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Contract termination for Loui

Created by: alwaysnextyear
Team: 2020-21 Vancouver Canucks
Initial Creation Date: Jul. 2, 2020
Published: Jul. 2, 2020
Salary Cap Mode: Basic
Description
With no CBO's and a possible multi-season flat cap, some have brought up the idea of mutual contract termination for players with bad contracts.

For Loui Eriksson that would mean he'd be forfeiting $5 million total over two years after his 2020 bonus is paid, despite his cap hit being $6m each year. $5 mill is hard to walk away from for any player, and especially when the team also has the option of a regular buyout that pays out 2/3's of the remaining cash value to the player. However, Loui's contract won't be bought out as it saves the team very little cap space over the two seasons because of it's bonus structure.

Instead, Benning can inform Loui he'll be earning his remaining salary riding the bus in Utica for 2 years. It's a dick move by management, but in this case Loui might consider the termination so that he could then be free to sign with any other NHL team. Even signing a couple $1-1.5 million, 1 year deals would make up at least some of that $5 million he'd be walking away from, but he'd be in the NHL playing in a much more hospitable situation on a team that wants him. For a player that's earned an estimated 56 million over his career, is he going to choose an extra 2 to 3 million to play in the minors for two years, or earn a little less and continue playing in the NHL?

I think there's a decent chance a mutual termination happens, not just for Loui, but also other bad veteran contracts that have had most of the cash already paid out.
Free Agent Signings
RFAYEARSCAP HIT
2$2,750,000
2$2,750,000
2$2,750,000
2$900,000
2$900,000
UFAYEARSCAP HIT
4$5,500,000
1$900,000
5$3,750,000
Trades
VAN
    Not a trade -- Mutual contract termination between Eriksson and the Canucks
    Buyouts
    Recapture Fees
    DraftRound 1Round 2Round 3Round 4Round 5Round 6Round 7
    2020
    Logo of the VAN
    Logo of the VAN
    Logo of the VAN
    Logo of the VAN
    Logo of the ANA
    2021
    Logo of the VAN
    Logo of the VAN
    Logo of the VAN
    Logo of the VAN
    Logo of the VAN
    Logo of the VAN
    Logo of the VAN
    2022
    Logo of the VAN
    Logo of the VAN
    Logo of the VAN
    Logo of the VAN
    Logo of the VAN
    Logo of the VAN
    Logo of the VAN
    ROSTER SIZESALARY CAPCAP HITOVERAGES TooltipBONUSESCAP SPACE
    23$81,500,000$79,101,878$1,700,000$3,700,000$2,398,122
    Left WingCentreRight Wing
    Logo of the Vancouver Canucks
    $5,250,000$5,250,000
    C, LW, RW
    UFA - 3
    Logo of the Vancouver Canucks
    $925,000$925,000 (Performance Bonus$2,850,000$3M)
    C, LW
    UFA - 1
    Logo of the Vancouver Canucks
    $5,875,000$5,875,000
    RW
    UFA - 2
    Logo of the Vancouver Canucks
    $3,750,000$3,750,000
    LW
    UFA - 1
    Logo of the Vancouver Canucks
    $4,125,000$4,125,000
    C
    UFA - 3
    Logo of the Vancouver Canucks
    $2,750,000$2,750,000
    RW, LW
    UFA - 2
    Logo of the Vancouver Canucks
    $3,366,666$3,366,666
    LW
    UFA - 1
    Logo of the Vancouver Canucks
    $2,750,000$2,750,000
    C, RW
    UFA - 1
    Logo of the Vancouver Canucks
    $3,500,000$3,500,000
    LW, RW
    NMC
    UFA - 3
    Logo of the Vancouver Canucks
    $3,000,000$3,000,000
    LW
    M-NTC
    UFA - 2
    Logo of the Vancouver Canucks
    $3,000,000$3,000,000
    C
    M-NTC
    UFA - 2
    Logo of the Vancouver Canucks
    $900,000$900,000
    RW, C
    UFA - 2
    Left DefenseRight DefenseGoaltender
    Logo of the Vancouver Canucks
    $916,667$916,667 (Performance Bonus$850,000$850K)
    LD
    UFA - 1
    Logo of the Vancouver Canucks
    $6,000,000$6,000,000
    RD
    NTC
    UFA - 4
    Logo of the Vancouver Canucks
    $5,500,000$5,500,000
    G
    UFA - 6
    Logo of the Vancouver Canucks
    $6,000,000$6,000,000
    LD
    NMC
    UFA - 1
    $3,750,000$3,750,000
    RD
    UFA - 4
    Logo of the Vancouver Canucks
    $1,050,000$1,050,000
    G
    UFA - 1
    Logo of the Vancouver Canucks
    $2,750,000$2,750,000
    RD
    UFA - 2
    Logo of the Vancouver Canucks
    $900,000$900,000
    LD
    UFA
    ScratchesInjured Reserve (IR)Long Term IR (LTIR)
    Logo of the Vancouver Canucks
    $900,000$900,000
    LW, RW
    UFA - 2
    Logo of the Vancouver Canucks
    $4,375,000$4,375,000
    RW, C
    M-NTC
    UFA - 1
    Logo of the Vancouver Canucks
    $2,000,000$2,000,000
    LD/RD
    M-NTC
    UFA - 1

