After failing to get one the big names to waive their no-trade or movement clauses, the Leafs will have to think about plan B over the summer. Maple Leaf sports and entertainement will have major finacial decisions to make, concerning, Bryan McCabe, Darcy Tucker, and Pavel Kubina. In those cases, the last resort is a contract buyout. Even with the buyouts, the Leafs would still be on the hook cap wise, but for lesser money and absorbed over a longer period of time, which gives a bit of breathing room, as only the 2 thirds of the contract is counted against your cap hit.
Let’s take the McCabe situation as an example. He has three years remaining, valued at14,500,000. At 2 thirds, it comes up to 9,633,333.33, which would be spread out over six years. In the first two years, the cap hit would be 1,650,000, for a savings of 4,100,000 spread over two years. In the four next years and the remainder of the contract, the cap hit will be 1,491,666.66, which comes up to a savings of 4,258,333.34, spread out over two years, for an amount of 2,129,166.67 in year 3 and 4. Years following, it will be dead cap space, as the savings will have been absorbed in the first four years. In Tucker’s case, he has 9 million in salary coming to him, at 2 thirds, it’s 6 million over six years, at a cap hit of 1 million a year approx. The savings though would be absorbed in the first three years, the other 3, is dead space. Kubina and McCabe buyouts, in the long run, would free up the most cap space, especially if they want to resign Sundin, at 5 or 6 million next season.
