FanPost

What a Theo buyout would look like

Glad the weekend's here -- I've been meaning to do this all week...

Last month, I calculated what buyouts for Michael Nylander and Chris Clark would look like in the summers of 2009 and 2010.Here’s the same calculation for Jose Theodore:

Step 1: Theodore has one year left on his contract at 4.5 Million.

Step 2: The buyout price is 2/3 of that – 3 Million.

Step 3: The annualized buyout price is the same because there is only one year left.

Step 4: The average over twice the length of the contract is 1.5 Million.

Step 5: Subtract the Step 4 number from each year’s actual salary to determine the "Buyout Savings" – 3 Million in 09/10.

Step 6: For the remaining life of the contract, subtract the Step 5 number (3 Million) from the original average annual contract value (4.5 Million): 1.5 Million.

The Step 6 number (1.5 Million) is the cap hit for 09/10; the Step 4 number is the cap hit for 10/11 (1.5 Million). So the bottom line is that if the team buys Theodore out, the cap hit in 09/10 is 1.5 Million and the cap hit in 10/11 is 1.5 Million. If not, the cap hit in 09/10 is 4.5 Million.

As pointed out in another fanpost, 10/11 is a crucial year because Semin and Backstrom are each free agents in the summer of 2010 and because the salary cap is likely to drop. From a pure salary cap perspective, it wouldn’t be crazy to keep Theodore around as the backup in 09/10 just to keep his salary from having any effect on 10/11. But if it was my call, I’d buy him out and re-sign Brent Johnson.

If this FanPost is written by someone other than one of the blog's editors, the opinions expressed in it do not necessarily reflect those of this blog or SB Nation.

X
Log In Sign Up

forgot?
Log In Sign Up

Forgot password?

We'll email you a reset link.

If you signed up using a 3rd party account like Facebook or Twitter, please login with it instead.

Forgot password?

Try another email?

Almost done,

By becoming a registered user, you are also agreeing to our Terms and confirming that you have read our Privacy Policy.

Join Japers' Rink

You must be a member of Japers' Rink to participate.

We have our own Community Guidelines at Japers' Rink. You should read them.

Join Japers' Rink

You must be a member of Japers' Rink to participate.

We have our own Community Guidelines at Japers' Rink. You should read them.

Spinner.vc97ec6e

Authenticating

Great!

Choose an available username to complete sign up.

In order to provide our users with a better overall experience, we ask for more information from Facebook when using it to login so that we can learn more about our audience and provide you with the best possible experience. We do not store specific user data and the sharing of it is not required to login with Facebook.

tracking_pixel_9355_tracker