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    Jul. 2, 2020 at 3:55 p.m.
    #1
    v5 CBJ GM
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    Interesting
    Jul. 2, 2020 at 3:56 p.m.
    #2
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    No chance.
    Jul. 2, 2020 at 3:59 p.m.
    #3
    What in tarnation
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    Bah. Naive and wishful thinking.

    For instance, there's no guarantee that Eriksson or any of the bad contract veterans would even get new contracts. As far as I'm concerned, Eriksson is not a NHL level player anymore.

    Let the guy "earn" what he's been promised and work with it accordingly.
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    Jul. 2, 2020 at 4:02 p.m.
    #4
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    alwaysnextyear
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    Quoting: justaBoss
    Bah. Naive and wishful thinking.

    For instance, there's no guarantee that Eriksson or any of the bad contract veterans would even get new contracts. As far as I'm concerned, Eriksson is not a NHL level player anymore.


    He's actually still a pretty good defensive forward, with the possession stats to back it up. The problem is that he's being paid to be a top 6 forward, which he no longer is.
    Jul. 2, 2020 at 4:03 p.m.
    #5
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    That’s extremely wishful thinking. You also need to consider you lose a ton of credibility with FAs and Eriksson will have to rent/purchase a new home, relocation costs, etc.
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    Jul. 2, 2020 at 4:04 p.m.
    #6
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    alwaysnextyear
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    Quoting: EnvironmentalTwister
    No chance.


    Did you read the description? Veteran players may think twice about this if they have to earn their remaining money in the minors. I'm not saying it will definitely happen or even that it's likely, but it is definitely possible. I'd say there's no chance if he still had 12 million owing to him; anyone would suck it up and ride the bus for that kind of money if they knew they weren't going to earn anywhere near that much again.
    Jul. 2, 2020 at 4:05 p.m.
    #7
    What in tarnation
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    Quoting: alwaysnextyear
    He's actually still a pretty good defensive forward, with the possession stats to back it up. The problem is that he's being paid to be a top 6 forward, which he no longer is.


    Dunno which team would risk taking him really.
    Jul. 2, 2020 at 4:06 p.m.
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    While it seems like this is unrealistic to some, I think this is the most probable outcome. $5M is a lot of money. However, he has already made $50+, he can still make money in Sweden or elsewhere.

    I think it's less likely he will go to Utica for the next 2 years and either subject his family to a small town or live away from them. I don't think that's probable.

