The Ryan O'Reilly Contract Extension

[nobody]

Ryan will only make 300k more in salary than his brother Cal when the extension starts.

[Taro T]

What is the strategic benefit to a $1M salary and huge signing bonuses?

It gives him his money at the start of the year rather than over the course of the season. Doesn't make him buyout proof, that would typically happen at the end of the prior season before the bonus is paid.

 

Appears it would help w/ escrow as the escrow withholding is initially calculated at "the commencement of the regular season" (which is presumably in October) and the signing bonus is paid on July 1. Fun fact, not including the 15% of his salary that the Loafs are paying Kessel, they paid the 1st $4MM of this year's salary ptior to the Trade w/ Pittsburgh (per TSN).

 

Even if it didn't get him escrow protection, it helps cash flow as he gets most of his money whenever the 1st check run of the year happens. That, and giving his brother a sweetheart deal is likely what the price was to keep his AAV below $8MM.

[Hoss]

It gives him his money at the start of the year rather than over the course of the season. Doesn't make him buyout proof, that would typically happen at the end of the prior season before the bonus is paid.

 

Appears it would help w/ escrow as the escrow withholding is initially calculated at "the commencement of the regular season" (which is presumably in October) and the signing bonus is paid on July 1. Fun fact, not including the 15% of his salary that the Loafs are paying Kessel, they paid the 1st $4MM of this year's salary ptior to the Trade w/ Pittsburgh (per TSN).

 

Even if it didn't get him escrow protection, it helps cash flow as he gets most of his money whenever the 1st check run of the year happens. That, and giving his brother a sweetheart deal is likely what the price was to keep his AAV below $8MM.

It DOES make him buyout proof, because he will be guaranteed that money on those dates anyways.

 

These are guaranteed bonus. Not a roster bonus, but a signing bonus.

Edited July 3, 2015 by Hoss

[Brawndo]

Not that it will ever be needed, but is there a NTC?

[Hoss]

War on Ice described the buyout situation for him:

 

If bought out the new cap hit would be the AAV - salary + bonus... So it would make his cap hit much higher if he were bought out.

[LaLaLaFontaine]

I love this signing.

 

Tim did go all in and won.

 

How much he has won we seen in seven years.

[Taro T]

It DOES make him buyout proof, because he will be guaranteed that money on those dates anyways.

 

These are guaranteed bonus. Not a roster bonus, but a signing bonus.

No, it just means he gets bought out in June rather than July. (You know, BEFORE the bonus kicks in. :doh:)

 

Also, w/ Pegulabucks in play, it doesn't necessarily mean he doesn't get bought out in the summer anyhow.

 

Neglecting any NTC/NMC he might have, it also makes it easier to trade him in the future as any team tht gets him (assuming it's after July 1) only pays him the prorated portion of what's left of that season's $1MM.

[Hoss]

No, it just means he gets bought out in June rather than July. (You know, BEFORE the bonus kicks in. :doh:)

 

Also, w/ Pegulabucks in play, it doesn't necessarily mean he doesn't get bought out in the summer anyhow.

 

Neglecting any NTC/NMC he might have, it also makes it easier to trade him in the future as any team tht gets him (assuming it's after July 1) only pays him the prorated portion of what's left of that season's $1MM.

See above. The bonus doesn't "kick in." It's guaranteed. It doesn't matter when he's bought out. He gets it. And a buyout would raise his cap hit vs. lowering it. That's why David Clarkson hasn't been bought out.

[IKnowPhysics]

Not sure the implications of the signing bonus, but with ROR on board for 7x7.5, this team is hot.

[bob_sauve28]

Sure hope this isn't the latest reincarnation of over paying for a player like Stafford, Leino, hodson and that defensemen we traded away to Pitt

[Brawndo]

@TheFourthPeriod: I can confirm that Ryan O'Reilly's 7-year, $52.5 million contract with the Sabres includes a full no-movement clause.

 

This confirms full no movement clause

[JJFIVEOH]

My head is spinning............ Is there a lawyer in the house? 

[Hoss]

@TheFourthPeriod: I can confirm that Ryan O'Reilly's 7-year, $52.5 million contract with the Sabres includes a full no-movement clause.

 

This confirms full no movement clause

I never believe TheFourthPeriod. Lavoie, who I do believe, said there is no such clause in the deal. Not even a no-trade clause.

 

 

From Tim Murray:

 

“We’re happy to have Ryan locked up to a long-term deal. It’s not easy to find a player who, at his age, is already established in the league as someone who plays a complete game and makes his teammates better. When we acquired him, we viewed him as someone who could immediately improve our roster but was still young enough to make an impact for several years to come, and this contract reflects that belief.” 

