As the Seattle Kraken wrapped up their final game of a disappointing 2024-25 season, the focus now turns to the offseason. Team president and CEO Tod Leiweke hinted at an “eventful” summer during a recent season ticket holder event. One of many looming questions surrounding next season’s team is how it can improve. There has been plenty of speculation in the market that general manager Ron Francis will execute buyouts—something he hasn’t yet done with Seattle. So how would this look if he did decide to utilize this option?
Philipp Grubauer and Andre Burakovsky have both surfaced in that speculation, so we will use their contracts to understand the ramifications. To be clear, this article is not advocating for either to lose their jobs. Instead, we aim to explain how NHL buyouts work, the math behind them, and what alternatives exist before diving into whether a buyout makes sense for either player.
How the NHL buyout process works
Timing
Buyouts are only allowed during a specific window: starting June 15 or 48 hours after the Stanley Cup Final ends (whichever is later) and ending on June 30. Over the last five seasons, the Cup has been awarded between June 13 and June 26.
Waivers
Before a buyout can occur, the player must be placed on unconditional waivers. According to CBA Article 13.23:
“Unconditional Waivers shall be required for the purpose of Buy-Out or Mutual Termination of a Player’s contract.”
Waivers last 24 hours, allowing other NHL teams to claim the player. While no buyout-targeted player has ever been claimed, the opportunity technically exists. Players with no-movement clauses cannot be waived and thus cannot be bought out unless they waive that clause.
Age and term
The amount a team owes a player in a buyout depends on the player’s age at the time of the buyout. Here’s how it breaks down:
- 26 and older: two-thirds of remaining salary, smoothed evenly over twice the remaining contract term
- 25 and younger: one-third of remaining salary, smoothed evenly over twice the remaining contract term
Buyout formula for annual cap hit
To calculate the actual cap hit the team incurs during a buyout, the following formula is used:
Cap Hit = AAV – (Annual Salary – Buyout Payment)
“Annual salary” means the real dollars owed to the player, whereas the AAV is the player’s cap hit.
Buyout math: A Grubauer case study
Here’s a breakdown using Philipp Grubauer’s contract as an example:
- 2025-26 AAV: $5.9M | Salary: $5.6M
- 2026-27 AAV: $5.9M | Salary: $4.5M
- Total Salary owed: $10.1M
The Average Annual Value (AAV) is calculated by averaging the total value of the contract over its full term. Actual salary reflects what the player is paid each season and can vary year to year. Understanding this difference is essential when calculating the impact of a buyout.
At 33 years old, Grubauer would be paid two-thirds of his remaining $10.1 million salary—$6.73 million—smoothed evenly over four years, which is twice the remaining term of his contract, so $1.68 million per season.
While the yearly cap hit is reduced, the penalty lingers for twice the remaining contract term—and in this case, the team must still acquire a replacement goaltender, adding further cost to the equation.
Alternatives to a buyout
1. Burying in the AHL
A team can waive and assign a player to the AHL. Due to the Wade Redden rule, only $1.15M is exempt from the salary cap. The rest remains on the books:
- 2025-26 – $4.75M cap hit, $1.15M savings
- 2026-27 – $4.75M cap hit, $1.15M savings
Grubauer would remain available as an injury replacement if buried in the AHL, providing organizational depth. This setup gives the Kraken a safety net in case of injuries at the NHL level. Seattle utilized a similar structure with Chris Driedger, who played the AHL after recovering from injury but still under contract and capable of stepping in if needed. A benefit to this approach is that the cap hit lasts only two years, rather than four under a buyout, even though the annual hit is higher. This approach would require the Kraken to acquire another backup goaltender, adding to the overall cost but preserving veteran depth within the organization.
2. Play out the contract
The Kraken could keep Grubauer through 2026-27 at the full $5.9M cap hit per season. While this is the most cost-effective approach on paper, it hinges on a return to form from a goaltender who has yet to have a season with higher than a .900 save percentage with the Kraken. To his credit, Grubauer showed signs of improvement since a stint in the AHL, going 3-2 with a .915 save percentage over his final five appearances. Keeping him avoids the need to acquire a new backup immediately and allows the Kraken to reassess a buyout after next season if needed. However, if he struggles again, finding a capable replacement midseason could be more difficult than securing one in the offseason.
3. Mutual termination
While rare, mutual terminations have occurred. Brandon Saad terminated his contract with the St. Louis Blues, walking away from $5.43 million to sign a one-year, $1.5 million deal with the Vegas Golden Knights. The Kraken have also used this approach, mutually terminating Michal Kempny’s contract after he failed to make the team out of training camp and opted to return to Europe. These examples are uncommon and situational.
