Roberto Luongo: Know the Risks

by on January 7, 2013 in League News - 147 Comments

Roberto Luongo: Know the Risks
Joel Auerbach/Getty Images
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This just in tonight from Pierre Lebrun of ESPN, describing the cap benefit recapture component of the new CBA on existing deals over 6 years.

To wit: let’s say the Canucks trade Luongo soon. Luongo has played two years of his 12-year contract, the Canucks paying him $16.716 million in salary but only absorbing a $5.33 million cap hit each year. That’s a cap savings of $6.056 million over two years so far for Vancouver. Under this new rule, should the Canucks trade him now and he retires with three years left on his contract, Vancouver would be charged that $6.056 million in cap savings over the final three years left on his deal from 2019 to 2022. However, let’s say for argument’s sake Luongo gets traded to Toronto, the Maple Leafs also would be subject to cap penalties if Luongo retires before the end of his deal.

To wit, part 2: If Luongo were to play the next seven years of his deal in Toronto before retiring, the Leafs would be paying him $43.666 million in salary but only counting $37.31 million against the cap over those seven years, a cap savings of $6.356 million. So if Luongo retires with three years left on his deal (because his salary falls to $1.618 million in the 10th year and then $1 million in the last two years of the deal), the Leafs would get charged that $6.356 million on their cap spread evenly over the remaining three years of his deal.

The Leafs would be on the hook for 6.356/3 or around 2.12 million per season on the cap for all remaining seasons of the contract if they were to acquire Luongo and he were to retire with three years left on his deal.

On the upside, if Burke were to acquire Luongo in a trade, the return value should reflect that the Leafs will likely be incurring this part of the penalty. I can’t see Luongo fetching significant value with these conditions in mind.

In other CBA news, Brian Burke’s wish for a rule allowing the retainment of salary in trades has been granted with a limit of up to 50% of the contract value of the traded player.

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  • FT23

    How about: Bozak, Franson, lombardi, Scrivens for Luongo, Kassian, 4th 2013 and Mercier

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  • djamon

    And the Finals 2 years ago would have been a sweep if not for Luongo.

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  • wiski

    How do you sign a guy to a 12 year deal and want to trade him after 2? #redflagalarmbells

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  • http://twitter.com/J_hardt Hardt

    um, if its a unique position where you only really get to play one player, and it turns out you have a cheaper, equally talented solution available to you.

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  • djamon

    The easiest way to do that is to be born Mike Gillis and then 50 years later you do it.

    There’s literally no other way.

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  • JVR

    I betcha Gillis kind of wishes he didn’t trade Hodgson for Kassian, because Cody sure would look a hell of alot better than Lapierre as the 2nd line centre with Kesler out indefinitely.

    With that being said, I wouldn’t be surprised if the Canucks actually have some interest in Connolly.  His cap hit shouldn’t be a problem as cap didn’t go down for this season and his contract expires after this season.  Also, his hit is less than Luongo’s so it wouldn’t hurt them at all.

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  • Kurt!!

    ya connolly still looks good on paper ,sabers were laughing at us when we got him yet alot did not beleive them maybe we can do the same!

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  • CanuckintheUK

     Based on the cap penalty, if Burke trades for Lou it will be in a package deal with a total of 4 or 5 players plus picks.  This way Vancouver looks like they get something back.  Package includes Reimer going the other way then.

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  • CanuckintheUK

     That would be Lebda and Slaney for Luongo.  greater LOL

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  • jagith

    after reading the above article… i say we dont trade for him… he will definitely retire early i say in 4 to 5 years… and what if he sucks sooner? then what happens? we are going to be taking a huuuuuuge cap hit especially if he says fuck it.. im retiring… you cant afford to do that in a cap world especially with all the parity… we need the cap space…luongos trade value just went to shit…screw him and screw mike gillis.

