Canucks: What would a Loui Eriksson buyout actually look like?

It’s shaping up to be one of the most important offseasons in recent history for the Vancouver Canucks.

So far, the team has been able to finalize contract extensions for head coach Travis Green and goaltending coach Ian Clark, as well as bring in Henrik and Daniel Sedin to their Hockey Operations department. They were also able to sign promising prospect Vasily Podkolzin to an entry-level contract, and even managed to relocate their AHL affiliate much closer to home.

Of course, they’ll still need to sign RFA stars Elias Pettersson and Quinn Hughes but, as we inch closer to free agency, it’s hard for fans to not help but think that General Manager Jim Benning will wait until then to make his biggest moves.

During the team’s year-end media availability, Benning spoke of how aggressive he’d like to be in the offseason, stating that “buyouts are going to be part of our strategy this summer to save cap space”.

He even made a similar remark during his radio interview on Sportsnet 650’s morning show with Jason Brough and Mike Halford on Thursday morning.

And let’s face it. When you hear the word “buyout”, you can’t help but think of Loui Eriksson.

It’s safe to say that Eriksson’s contract has been a disaster from the beginning. The former 2003 second round pick never eclipsed the 20-point mark during his time in Vancouver, and no longer has the footspeed or defensive capabilities to crack an NHL roster. Eriksson has one more year remaining on his six-year deal, and only suited up for seven games this past season. During those games, he recorded zero goals, one assist and a minus-three rating.

There’s no doubt that he’s far removed from his successful stints in Dallas and Boston, leading most fans to wonder about the possibility of a buyout.

But what exactly would that look like for the 2021-22 season?

As previously mentioned, Eriksson is set to enter the final year of his 6-year, $36 million deal that he signed in July 2016. It was a front-loaded deal built on large signing bonuses at the beginning, with Eriksson receiving $28 million in the first four years. Eriksson will still account for a $6 million cap hit this upcoming season but, in reality, he is only set to make $4 million next year – $1 million in signing bonuses, and $3 million in actual base salary.

Based on his age, Vancouver would be responsible for two-thirds of Eriksson’s remaining average annual contract value over the next two years, which would put the initial buyout cap hit at $4 million. Given the Canucks’ current financial situation, as well as the expected flat cap, every dollar counts for this organization right now, so it could definitely be an enticing option for ownership. However, it’s important to consider all of the repercussions of this possible decision.

The Canucks would be able to shave $2 million off the cap this upcoming season, but would also be dinged with a $1 million cost for the 2022-23 campaign, putting their real dollar net savings to just $1 million over the next two years. Not exactly eye-popping numbers when you’re trying to build a roster under the flat cap.

The team could also consider the other alternative of burying him in the minors.

According to CapFriendly, the cap hit relief of a buried contract would be “the minimum salary of the respective season + $375,000”. Currently, the league salary minimum for the 2021-22 season is $750,000, which means that the Canucks would be saving $1.125 million if they demoted Eriksson to the AHL. It would be a step up from the $1.075 million that they would’ve saved this year had they sent him to Utica, but it’s also only a difference of $875,000 between the buyout and “below-the-line” bury options.

No matter what the Canucks end up deciding to do with Eriksson’s contract next season, it’s in the organization’s best interest to simply walk away from the player at this point in his career. Eriksson no longer serves a purpose anywhere on this team’s roster, and would be better off in Abbotsford for the next year if he wants to continue to play hockey, granted Benning doesn’t buy him out for the remainder of his contract.

The buyout period will officially start two days after the completion of the Stanley Cup Final, which is slated to go as far as July 11th if the series requires a game seven. Eriksson will first need to clear unconditional waivers and not be picked up by another team before he can enter the buyout period.

Eriksson also has a modified no-movement clause for his final year of the deal, meaning that he can submit a list of 15 teams that he can reject trades to, if the situation were to occur.

What do you think the organization should do with Eriksson’s last year in Vancouver? Let us know in the comments!