In the NHL, cap space is at a premium.
With the salary cap remaining relatively stagnant over the last few years, teams have to get creative. Enter the buyout option: Depending on the player and their contract, it can be a useful tool to free up money in the short term.
Ultimately though, buyouts are often a course of action taken by teams that previously made mistakes in budgeting their salary cap — and will now pay the price. For others, it's a chance to give players the opportunity to play elsewhere when completing a trade is too complicated.
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And with the NHL Draft now in the rearview mirror, free agency takes center stage. Here is a list of players that will join free agency via a buyout from their former clubs:
NHL buyouts 2023
Matt Duchene
When the salary cap doesn't move in a positive direction — or any at all — tough decisions need to be made. Matt Duchene is only one year removed from a 40-goal season in Nashville, but when he carries an AAV (average annual value) of $8 million, those dollars can be spent elsewhere.
Longtime general manager David Poile is stepping away, letting Barry Trotz take over in the Music City. Duchene had an uneven tenure with the Predators and now he finds himself on the open market while Nashville continues to turn over its roster. According to CapFriendly, Duchene's cap hit is reduced to $2.56 million on the books for 2023-24.
Kailer Yamamoto
On Thursday, Edmonton dealt Kailer Yamamoto and Klim Kostin to Detroit. While Kostin gets an extended stay in the Motor City, Yamamoto won't be unpacking his bags just yet. The move will save the Red Wings some cap space and the 24-year-old forward will have an opportunity to pick his next team. He was entering the final year of his contract, which came with an AAV of $3.1 million. Instead the Red Wings will take on a cap hit of $433,334 in 2023-24 and $533,334 in 2024-25.
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Blake Wheeler
The former Jets captain joins the list of buyouts and the theme remains the same — saving money. The 36-year-old had just one year left on his contract, but a cap hit of $8.25 million. By letting Wheeler go, the Jets save $5.5 million on their cap sheet. After 13 years with the organization, he was in search of a fresh start — and will now get one. Wheeler was the only player left on the Jets roster who made the move from Atlanta as a member of the Thrashers before relocation.
“It has been my absolute honour and privilege to be a Winnipeg Jet”
— Winnipeg Jets (@NHLJets) June 30, 2023
- Blake Wheeler pic.twitter.com/fL8w2oGw9S
Josh Bailey
The Islanders sent Josh Bailey and a second-round pick to the Blackhawks during Day 2 of the NHL Draft for future considerations in what amounted to be a cap-clearing move. Bailey didn't last very long with Chicago as he was bought out almost immediately following the announcement. The Islanders cleared $5 million off their books and Chicago gained another asset by using its cap space as leverage.
Oliver Ekman-Larsson
The Canucks swung for the fences when they acquired Oliver Ekman-Larsson in 2021. They took on his large salary and lengthy contract — which had six years remaining at a whopping $66 million price tag. While Vancouver took on the defenseman, it also cost the team the ninth overall pick in 2021.
OEL's play has declined and the team couldn't justify a $7.26 million cap hit — with an additional $990,000 retained by the Coyotes in the trade. It saves the Canucks some much-needed cash, but Ekman-Larsson is still set to receive $19.5 million over the next eight years.
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Zack Kassian
Speaking of the Coyotes, they completed a few buyouts of their own. Zack Kassian and Patrik Nemeth are in the same boat when it comes to their situations. The Coyotes are looking for younger talent to have opportunities in the lineup and these two players were taking up valuable space.
Arizona has earned a reputation for leveraging its cap space for assets — or to just be a dumping ground for unwanted NHL contracts. With Kassian being bought out, he can look for an opportunity elsewhere while Arizona can seek out more teams that want to shed salary.
Patrik Nemeth
Just like Kassian, Nemeth departs the desert because of the ability to open space for other players. He was traded to the Coyotes in a cost-cutting move by the Rangers and now has the chance to seek out a new team.
Mike Reilly
With the Bruins in need of cap space just like everyone else, Boston opted to buy out Mike Reilly's contract and free up $2.66 million. Reilly only played in 10 games for the historic Bruins team and spent most of the year with their AHL affiliate — the Providence Bruins.
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What is a buyout in the NHL?
Every year after the Stanley Cup Final concludes and before free agency begins, the NHL opens a "buyout window."
It allows teams to rid themselves of contracts on their roster to open up salary cap space to spend elsewhere. Since the NHL doesn't function like other leagues with massive salary cap hikes, teams utilize buyouts in order to shake up the roster.
But just because a buyout is completed, doesn't mean the team isn't on the hook for some cash. The salary cap hit for a player is one-third of the remaining contract value for players under the age of 26. For players over the age of 26 at the time of the buyout, that value is increased to two-thirds.
Whatever that value is, the cost is then spread out over the course of two times the remaining length of the contract. Signing bonuses are not calculated into the final cap hit.
Here is how Duchene's buyout breaks down, per CapFriendly.
Matt Duchene has 3 years remaining on his contract and therefore the buyout will last 6 years
— CapFriendly (@CapFriendly) June 30, 2023
Buyout Cap Hit #Smashville:
23-24: $2.56M
24-25: $5.56M
25-26: $6.56M
26-27: $1.56M
27-28: $1.56M
28-29: $1.56Mhttps://t.co/v2X0lSTmKj https://t.co/pOtYfCjWIS