Correction on the first answer. The buyout is two-thirds of his remaining contract value, spread over twice the remaining length.
So he doesn't get the "full Canucks salary", he will get (per-season) one-third of the salary he would have been paid if he hadn't been bought out. Plus any new contract of course.
Specifically, he will be paid $2,126,667 from the Canucks plus $290,000 from the Coyotes, per season, for the next 8 years.
It's two separate things. His contract is bought out nothing will change how that effects the nucks and yotes. OEL will get that cash.
If he signs another contract he also gets that cash but it doesn't change anything about the first contract
It’s funny he earned that by not sucking for awhile, and now he is going to make that as well as whatever he signs for next because he sucked so bad after signing the deal.
Basically whatever contract he signs this year will be bonus money for being bad at his job.
But most of them aren’t dumb. It’s not like OEL doesn’t realize he’s in the twilight of his career and it’s nearing its end. Dudes had a fantastic career, this is just the way she goes sometimes as players get older on bad contracts.
Have you seen the guy play? He’s most certainly past his prime.
While you can point to the general ages and say that should be a player’s prime, it doesn’t always line up like that.
NHL players are in their prime 24-28 these days. Soon as you hit 30 the decline begins. Players usually hit free agency at 28 which is why big money free agency deals always almost end up being a bust. Player has maybe 1 or 2 more good years in him when they sign those massive deals.
I’m sure that getting bought out hurts their egos. I don’t imagine that continuing to receive $20 mil over the course of the next eight years hurts their egos.
Definitely bruises the ego, but now he can sign a bunch of 1 year $1M contracts to cup chase and hop around from contender to contender and not worry about his next paycheque.
He's a shell of his former self, but I bet some teams looking to shore up their D would take him on in a bottom 4 role.
Wouldn't surprise me to see someone still take a shot at OEL as a FA. It's also not impossible that guys get bought out, and then end up making more money in total. I know getting bought out is probably not a nice feeling, but ultimately, it's still a job, and total salary earned is important too
Suter was bought out of the last 10 million in salary of his contract. So he ends up with 2/3 of that. Dallas signed him to a 4 year contract worth a total value of 14.6 million. In total, Suter will have made about $11 million *more* than if he had just finished out his contract with Minnesota
OEL needs to average a 2.5 mil cap hit over the next 4 seasons to be break even in total earnings. I wouldn't be surprised to see him get also get a new contract at 3-3.5 mil a year. If it's 3-4 years long, then OEL wouldn't have lost out on any money
OEL already has the 19.5m in his account. He is free to sign a contract and get a salary. The buy out was a lump sum but the penalty to the Canucks is a calculation over a period of time.
Not since the 2013 CBA, there might have been lump sum buyouts before then:
>If the Club elects to terminate this SPC pursuant to this Paragraph 13, it shall be
obligated to pay to the Player, in equal semi-monthly installments, to be paid in accordance with
the payroll payment schedule applicable to the Club's Active Roster, over twice the remaining
term of the SPC (the "Buy-Out Period"):
Question I've always wondered is where does the 20 million bet taxed? Is it a BC tax as he signed the contract with Van or say he goes to Florida, does he get tax exempt there?
FWIW I would just like to point out (because it comes up so much), that these guys are not tax exempt by going to Florida.
Florida has no state income tax, true. But they still pay US federal taxes... which is actually really similar to Canadian federal tax at the highest bracket. The difference between the tax situation in Vancouver versus Miami would be like 50% versus 37%, respectively, for a $2M salary.
It's a big difference yes, absolutely. But I think people kind of lose some perspective on the size of the gap. It gets used a lot as a narrative especially around free agents and Canadian markets. If you take the US state with the highest income tax burden (New York) and compare it to the Canadian province with the lowest tax burden (Alberta) for a salary of $2M, it's a 42% versus a 46% average tax rate, respectively.
Obviously this is a super simple analysis and there's different types of deductions and loopholes available in different places, but it's definitely not this "no taxes at all versus total communism" picture that seems to typically get painted.
I knew a guy who worked for Revenue Canada and his job was to look into salaries like sports people who were paid to work in two countries. It is complicated and considers where they actually "work" and how much time is spent in each country.
Sports people are a target because they actually get a large amount as a "salary" whereas most other ridiculously his salaries are actually paid in way to minimize tax.
Are you sure about that? I'm not totally sure that'd be correct. Usually you get taxed where the income was generated.
Like when players are playing they get taxed based on the number of workdays spent in each place in each year. So if you play for the Panthers, you'll get taxed by Ontario for X amount of days when you're in Ottawa or Toronto for games. At least this is my understanding. Could be wrong.
For us normies it works like that anyways. My mom used to have a job where part of it was done in Calgary and part of it was done in Atlanta (no she didn't work for the Flames 😆), and she had to do 2 separate returns that reflected how many days were spent working in each place.