Grubauer on the other hand is due $10.1 million, so it is hard to see anybody walking away from that kind of money.
What to do with Grubauer?
Grubauer is currently the backup to Joey Daccord. If bought out, the Kraken would need a replacement. Of the 13 goalies set to become unrestricted free agents, only four posted a save percentage above .900 last season. The average AAV among this group is approximately $2.31 million; for simplicity, we’ll estimate $2.5 million for a NHL backup goaltender and use that figure when comparing the financial impact of a buyout, burying the contract, or retaining Grubauer.
Comparision of options
Keeping Grubauer is the cheapest option, but continuing with a sub-.900 goaltender may not help Seattle improve. Burying his cap hit provides flexibility and coverage but carries a higher annual cap hit. If the Kraken can find a reliable backup in the $1–$1.5 million range, burying the contract could become a more attractive option. However, the most practical path appears to be a buyout, which would provide some savings and effectively end the Grubauer era in Seattle.
A second case study: Burakovsky
Burakovsky has underperformed, but his recent chemistry with Shane Wright and Jared McCann complicates matters. Here’s his buyout math:
Burakovsky finished with 37 points and had 15 in his final 20 games. Finding a similarly productive replacement could cost more than his current $5.5 million AAV.
Only three UFA wingers under the age of 30 topped 37 points: Mitch Marner, Nikolaj Ehlers, and Brock Boeser—all likely to command higher salaries. Jani Nyman has already emerged as a strong internal option and has positioned himself for a spot on the roster. However, a top-nine forward position would need to open up for him to secure regular ice time. While his 41-point pace over 12 games is encouraging, it isn’t a significant upgrade over Burakovsky’s 2024-25 production. The real risk is that if Nyman doesn’t hit the ground running, the Kraken could find themselves in another season without meaningful offensive improvement.
Burakovsky could remain with the team as an insurance policy. He offers roster stability and provides dependable depth in case of injuries or if other players, like Nyman, don’t meet expectations.
With Burakovsky’s 62-point pace near the end of the season, it’s possible he could generate trade interest. This is where a buyout becomes a coin flip. The Kraken had only one 60-point player—Jared McCann—during the 2024-25 season. Losing a scoring forward like Burakovsky, especially in an area the team is actively trying to improve, could set the offense back unless a clear upgrade is secured.
Final thoughts
Buyouts offer short-term savings at the cost of long-term cap hits. The added expense of a replacement player often cancels out the savings. Still, they free up roster spots and may be necessary if Seattle wants to retool.
With the salary cap rising to $95.5 million, the Kraken front office has options. Now that you know how buyouts work, what would you do? Would you buy out, bury, or hold onto players like Grubauer and Burakovsky?
Blaiz Grubic
Blaiz Grubic is a contributor at Sound Of Hockey. A passionate hockey fan and player for over 30 years, Blaiz grew up in the Pacific Northwest and is an alumni of Washington State University (Go Cougs!). When he’s not playing, watching, or writing about hockey, he enjoys quality time with his wife and daughter or getting out on a golf course for a quick round. Follow @blaizg on BlueSky or X.
Burky is a puzzle. He has the ability to play good hockey, but can’t seem to do it consistently. He can look like the reason the team wins a game, and then completely fall apart the next game. It’s behavior you might expect from a college player or junior in the CHL, but not someone signed to decent term at the NHL level. Very bizarre.
@ Seattle G Remember in the beginning of the season people were just waiting for him to ‘get out of his head’ and score? Then that passed but he just couldn’t seem to get on any scoring streak. He reminds me of a middle school basketball player – drives to the net from half court, only to be stripped of the ball under the basket. I wouldn’t be too sad to see him leave if there was a big positive for Seattle.
The players really love Burky though.
They need to move out a couple of vet forwards for Nyman and Catton. Running back the same top 9 is pointless. If Burakovsky has any value RF should be able to move him with some retention.
Curious the mention of roster stability: this team finished 20 points out of a playoff spot. That should alleviate any concerns about stability.
Grubauer has no business being on this team any longer, he’s been mostly dreadful for years. Wherever he ends up, it’s a sign that team is tanking for McKenna
Not all of the problems with gru is on him alone. The skaters left him out to dry a ton. The skaters also left daccord out to dry too. So the idea of which team he ends up is suddenly gonna be a bottom their team in the NHL is a ridicilous and unfair to gru himself. Hockey is a team sport, they win as a team and lose as a team. IF the skaters play bad, turn over the puck, leave players with free unopposed shots right in front of the net a lot, what exactly is the goalie suppose to do? And if the team can’t fix that ridiculous defense for year 5, it doesn’t matter who the back up to daccord is. We’ll just be in the same spot in the standings as we just finished at for this pasted season.
