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Front-loaded, Long-term Deals Not Buyout Friendly

January 31, 2009, 3:02 AM ET [ Comments]

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Despite what some have written, the long-term deals signed by Henrik Zetterberg and Vincent Lecavalier are not structured for a buyout in those final two seasons.

Here’s how the cap would be impacted in the event of a buyout – look at those huge cap hits that would compensate for the cap savings over the earlier portion of the contracts:



In Zetterberg’s case, the Wings would be saving $10,166,667 over the first ten years of the deal (the accumulated difference between the cap hit and salary). So if Zetterberg was bought out with two years to go, those ‘savings’ would count against the cap spread over the next two seasons.

With Lecavalier the savings are even more substantial - $12,954,543 over nine seasons would be added to the buyout amount that would count against the cap, spread over those two seasons.

More to come on Saturday,

Danny – [email protected]

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