    Most likely scenario is that he walks away.
    alwaysnextyear liked this.
    Jul. 2, 2020 at 4:07 p.m.
    #9
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    Quoting: alwaysnextyear
    Did you read the description? Veteran players may think twice about this if they have to earn their remaining money in the minors. I'm not saying it will definitely happen or even that it's likely, but it is definitely possible. I'd say there's no chance if he still had 12 million owing to him; anyone would suck it up and ride the bus for that kind of money if they knew they weren't going to earn anywhere near that much again.



    why would he walk away from that money
    Jul. 2, 2020 at 4:12 p.m.
    #10
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    alwaysnextyear
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    Quoting: justaBoss
    Dunno which team would risk taking him really.


    Any team looking for a relatively cheap defensive winger should. He was 10th overall last year in team Corsi% (48.3) among regular skaters despite starting 2/3's of his shifts in the defensive zone, and was actually trusted quite a few times late in the season as a shut-down guy when VAN was protecting a lead late in the game.
    Jul. 2, 2020 at 4:20 p.m.
    #11
    What in tarnation
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    Quoting: alwaysnextyear
    Any team looking for a relatively cheap defensive winger should. He was 10th overall last year in team Corsi% (48.3) among regular skaters despite starting 2/3's of his shifts in the defensive zone, and was actually trusted quite a few times late in the season as a shut-down guy when VAN was protecting a lead late in the game.


    And lastly, why would he choose to take a bottom-6 role with minimal contract or the same role with a $6M contract...
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    Jul. 2, 2020 at 4:23 p.m.
    #12
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    alwaysnextyear
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    Quoting: EnvironmentalTwister
    why would he walk away from that money


    For a 34 year old family man that's already made more money than god, having the choice of lifestyle for 2 FULL SEASONS (whether signing with another NHL team or a team back in Sweden) would be incredibly important. Forfeiting 2-3 million in total earnings isn't a lot in the grand scheme of things when the alternative is red-eye bus rides in the AHL and never getting another shot in a top league again.
    Jul. 2, 2020 at 4:25 p.m.
    #13
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    alwaysnextyear
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    Quoting: justaBoss
    And lastly, why would he choose to take a bottom-6 role with minimal contract or the same role with a $6M contract...


    Because in this scenario a bottom 6 role with a $6M contract won't be an option, unless it's in the AHL. And he won't be earning $6M there either, he's only owed $5M more over the next two seasons in actual earnings.
    Jul. 2, 2020 at 4:28 p.m.
    #14
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    Quoting: sedin33
    While it seems like this is unrealistic to some, I think this is the most probable outcome. $5M is a lot of money. However, he has already made $50+, he can still make money in Sweden or elsewhere.

    I think it's less likely he will go to Utica for the next 2 years and either subject his family to a small town or live away from them. I don't think that's probable.

    Most likely scenario is that he walks away.


    Quoting: EnvironmentalTwister
    why would he walk away from that money


    Quoting: justaBoss
    And lastly, why would he choose to take a bottom-6 role with minimal contract or the same role with a $6M contract...


    Agree with @alwaysnextyear See my rationale above
    Jul. 2, 2020 at 4:28 p.m.
    #15
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    alwaysnextyear
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    Quoting: BStinson
    That’s extremely wishful thinking. You also need to consider you lose a ton of credibility with FAs and Eriksson will have to rent/purchase a new home, relocation costs, etc.


    It might be wishful thinking, but I guarantee you Benning is at least talking about it with Loui and his agent. I agree it's a strong-arm, dick move by management that doesn't look good, but desperate times (and these are) call for desperate measures.
    Jul. 2, 2020 at 4:29 p.m.
    #16
    What in tarnation
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    Quoting: alwaysnextyear
    Because in this scenario a bottom 6 role with a $6M contract won't be an option, unless it's in the AHL. And he won't be earning $6M there either, he's only owed $5M more over the next two seasons in actual earnings.


    Minors salary for him is $4M a year.

    That's almost 6 times better than what he'd get with league minimum contract.
    Jul. 2, 2020 at 4:33 p.m.
    #17
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    alwaysnextyear
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    Quoting: justaBoss
    Minors salary for him is $4M a year.

    That's almost 6 times better than what he'd get with league minimum contract.