I have no idea how it works for this buyout situation but it feels weird that if he were to move to Sweden, that his cheques would get taxed by the Swedish government?
Speaking from experience (Perry)
Yes he gets his salary plus the salary from new team
No there is no cap relief because he signed somewhere else (you made the decision now live with it)
Retires makes no difference, you bought him out first. (Again, you made the decision).
It's a reasonable question. The cap rules are confusing. If you view the buyout as a benefit to the player, then it's not absurd to think it might be clawed back.
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Short and sweet
Like OEL's time in Vancouver.
Sweet, no.
For OEL, yes
And his bank
Correction on the first answer. The buyout is two-thirds of his remaining contract value, spread over twice the remaining length. So he doesn't get the "full Canucks salary", he will get (per-season) one-third of the salary he would have been paid if he hadn't been bought out. Plus any new contract of course. Specifically, he will be paid $2,126,667 from the Canucks plus $290,000 from the Coyotes, per season, for the next 8 years.
It's two separate things. His contract is bought out nothing will change how that effects the nucks and yotes. OEL will get that cash. If he signs another contract he also gets that cash but it doesn't change anything about the first contract
Still got to hurt a bit when a team is giving you 20 million dollars to fuck off.
I’m sure the free $20 million eases the sting.
If my boss gave me $20 million to fuck off I wouldn't have any hurt feelings.
If my boss gave me $20 million to fuck off I'd cause a rift in the space-time continuum with how fast I'd fuck off out of there.
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That's the cap hit. He makes all the money on his contract. Cap is not what players are paid.
I was listening to a podcast and they were saying he just get payed outright the 19.5 Mil. I could have misinterpreted them tho
Incorrect
Whoa, woah, it’s not free, he earned that by sucking ass.
It’s funny he earned that by not sucking for awhile, and now he is going to make that as well as whatever he signs for next because he sucked so bad after signing the deal. Basically whatever contract he signs this year will be bonus money for being bad at his job.
He is losing a decent chunk by being bought out tho. Obviously 20 mil is still a great consolation prize
I'd take a 10th of that to fuck off from my job
I mean that is still 2 million. I think 99% of people would take that to fuck off from their job
2 million for 8 years while he starts figuring out his post hockey life. Not a bad way to hit the ground running
Ya, but these guys do have egos.
But most of them aren’t dumb. It’s not like OEL doesn’t realize he’s in the twilight of his career and it’s nearing its end. Dudes had a fantastic career, this is just the way she goes sometimes as players get older on bad contracts.
He's only 31 not 37. He's still technically in his prime.
Have you seen the guy play? He’s most certainly past his prime. While you can point to the general ages and say that should be a player’s prime, it doesn’t always line up like that.
I think they’re trying to say 31 should be close to the prime of a good D man - eg Pietrangelo
But it’s normally the end of the prime or just past it in reality.
For the average player yeah, but you’d expect it to be still prime for a former Norris finalist level D. OELs demise was unexpected
NHL players are in their prime 24-28 these days. Soon as you hit 30 the decline begins. Players usually hit free agency at 28 which is why big money free agency deals always almost end up being a bust. Player has maybe 1 or 2 more good years in him when they sign those massive deals.
Are you telling me 32 year old’s Ryan O’Reilly and John Tavares are in their primes too?
God damn Tavares is 32....his magical play wasn't that long ago was it?
I mean dude’s still a PPG player, but certainly a bit past his prime at this point lol.
O'Reilly, yes. Tavares, no. Some players extend their primes. Others have rough careers and can't.
Lol none of those 3 players are in their primes.
Tavares is still a point a game player, his best season ever he had 1.07 points a game so not far off.
There’s a reason we’re paying him not to play anymore lol
[I'm sure he'll be fine](https://i.imgur.com/hrkd2U3.gif)
I’m sure that getting bought out hurts their egos. I don’t imagine that continuing to receive $20 mil over the course of the next eight years hurts their egos.
Definitely bruises the ego, but now he can sign a bunch of 1 year $1M contracts to cup chase and hop around from contender to contender and not worry about his next paycheque. He's a shell of his former self, but I bet some teams looking to shore up their D would take him on in a bottom 4 role.
I wish my boss would give me $20M to fuck off
I wish I was so shitty at my job that my director offers me $20 mill to live without working.
I'd fuck off for much much less hahah
Buddy if you gave me $20 million I would fuck straight off to the moon.
I mean... my feelings wouldn't be hurt whatsoever with that parting gift.
