Buying Out Wade Redden

With the Rangers cap situation, a lot of talk has been tossed around about buying out troubled defenseman Wade Redden. His cap hit is currently $6.5 million, and is a real road block for trying to re-tool this team. As part of building the ‘Understand the Cap’ page, I calculated what it would cost to buyout Wade Redden:

As of the end of the 2008-2009 season, Wade has 5 years and $31 million remaining on his contract. The buyout amount is ($31 million * 2/3 = $20.67 million). Twice the remaining years on his contract is (5 years * 2 = 10 years). Now, spread the buyout amount evenly over the years ($20.67/10 = $2.067 million).

So there you have it, if the Rangers were to buyout Wade Redden, they would have a cap hit of $2.067 million over the next 10 seasons.

Overall, it saves the Rangers $4.5 million for the next five years, and then costs the Rangers $2.067 million for the next five. Well worth it I think.

Note that the buyout amount is the remaining dollar amount on the contract, not the cap hit.

7 Responses to “Buying Out Wade Redden”

  1. Stas says:

    absolutely worth it. this guy is an total disaster.

  2. Dave says:

    Definitely. Especially since in 5 years the cap will be even higher, probably around the $65 million range.

  3. Yankee1010 says:

    I think it is definitely worth it, but there is no way that Sather will admit his mistake so soon. Of course, he has Dolan wrapped around his finger so much that he might be able to do it and still blame someone else for it.

    I think they’ll probably give Redden at least one more year before they consider it.

  4. Dave says:

    I don’t even think it will be considered, Sather is too stubborn and rarely admits mistakes. I’m a bit of a Sather hater.

    I’m all for buying out Redden, but it won’t happen. I just wanted to put some numbers behind the thought process. A lot of people are calling for the buyout, without knowing the numbers behind it.

    • Yankee1010 says:

      Yeah, I just can’t imagine Sather even admitting a mistake when ordering breakfast, so I can’t imagine him admitting one with the awful Redden contract.

      Ultimately, I think it’s going to take a new GM to come in here and clean up. Everybody in the organization has been brought in by Sather, so he’s going to be reluctant to admit any mistakes. Longevity isn’t a problem when an organization is successful. I would not characterize the Sather Rangers as successful.

      I would also suggest that he not be allowed to sign anybody on July 1st. The last thing he needs to do is further hamstring the team’s future with another albatross contract.

      • Yankee1010 says:

        Just to clarify, by a July 1st signing, I meant his typical huge contract on a guy past his prime.

        • Dave says:

          His first priority is to resign Callahan. Then Dubinsky. Then Betts. Then one of Zherdev/Antropov.

          Don’t forget about the future considerations from Nashville for Jessiman. Maybe Alexander Radulov can be considered?