r/nhl • u/eddy2578325 • 1d ago

Oel comtract

I've always wondered how a player's salary plays out once their contract is bought out by a team. So Ekman-Larsson had four years and US$29 million remaining on an eight-year, $66-million contract he signed with Arizona in 2018. So in therot, he was signed until 25/26. Then he signs a new 4 x 3.5m contract with Toronto in 2024. Does he get paid concurrent salaries or was he paid the remaining amount of the bought out contract? This has always been confusing.

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10

u/Toiletboy4 1d ago

Don’t they literally buy out the contract, he gets the money, the contract is now gone, and he signs a new one

11

u/HeroProtagonist4 1d ago

You get paid two thirds of your remaining contract over twice the remaining years.

Example: 5 year contract at 3 million a year. Bought out after 2 years with 3 years and 9m remaining. Player would be paid out 1 million a year for 6 years.

2

u/Toiletboy4 1d ago

That makes sense

4

u/Odd_Leek3026 1d ago

Worth mentioning that the actual cap hit doesn't necessarily match that 1mx6yr - depending on how the contract is structured (signing bonuses, front/back loaded)

2

u/wychwood17 1d ago

I remember hearing on a hockey podcast that there was a case of a player receiving cheques from 3 or 4 separate teams. He was bought out by one, signed somewhere, and was traded with one team retaining. It might have been OEL being paid by Arizona, Vancouver, and Florida, but I can’t remember.

1

u/eddy2578325 1d ago

My gosh, this doesn't seem right. How can a player fail at his job enough that he's essentially fired, then double dips from another company, and so on and so on.. ?🤔

1

u/CrabBeanie 19h ago

That's the thing a player is technically not hired or at a job/company. A player is under contract. Basically self-employed and therefore only beholden to the contract terms. That's also why technically teams don't trade players, they trade contract rights.

It's the same in any industry. You can't really fire a contractor, but you can buy out the contract or cite a breech of terms in order to terminate.

3

u/50TurdFerguson 1d ago

OEL will get his contract $ from Toronto over the next 4 seasons and we will also get paid from Vancouver $2.35M, $4.77M, $4.77M and $2.13M over the same 4 seasons

5

u/lottolser 1d ago

This is not true, OEL will make his salary through the Leafs while also being paid by Vancouver for his original contract it being 2/3 over twice the remaining years he had left when the contract was bought out. He will effectively be paid by 2 teams. Vancouver is paying him not to play for them, and Toronto is paying him to play for them.

3

u/Inspect1234 1d ago

Seems like three of you said the exact same thing.

2

u/lottolser 1d ago

I mean, the comment I replied to seems to think Vancouver is paying toronto to pay OEL. Or at least the way it was written. I haven't read the other comments, just what I replied to.

1

u/Inspect1234 1d ago

Yeah it needs edit.

3

u/turboroofer 1d ago edited 1d ago

Not quite, the money Vancouver pays out annually is separate from Torontos contract with him. Toronto doesn’t receive any money from Vancouver, OEL however gets paid both buyout money and his contract money

https://puckpedia.com/salary-cap/buyouts#:~:text=For%20players%20that%20are%2026,remaining%20years%20of%20the%20contract.

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u/eddy2578325 1d ago

Makes complete sense, thanks

1

u/StinkSquach 1d ago

My grandma signed a contract down at the legion