s having a hell of a time.