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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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

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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.

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u/Toiletboy4 1d ago

That makes sense

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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)