Releasing Players, Buy-Outs, Waivers, and Retired Players

[WestCoastExpress]

Releasing Players:

Any player making under $1m per year can be dropped for free with no penalty ($0.5m-$0.9m per year)


Contract Buy-Outs:

Teams are permitted to buy-out a player's contract to obtain a reduced salary cap hit over the remaining length of the contract
Buy-out rules are in line with NHL rules

Buy-out amount is based on the age of the player at the time of the buy-out, as follows:
- 1/3 of the remaining contract value, if the player is younger than 26 at the time of the buy-out (x by 0.333)
- 2/3 of the remaining contract value, if the player is 26 or older at the time of the buy-out (x by 0.667)

A buy-out may be spread out over the total number of years the player has remaining on his contract (fewer years are allowed but never more)

The cap hit per year is calculated as follows:
- Multiply the remaining salary by the buy-out amount (as determined by age) to obtain the total buy-out cost
- Spread the total buy-out cost evenly over the remaining contract years

Examples:
Example (1) Player A is 29 years old. Contract is $8.0m (2022-2023). (Under contract for 3 years at $8.0m per year)
Buy-Out Calculation:
$8.0m x 3 years remaining = $24.0m remaining salary
Multiply $24.0m by 2/3 (player is 26 or older at time of buy-out):
24 x 0.667 = 16.01 -> Rounded = $16.0m total buy-out cost
- The $16.0m buy-out cost may be paid out over 3 years max (length of original contract)
- You may also pay the $16.0m buy-out cost over 1 year all at once, or over 2 or 3 years split up however you choose
Examples:
Split Over 2 Years: 2020-21 = $10.0m; 2021-22 = $6.0m
Split over 3 Years Differently: 2020-21 = $0m; 2021-22 = $10.5m; 2022-23 = $5.5m
Split over 3 Years Evenly: 2020-21 = $5.3m; 2021-22 = $5.3m; 2022-23 = $5.4m

Example (2) Player A is 25 years old. Contract is $4.0m (2023-2024). (Under contract for 4 years at $4.0m per year)
Buy-Out Calculation:
$4.0m x 4 years remaining = $16.0m remaining salary
Multiply $16.0m by 1/3 (player is under 26 at time of buy-out):
16 x 0.333 = 5.328 -> Rounded = $5.3m total buy-out cost
- The $5.3m buy-out cost may be paid out over 1, 2, 3, or 4 years, split up however you choose

Re-Allocating Buy-Out Funds:
To allow for maximum cap flexibility for future years, you may at any time re-allocate funds for a buy-out. 
Example:
A $15.0m buy-out originally split over 3 Years: 2020-21 = $5.0m; 2021-22 = $5.0m; 2022-23 = $5.0m
In 2021-22 if you realize you have an extra $5.0m of cap space to spare, you may re-allocate the 2022-23 buy-out cost to your 2021-22 books to relieve yourself of the $5.0m cap hit in 2022-23


Compliance Buy-Out: (For NEW GM's)

Any new GM to the league (2021-2022 season and later) will be awarded one compliance buy-out upon taking control of their franchise (no cap hit penalty)


Waivers:

Teams can send up to 3 players to the minors who would not otherwise qualify (over 31 games played)

Waivers happen in the NHL, and in PDH they are an opportunity to give teams who have minor league roster spots to house an unproductive and/or overpaid player without having to buy him out.

If you would like to send a player to the minors, he must clear a 48-hour waiver wire period.
During this 48-hour window, any team may put in a waiver claim.

If claimed, the claiming team would get the player at a reduced cap hit of 20% off of the contract value (80% of the contract). The original team who placed the player on waivers would still be responsible for paying the remaining 20%.

If the player goes unclaimed, you can then send the player to minors. While in the minors, your team may receive a slight cap hit reduction, as follows (same as in the NHL):
"If a player has a Cap Hit greater than the Buried Threshold:
If they are sent to Minors, the team's Cap Hit is (the player Cap Hit - Buried Threshold)
The Buried Threshold is $1.1m

If a player with a Cap Hit less than the Buried Threshold is sent down, their full Cap Hit no longer counts on the Team's total cap hit"

Example:
C Sidney Crosby, $8.7m (2024-2025)
You would like to send Crosby to the minors because he is under-performing, but you do not want to buy him out in the event he returns to form. He would first have to clear waivers.

Scenario A:
He is claimed off waivers.
The claiming team assumes Crosby's full contract, but at 80% of his current salary. His contract on the claiming team becomes:
C Sidney Crosby, $7.0m (2024-2025)
Your team, who put Crosby on waivers, is still responsible for paying the other 20% for the duration of Crosby's contract: $1.7m per year (2024-2025). This would show up under "Contract Buy-Outs and Cash Exchanges" on your roster

Scenario B:
He goes unclaimed.
Crosby can be placed on your Minor League Roster (you must have roster space or clear a roster spot)
His cap hit against your team's cap would be Cap Hit - Buried Threshold (8.7 - 1.1), so $7.6m.


You must make a separate post stating your are placing 'Player A' on waivers. This begins the 48-hour waiver window.
Mods will edit the post to reflect when the waiver window closes.

Waiver priority is determined by league standings at the time the waiver claim widow closes.
The team in last place when the waiver claim window closes has highest priority.
The priority list follows from worst to first in the standings. 

In the off-season, the final standings from the prior season will determine waiver priority order.

Waived players may be called back up to your NHL roster at any time.
Their contract reverts to the original, full cap hit (you must have the sufficient cap space).
There are no re-entry waivers - the player will immediately be placed onto your NHL roster.

* Players on 35-plus contracts ARE NOT eligible for waivers.

Trading Waived Players:
As per the NHL, if multiple teams put in a waiver claim on a player, the team who wins the waiver clam cannot immediately freely trade him.
The player would first have to be offered to the other teams who put in a waiver claim (they would get him for free at his current contract, no trade would have to be completed):

For example, if a player is placed on waivers and three team place a claim on him. The team lowest in the standings gets first dibs. If they then decide to trade the player, he would first have to be passed on by the other two teams. If one of those other two teams places a claim, the player would be theirs. If not, he can be traded

If there was only one team who placed a waiver claim in the first place, they would be able to trade the player freely


Retired Players:

Any player who retires from the NHL has his contract and cap hit nullified from your roster, UNLESS:

- You signed the player in FA to a multi-year contract and he was 35+ years of age at the time of signing (A 35-plus contract - see below)
- If your player on a [35+] contract retires, his remaining contract and cap him remain in full


What is a 35-plus Contract?

Any player signed in PDH Free Agency to a multi-year contract who is 35+ years of age at the time of signing

In PDH, this player will assume a 35+ contract, shown as follows:
Zdeno Chara, $6.5m (2023-2024) [35+]

Our rules for Waivers and Retirement for 35+ contracts will not include any players not signed in PDH FA