Richards clears waivers

Mike Richards has cleared waivers, per reports.

Based on conversations with General Manager Dean Lombardi yesterday, it is expected that Richards will be assigned to AHL-Manchester.

Even though Philadelphia signed Richards to the 12-year, 69-million dollar contract, Los Angeles could be in line for some significant cap recapture penalties down the road because the contract was signed under the previous collective bargaining agreement.

I hope to learn more from hockey operations in the coming days about theoretical hits the Kings’ salary cap could take, but Elliotte Friedman’s most recent 30 Thoughts is a must-read and helps to explain what the Kings could be dealing with. An excerpt:

To this point, Richards played three full seasons in Los Angeles, for a combined salary of $22.6M. This year is a little trickier; he’s been on the Kings’ roster for 47 games, which is 57 per cent of an 82-game season. Richards is making $7M, so he’s already been paid $3.99M. Fifty-seven per cent of his cap hit is $3,277,500.

Add his total earnings so far in Los Angeles and you are just under $26.6M. His total cap hit during that time is slightly above $20.5M. (Numbers rounded for math simpletons like myself.) Therefore, the Kings benefited by approximately $6.1M during the time Richards played for them. This number is not relevant now, but “banked” for later, if necessary.

Let’s say, for arguments’ sake, Arizona picks him up. Richards plays three more seasons and retires in July 2018 to his apparently outstanding summer home, despite two years remaining on his contract. That $6.1M savings would be divided by the two remaining years, meaning the Kings would lose $3.05M in each of 2018-19 and 2019-20. It’s worse if he leaves with just one year to go.

This is a hypothetical – there are lots of hypotheticals in play – so don’t clutch on to the particular figures in this example. But it’s a reminder that the Kings simply aren’t able to wash their hands from the contract; it’s a complicated subject and one that could continue to affect the Kings’ cap space as time evolves. The team will have some additional cap flexibility this season, but it will be $925,000 from the total $5.75M that counted against the Kings’ books.

Even though he cleared waivers, there is still the possibility that Richards could be traded.

More to come throughout the week on this developing story and how it affects Los Angeles’ finances.