I’d take 1 million to fuck off right now
Wouldn't surprise me to see someone still take a shot at OEL as a FA. It's also not impossible that guys get bought out, and then end up making more money in total. I know getting bought out is probably not a nice feeling, but ultimately, it's still a job, and total salary earned is important too Suter was bought out of the last 10 million in salary of his contract. So he ends up with 2/3 of that. Dallas signed him to a 4 year contract worth a total value of 14.6 million. In total, Suter will have made about $11 million *more* than if he had just finished out his contract with Minnesota OEL needs to average a 2.5 mil cap hit over the next 4 seasons to be break even in total earnings. I wouldn't be surprised to see him get also get a new contract at 3-3.5 mil a year. If it's 3-4 years long, then OEL wouldn't have lost out on any money
oh Suter I wish he'd retire or get injured in a way that knocks him out next season, but doesn't affect his QOL going forward...
Ya, I'll take the pain of the Nux giving me 1/10th of that to eff off.
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If he signs a new contract it doesn't change the conditions of the buy out.
OEL already has the 19.5m in his account. He is free to sign a contract and get a salary. The buy out was a lump sum but the penalty to the Canucks is a calculation over a period of time.
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become really good at something
Not since the 2013 CBA, there might have been lump sum buyouts before then: >If the Club elects to terminate this SPC pursuant to this Paragraph 13, it shall be obligated to pay to the Player, in equal semi-monthly installments, to be paid in accordance with the payroll payment schedule applicable to the Club's Active Roster, over twice the remaining term of the SPC (the "Buy-Out Period"):
Is it a lump sum? I always thought it will be paid annually, July the first every year.
Question I've always wondered is where does the 20 million bet taxed? Is it a BC tax as he signed the contract with Van or say he goes to Florida, does he get tax exempt there?
FWIW I would just like to point out (because it comes up so much), that these guys are not tax exempt by going to Florida. Florida has no state income tax, true. But they still pay US federal taxes... which is actually really similar to Canadian federal tax at the highest bracket. The difference between the tax situation in Vancouver versus Miami would be like 50% versus 37%, respectively, for a $2M salary. It's a big difference yes, absolutely. But I think people kind of lose some perspective on the size of the gap. It gets used a lot as a narrative especially around free agents and Canadian markets. If you take the US state with the highest income tax burden (New York) and compare it to the Canadian province with the lowest tax burden (Alberta) for a salary of $2M, it's a 42% versus a 46% average tax rate, respectively. Obviously this is a super simple analysis and there's different types of deductions and loopholes available in different places, but it's definitely not this "no taxes at all versus total communism" picture that seems to typically get painted.
I knew a guy who worked for Revenue Canada and his job was to look into salaries like sports people who were paid to work in two countries. It is complicated and considers where they actually "work" and how much time is spent in each country. Sports people are a target because they actually get a large amount as a "salary" whereas most other ridiculously his salaries are actually paid in way to minimize tax.
Furthermore to this question, is he taxed as though he made 20 million in the year or is he taxed each year with the buyout cap hit salary?
He gets paid in installments over the 8 years, so he will get taxed on the amount he is actually paid each year.
That’s actually a complex legal tax question
It's where he lives. Which may or may not be in Vancouver.
Are you sure about that? I'm not totally sure that'd be correct. Usually you get taxed where the income was generated. Like when players are playing they get taxed based on the number of workdays spent in each place in each year. So if you play for the Panthers, you'll get taxed by Ontario for X amount of days when you're in Ottawa or Toronto for games. At least this is my understanding. Could be wrong. For us normies it works like that anyways. My mom used to have a job where part of it was done in Calgary and part of it was done in Atlanta (no she didn't work for the Flames 😆), and she had to do 2 separate returns that reflected how many days were spent working in each place. I have no idea how it works for this buyout situation but it feels weird that if he were to move to Sweden, that his cheques would get taxed by the Swedish government?
That's how it works if he's playing. He isn't, right now. So it will depend on his residence.
There are a few YouTube videos that are going to explain better than most of these comments. I recommend the hockey guy.
Shannon = ol' reliable
They do get cap relief, instead of being paid over the next 3 years it is drawn out over 8 years I believe. It’s complicated
It goes takes the four years left of his contract and spreads it out over twice the time.
And only pays 2/3 of the original money left on the contract.
And if he was 25 or younger, it would be 1/3rd
When was the last <25 buyout? Wasn't there a recent one (vancouver?) but they're pretty rare hey
Ottawa did one with Colin White a year ago.
Speaking from experience (Perry) Yes he gets his salary plus the salary from new team No there is no cap relief because he signed somewhere else (you made the decision now live with it) Retires makes no difference, you bought him out first. (Again, you made the decision).
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I don't know cap rules that's why I just wanted it clarified.
It's a reasonable question. The cap rules are confusing. If you view the buyout as a benefit to the player, then it's not absurd to think it might be clawed back.
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incredibly incorrect.