Edited July 3, 2015 by Hoss

[Drunkard]

A full NMC sucks. That's the problem with not having any leverage. If we do end up needing to trade him in a few years he'll have total control which would severely limit the return we'd get back for him.

 

Edit: Hopefully it's a reporting error and there isn't one in place. You'd think the guaranteed bonus structure protecting him from buyouts would be sufficient.

Edited July 3, 2015 by Drunkard

[Robviously]

A full NMC sucks. That's the problem with not having any leverage. If we do end up needing to trade him in a few years he'll have total control which would severely limit the return we'd get back for him.

 

Edit: Hopefully it's a reporting error and there isn't one in place. You'd think the guaranteed bonus structure protecting him from buyouts would be sufficient.

Yes, but if we need to move him in a few years, it'll probably be because we're in cap trouble. And that would mean we're a good team that can't keep everyone. So in that scenario, it wouldn't be critical to max out our return. We'd just want to get fair value while clearing cap room.

[Mustache of God]

After the past 8 years I'm having trouble coming to the fact that we just locked up a true #1 center for the next 8 years and have a "generational" player about to enter the NHL and also Sam Reinhardt. This team is going to be scary sooner than we think. My only hope is that we're able to win a cup before RJ dies and preferably have him call the game (even if that means he steps out of retirement (as long as he's well and able to call the games)).

 

This is the first year ever I want the summer to end so hockey can start. GO SABRES!

[Taro T]

See above. The bonus doesn't "kick in." It's guaranteed. It doesn't matter when he's bought out. He gets it. And a buyout would raise his cap hit vs. lowering it. That's why David Clarkson hasn't been bought out.

The salary is also "guaranteed." But if bought out only 2/3's gets paid. A buyout won't necessarily raise the cap hit- it depends upon how much of the salary/bonuses were already paid vs the AAV charged to the cap to that point.

 

Interesting that a signing bonus might be fully guaranteed. Couldn't find anything in the CBA directly addressing it, though I haven't fully waded through exhibit 34. After thinking about it, it could make sense for the bonus to be truly guaranteed. But it doesn't make sense why more top end guys don't take advantage of such a loophole.

[nucci]

You guys are concerned about buyout, NMC and salary cap? Why not just enjoy the fact this team seems to being built properly....finally. I know it's normal to be pessimistic in Buffalo but try to be excited...it's ok....really

[Weave]

You guys are concerned about buyout, NMC and salary cap? Why not just enjoy the fact this team seems to being built properly....finally. I know it's normal to be pessimistic in Buffalo but try to be excited...it's ok....really

It's the offseason. Until there is actual hockey to discuss, contract minutiae will have to suffice.

[Drunkard]

It's the offseason. Until there is actual hockey to discuss, contract minutiae will have to suffice.

Exactly. This board would also get incredibly boring if everyone took the bright and sunny approach to viewing every decision in the best possible light. Disseting opinion and people justifying their views on various situations are part of what makes this board great.

[BagBoy]

You guys are concerned about buyout, NMC and salary cap? Why not just enjoy the fact this team seems to being built properly....finally. I know it's normal to be pessimistic in Buffalo but try to be excited...it's ok....really

I don't think we're being pessimistic. It's an unprecedented type of contract and we're just trying to wrap our brains around the ramifications of it.

[Hoss]

The salary is also "guaranteed." But if bought out only 2/3's gets paid. A buyout won't necessarily raise the cap hit- it depends upon how much of the salary/bonuses were already paid vs the AAV charged to the cap to that point.

 

Interesting that a signing bonus might be fully guaranteed. Couldn't find anything in the CBA directly addressing it, though I haven't fully waded through exhibit 34. After thinking about it, it could make sense for the bonus to be truly guaranteed. But it doesn't make sense why more top end guys don't take advantage of such a loophole.

I'm going to trust the "experts" on this that the contract is essentially buyout proof and that the cap hit would rise significantly if he's bought out.

http://war-on-ice.com/buyout.html?woiid=o%27reiry91&contractid=x213

If the numbers reported are correct his cap hit rises to $6.83M for the last four years of the deal and then goes to $333K for a long time.

 

And all signing bonuses are guaranteed. They're a bonus for signing the contract. He signed the contract. Locked in.

[IKnowPhysics]

Ryan O'Reilly will be fine.

[beerme1]

ROR on board. Ya!

[K-9]

Using that logic I guess Cody Hodgson was worth $4.25mil/yr. 

Yes. 

 

Value is a dynamic element. 

 

He's certainly worth less to the Predators now. 

 

GO SABRES!!!