While you’re right, I think it’s both. The defense took a huge step back this year, but also Grubauer was arguably the worst goalie in the league.
The same team that had Joey finish as a top 10 goalie sunk Grubauer? There’s an almost perfect A/B comparison here. All you need from your G2 is a .500 record but Grubauer has been mostly dreadful for his 4 year stint; may be a nice guy but time to go.
Even if they were to make no adds, the top-nine would not be the same one they started this season with. The team started playing a lot better once it picked up Kakko and elevated Nyman. Nyman definitely needs some polish, but him making the big club right out the gate next year would change quite a lot, as will Kakko continuing to play beside Beniers. Ottavainen potentially joining Oleksiak to make a proper “big guy” (for you) pairing is promising as well. The team does need to make some additions, but I do not think that they need to be too desperate.
Agree, the forward group isn’t the main problem imo. The defense regressed big time this season. They needed Dunn to continue being a #1 but instead he became an unreliable turnover machine. Both Oleksiak and Larsson lost a step or two. Montour was awesome, but he never had a stout defensive partner to cover for his aggression on offense. Ryker was up and down, as expected for a still developing player. All this combined with an awful backup goalie and an average offense meant that they couldn’t outscore their own mistakes most nights.
I think a decent amount of blame can also be placed on the coaching staff. Their special teams got worse. Though a bad PP could at least be partly due to lack of high-end talent, that shouldn’t be the case for the PK, which was overly passive and predictable. There seemed to be way more defensive lapses in coverage in all situations. And then there’s the consistency aspect, and the Kraken being the second team since 2000 (?) to not get even a single point on the second game of back-to-backs, and those games didn’t even seem remotely competitive most of the time.
They battled and came back a lot more than last season, but they also ended up with 5 fewer standings points so I wouldn’t really count that as progress.
Overall a very disappointing season. They should stay the course, make upgrades on the fringes, and wait for the young core to develop. We’re looking at another two seasons of bad hockey, then hopefully a sustainable run of good hockey. Be patient RF!
With the defense, there’s a definite need for an agile defensively-focused player to be a complement to Montour. Oleksiak doesn’t have that agility and Evans is too leaky defensively right now.
I’d like to see them look for a player coming out of Europe or the US NTDP. The CHL is too offensively oriented.
With special teams, Olczyk went on a(nother) rant about special teams during either the Vegas or Utah game. He said that the PP/PK were too rigid in sticking to formula and not letting the players, as professionals playing at the highest level, break formation and capitalize on the situation as it presented itself in the ice. He used an analogy of the quarterback who gets all the plays relayed from the sideline vs having the power to call an audible. The other place this season I saw and noted that level of conformity was PWHL. I don’t think coincidence. And another special teams coach needs to thank Mr “needs to learn to play the PK” for the final game short handed goal that moved Seattle from tied for 31st to tied for 30th on shorties…
Eddie O is on to something there, me thinks. Also, as you allude to, at the very least Bob Woods needs to be canned, if not the entire coaching staff. It’s classic old school coaching — blame the young players for your own ineptitude. Can’t have that with a team that’ll be getting much younger over the next few years.
I feel a little pissed at both of these players starting to play decent hockey AFTER our games became meaningless. I would not count on a continuation of recent play as there history has been nothing but disappointments.
Parting way with Grubauer is not the least expensive route but maybe it’s necessary to put him in the rear view mirror and just move forward.
I really wonder how we can improve without getting rid off Burky, all the talk is upgrading the kraken in the offseason and the very likely additions of Nyman and Catton. How does this happen without replacing Burky with an upgrade? We’re nor should we be putting either of them on the 4th line, changes need to happen further up the lineup.
I think Grubauer improved after the break because he got reps in CV. Unless Joey gets hurt or the wheels fall off, that’s not going to happen next year. RF could try and trade Gru but the only way that works is if he gets a 3rd team to take salary or he takes a bad contract back. I don’t think burying Gru in CV works because Kokko needs the reps. If the cap keeps rising, $1.7M seems a reasonable hit in 3 years.
Stephens, Kartye, and even Tolvenen are placers that we could upgrade on. Although Tolvenen is Rons fav player his production seems to fall off the cliff after the second half of the season. Wee need a team where there is no difference between the 2nd, 3rd and 4th lines to even have a chance to become a top seeded team. We do not have that balance yet and peoples favs may have to go in ordwer to improve out overall status. Sorry guys. This is a business.
Stephens is already back in the AHL and has been for awhile. Kartye is a RFA, so we will see if the team retain/resigns him or not.
I think you are meaning just opening up roster spots to improve, but neither of these players would get bought out as they make under 1.15M and would just get waived and sent to the AHL.