    I mentioned in my description this termination would be after his $3M 2020 signing bonus is paid. That leaves $1M in salary for 2020/21, a $1M 2021 signing bonus, and a $3M salary in 2021/22. Total is $5M.
    Jul. 2, 2020 at 4:35 p.m.
    #18
    What in tarnation
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    Quoting: alwaysnextyear
    I mentioned in my description this termination would be after his $3M 2020 signing bonus is paid. That leaves $1M in salary for 2020/21, a $1M 2021 signing bonus, and a $3M salary in 2021/22. Total is $5M.


    Even that $5M is still 5 times better overall than taking one year of league minimum deal.

    Just don't see the point...
    Jul. 2, 2020 at 4:46 p.m.
    #19
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    alwaysnextyear
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    Quoting: justaBoss
    Even that $5M is still 5 times better overall than taking one year of league minimum deal.

    Just don't see the point...


    As I mentioned in some of my other responses, the point is lifestyle quality and freedom to pursue his career in a depth role for a top league team (NHL or SEL) for two years VS. making an extra $2 to $3 million playing in the AHL for two years. I'm betting if he's given that ultimatum he'd think awfully hard about it.
    Jul. 2, 2020 at 4:53 p.m.
    #20
    What in tarnation
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    Quoting: alwaysnextyear
    As I mentioned in some of my other responses, the point is lifestyle quality and freedom to pursue his career in a depth role for a top league team (NHL or SEL) for two years VS. making an extra $2 to $3 million playing in the AHL for two years. I'm betting if he's given that ultimatum he'd think awfully hard about it.


    If I were given such as dickish ultimatum from my own workplace I'd absolutely make the decision which is most harmful for my team...
    Jul. 2, 2020 at 4:58 p.m.
    #21
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    alwaysnextyear
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    Quoting: justaBoss
    If I were given such as dickish ultimatum from my own workplace I'd absolutely make the decision which is most harmful for my team...


    And it would absolutely be your right to make that choice. But i’m going to go out on a limb and guess you’re not a 34 YO family man who’s already earned 56M in his career? That context makes a difference.
    Jul. 2, 2020 at 6:10 p.m.
    #22
    NoQuitInNewYork
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    Makes sense to get rid of the eriksson contract
    Jul. 2, 2020 at 7:54 p.m.
    #23
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    If Eriksson thought that he was being misused in Vancouver and thought a change of scenery could revitalize his career and get him a similar paycheck ($2.5M+) elsewhere (i.e. Ilya Kovalchuk), then I could see him going for mutual termination. However, it's pretty clear that Eriksson isn't the offensive player he once was, and isn't worth anywhere near his contract value. He's not going to just walk away from $5M in guaranteed money (he just received his $3M signing bonus for 2020-21 yesterday).
    Jul. 2, 2020 at 7:58 p.m.
    #24
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    Quoting: alwaysnextyear
    Because in this scenario a bottom 6 role with a $6M contract won't be an option, unless it's in the AHL. And he won't be earning $6M there either, he's only owed $5M more over the next two seasons in actual earnings.


    Why do DeMelo and Markstrom sign those contracts knowing you'll have no problem sending them to the minors to try and get out of their contracts????
    Jul. 2, 2020 at 9:03 p.m.
    #25
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    alwaysnextyear
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    Quoting: tkecanuck341
    If Eriksson thought that he was being misused in Vancouver and thought a change of scenery could revitalize his career and get him a similar paycheck ($2.5M+) elsewhere (i.e. Ilya Kovalchuk), then I could see him going for mutual termination. However, it's pretty clear that Eriksson isn't the offensive player he once was, and isn't worth anywhere near his contract value. He's not going to just walk away from $5M in guaranteed money (he just received his $3M signing bonus for 2020-21 yesterday).


    You might be right, 5M is a lot to walk away from. But it just depends on the circumstances. As you say it's unlikely he'll make up that same amount over the rest of his career in new contracts, but if it gives him a chance to play for a contender in a city he likes then maybe he does it. That's a far cry from playing for the Calder Cup.
     
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