When you buy out a player in NHL 22, you terminate their contract early, removing them from your roster but incurring a salary cap penalty for a period longer than the original contract's remaining term. This action is typically used to clear cap space, remove underperforming players, or make room for new acquisitions and younger talent, although it comes at a significant financial cost spread over several years.
The Mechanics of a Buyout
A buyout is a strategic financial maneuver with specific implications for your team's salary cap. The cost and duration of the cap penalty depend primarily on the player's age at the time of the buyout and the remaining salary on their contract.
Calculating the Buyout Cost
The buyout cost is a percentage of the player's remaining salary, and this amount is then spread out over twice the remaining years of their original contract. This means that while you free up a roster spot immediately, you will carry a "dead cap" penalty for an extended period.
Here's how the buyout cost is calculated based on player age:
| Player Age | Buyout Cost (as % of remaining salary) | Cap Hit Duration |
|---|---|---|
| Under 26 | One-third (1/3) of remaining salary | Twice the remaining contract years |
| 26 or Older | Two-thirds (2/3) of remaining salary | Twice the remaining contract years |
Example:
Imagine a player aged 28 with two years and \$5 million remaining on their contract.
- Their buyout cost would be 2/3 of \$5 million = approximately \$3.33 million.
- This \$3.33 million would then be spread out over four years (twice the remaining two years), resulting in an annual cap hit of roughly \$833,333 for the next four years.
Conversely, if a player under 26 had the same remaining contract (2 years, \$5 million), their buyout cost would be 1/3 of \$5 million = approximately \$1.67 million, spread over four years, resulting in an annual cap hit of roughly \$416,667.
Impact on Salary Cap
The buyout penalty is applied directly to your team's salary cap. Even though the player is no longer on your active roster and doesn't receive their full salary, their buyout cost still counts against your cap. This "dead cap" money can significantly limit your ability to sign other players or extend current ones, making careful planning essential.
Why Buy Out a Player?
Teams consider buying out a player for several strategic reasons:
- Freeing Up Roster Space: Immediately creates an open spot on the active roster, allowing you to call up a prospect, sign a free agent, or facilitate a trade.
- Creating Cap Space (Long-Term): While a buyout initially creates a cap penalty, it often provides more cap relief than keeping an overpaid or underperforming player on the roster for the duration of their contract. This can be crucial for signing star players or managing future cap flexibility.
- Removing Underperforming Assets: A player who isn't living up to their contract's value can become a financial burden. A buyout allows you to cut ties and reallocate resources.
- Team Chemistry and Morale: Sometimes, removing a player who is a negative presence in the locker room, regardless of their on-ice performance, can benefit team morale.
Considerations Before a Buyout
Before initiating a buyout, consider the following:
- Long-Term Cap Implications: Understand the exact cap hit for each year the buyout penalty will apply. Ensure it aligns with your future financial plans.
- Player Value vs. Buyout Cost: Evaluate if the cap space gained from the buyout is worth the "dead cap" money you will carry. Sometimes, a trade might be a more favorable option if you can find a willing partner.
- Alternative Options: Explore other options like trading the player (potentially retaining some salary), sending them to the minor leagues (if eligible, for partial cap relief), or simply waiting for their contract to expire.
In NHL 22, a buyout is a powerful but costly tool. It provides immediate roster flexibility and can offer long-term cap benefits, but it requires careful calculation and consideration of its multi-year financial ramifications.
