The LA Kings and Mike Richards are parting ways after the two sides agreed to a settlement following a fairly ugly contract termination dispute. However, the details of that settlement will surely only raise more eyebrows from Kings fans. Most noteworthy is the fact the Kings will be paying Richards until 2031.
Counting 2015-16, Richards had five years and $22 million left on his contract. The details regarding the payments haven’t been released at the time of this article.
LAK pay out to Mike Richards is in effect until the year 2031.
— Bob McKenzie (@TSNBobMcKenzie) October 9, 2015
If you’re wondering about the salary cap, the Kings will have a cap hit as they continue to pay Richards.
LAK will also face annual cap hit equal to dollars being paid out to annually to Richards and cap hit will last as long payment schedule.
— Bob McKenzie (@TSNBobMcKenzie) October 9, 2015
That cap hit shouldn’t amount to much each season as the pay out is being stretched across 16 years, but it will add an additional wrinkle in salary cap management.
The Kings also have to pay the cap recapture penalty ($1.32 million per year) over the next five years.
Regarding Mike Richards-LAK settlement that's expected to be concluded today: 1. LAK will pay the cap recapture penalty for next 5 years.
— Bob McKenzie (@TSNBobMcKenzie) October 9, 2015
The Kings commented on the agreement:
The Los Angeles Kings have reached an agreement with Mike Richards to resolve the grievance filed in relation to the termination of his NHL Standard Players Contract. The terms are agreeable to all parties. We will not be commenting further on the terms.
Richards will now be an unrestricted free agent. Is he now hockey’s Bobby Bonilla?