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  • CanuckintheUK

     It all depends on the overall trade package we would have while acquiring Lou.  If we obtained other good players then it may still work.  Otherwise, Burke can use this potential to maybe negotiate a deal with another goalie like say Backstrom (we would only get Backstrom if he would agree to extend/re-sign) first

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  • jagith

     does it really make a difference with other players we get? if luongo retires in 4 to 5 years we are taking it up the rear against the cap… that is poor managing… cap hit could be a nightmare.. id rather stick with our goalies and keep going… and pray reimer can pull a jonathan quick…he is getting better and better each year… they stuck with him when everyone was unsure about him as well…

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  • Kurt!!

    dont forget we can also buy lou out after this year or the next….2 years of lou then a free pass…not bad in my books then a young gun can take over

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  • CanuckintheUK

     A buyout is not a free pass.  His buyout would be huge.  Not worth that scenario.  The Total Buyout cost would still be $22m then.   If we were planning on doing that it would make more sense to have signed a free agent goalie (say Backstrom at year end) for 2 years for less than $32m (the price of 2 years of Lou).. I think we could get the best goalie in the league for even 4 years at that price.

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  • WendelGilmour

    Here bro, check this out. You can taunt your friends with it;

    Deadspin ‏@DeadspinOne last time: Our hater’s guide to Notre Dame, the college football team for people who hate college football http://deadsp.in/mVmFPrx  #BCS

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  • Zeus_the_friendly_hobo

    I’ll put my hat in the ring.
    Even if Gillis would be prepared to take Komisarek, Connolly and Lombardi back the other way I would not trade for that 10 year millstone. Sure the next 3 years would look bright but after that we would shit the bed. Hes not worth the money simple as. Dont get me wrong Im dismissing his ability, he is class but the money doesnt make sense.
    I would have more respect for Burkie if he held by his principles and lost his job by not signing such a contract than mortgaging the future of the leafs for a few seasons of play off hockey – stanley cup champions we are not and we are a good 5 years away from that atleast.

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  • https://twitter.com/JoeStewart17 Joe_17

    k i dont get it. Did this article say that both teams – say Van and Tor are BOTH on the hook  for 6ish mil over the last 3 years?

    Or that Van get penalized for the first 2 years of the deal in van and tor get penalized for the last 3 while he was a leaf

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  • Optimustic

    Yep, and if we want to trade him after two, or he decides to quit after two???

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  • Optimustic

    Thanks much.  I have the friend to show it to too. :-)

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  • Optimustic

    Yep, I don’t have Lou, just his contract.  I’d have made a deal for him if the penalty would have been all on the Nucks, if he quit playing early. Gotta get ready for work, later folks.

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  • CanuckintheUK

    My pencilled opening lineup if NO TRADES/Injuries.  I think there will be a trade before the season starts.

    Lupul/Bozak/Kessel
    Kuli/Grabbo/Mac
    JVR/Kadri/Frattin
    Komarov/McClement/Brown

    Dion/Gunnar/
    Gardiner/Liles
    Franson/Komi

    Reimer/Scrivens

    Extras – Connolly/Lombardi/ Steckel/Holzer

    Real question is what do we do with the extras and determine who plays out of Kadri/Frattin/Connolly/Lombardi/Steckel/Komarov (McClement, JVR or Mac/Kuli are on line 3) so we have to many extras.. Not always fair or correct to then put Kadri/Frattin etc in the minors.  This is a contract year for Kadri.  He either makes the team in a Top 9 (ie. 2nd and 3rd line interchangeable) or he is incorporated in a trade imo).

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  • WendelGilmour

    I love that 3rd line, and have proposed it also. I think that’s now 4 of us who have. I keep Kadri and see what he can do, I’m confident he will prove to be an upgrade.

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  • Burtonboy

    Well this certainly throws a new wrinkle into any Luongo trade . Luongo is a great goalie but how many more peak yrs can we expect from him? For all we know Lou may have seen his best yrs already.The other side of that coin is even with Luongo can the Leafs reasonably expect to compete for a cup in the near future. Personally I don’t think so. Are we going to mortgage our future with that contract just to make the playoffs? If we had a realistic chance to win in the near future ” maybe ” it might be worth it but the way it looks to me right now we should just stay the fuck away from that contract 

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  • WendelGilmour

    Agreed. I was all for it until this info. came out, now I wouldn’t do it. BB should find another way if he’s going after a G.

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  • Burtonboy

    I agree . Gillis signed this guy to that stupid contract and he’s trying to offload what amounts to a very heavy anchor . I say let him sink to bottom of the bay and live with his stupid mistake

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