Cap Recapture Penalty

On the ice for the next few year we are the clear winner in the Subban-Weber trade.

BUT . . .

The last CBA introduced the Cap Recapture Penalty to punish front-loaded contracts. We paid Weber $56m over the first four year of his contract. His cap hit over that time totaled $31.4m. That means we had cap savings of $24.6. If Weber doesn't play to the very end of his contract, we're on the hook (in terms of cap space, not actual cash) for that $24.6m.

If, for example, Weber retired in the summer of 2021, with five years left on the contract, we'd be hit with a cap hit of $4.9m each season for the 2021-2022 through the 2025-2026 seasons. If Weber retired with one year left on the contract, we'd have cap hit of $24.6m (!) for the 2025-2026 season. Since we go the cap savings, not Montreal, we're the ones on the hook if Weber retires before 2026.

The Flyers really did their best to try to screw us with that offer sheet.

Let's hope (1) Weber plays the contract through to the end, or (2) the next CBA does away with the CRP.

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