Oh he was talking about Stephens that we called up while gourde was hurt. okay my mistake.
I actually think you are correct and he was meaning Stephenson. Stephens did well for a 4th line role though.
@ Blaiz – what is Berkeley Catton’s path to the AHL?
Unless there’s a rule change, the options for next season are limited. Catton is in the same situation Shane Wright was in—he either makes the Kraken roster out of training camp or returns to the WHL. You might remember Wright was sent to the AHL on a conditioning loan, which is allowed for up to five games or 14 days. That same option could be available for Catton.
There is a bit of a wrinkle with recent changes allowing CHL players to play in the NCAA, which has created a gray area. NCAA players can join the AHL once they formally leave college. In theory, a CHL player could avoid signing an entry-level contract (ELC), transfer to the NCAA, play a game, drop out, then sign an ELC and become AHL-eligible. However, since Catton has already signed his ELC, he’s no longer eligible for the NCAA route and cannot play in the AHL under current rules.
Catton misses the AHL age cutoff by just two weeks—players must turn 20 by Jan. 1, and he turns 20 on Jan. 14. It’s possible the Kraken could apply for an exception, but that’s considered unlikely to be granted.
Ron Francis has indicated that Catton will get some time with the Kraken next season. Most likely, that means a nine-game NHL audition before he’s returned to the WHL—unless, of course, he lights it up and forces their hand.
Seattle is not getting rid of Stephenson, He actually leads the team in points for a reason. Get some good or better wingers to line him with and he’ll get more points goals or assists. He did exactly the job that we brought him to be.
Tolvanen set a career high in goals this year with 23, 15 of those came after the second half of the season. 20 of his 35 points were in the second half playing a 2nd/3rd line role. That’s good value for a 3.5 m AAV.
I cant believe anyone still believes Grubauer shouldn’t be bought out. He should have been bought out at the end of last season. 90% of his starts he lets in at least one stinker of a goal, usually at a key time which kills momentum – the 2 goals in the St Louis game are a perfect example.
Burying him in the AHL is just taking a development spot away from a hopefully future NHL goalie. Additionally, with so much experience, he’d be included in the highest tier of players and take up one of those restricted roster spots.
A couple of other options that I didn’t see mentioned for Burakovsky would be a trade with retention or a trade involving a team that is going to have problems meeting the salary floor. Either find a team that needs to make the floor and trade him outright or trade him to anyone else and use one of the below-floor teams to act as a third-party broker to take on some of his salary in exchange for a draft pick or a prospect. Or Seattle can trade him and just retain salary themselves. I don’t think any team not needing to meet the floor would take his full contract, but I think there might be takers at half the value…a bit more of a hit than a buyout short term, but savings long term vs a buyout at 2/3 and he’d clear the books faster.
Tolvanen is a bargain for what he gives the team with only one year in his current contract, so he doesn’t make sense as a dump.
I still believe if Seattle makes any kind of big-time trade it’s going to involve Vince Dunn and/or Shane Wright. Especially if the coaching staff stays.
The Veteran rule in the AHL does not apply to goaltenders, so Gru would not take a spot. It might steal some time from Kokko, but I think if they send Gru there it is not to be the starting goalie.
I did mention a trade would be possible, but did not go into specifics of salary retention, but that could help. Prior to the trade deadline Burky had no market for a trade even with retention. It is possible with the way he finished the season a trade market might be there, but it is a small sample size.
I think the big issue with Seattle is the lack of a legit first line . As much as I like beniers, kakko, and Shwartz, they are a 2nd line on a contender. RF is no idiot, I believe he recognizes this. That’s why he keeps drafting centers with our high picks hoping one of them hits. Wright might, catton might, but next year? I wouldn’t put money on it.
People say we need to grab some people in free agency… who is going to be on the market that will want to come to Seattle and will make a big difference? Marner? Unlikely. Beoser and Ehlers are marginal upgrades that will cost a ton… If they even what to come here.
Desperately reaching in free agency just to show the fan base you are trying to make moves will only land more Stephenson types. I would so much rather see the team stay the course, continue to develop through the draft, even if it means another year or two or terrible performance. Eventually this team will come together. Our prospects are only now starting to get to the point where they can compete for roster spots.
If it were me, I would buy out Grub, get an ok backup in free agency, then literally nothing else.
1000% agree with all of this, but unfortunately, it seems like ownership is pressuring RF (again) to be more aggressive. I really, really hope they don’t trade picks/prospects just to upgrade to a bubble team. This team just isn’t ready to take that leap imo, just like it wasn’t last year, as much as I loved watching Montour. Wait a year or two, THEN go nuts and buy/trade for all the players when the young core has fully emerged.
The Beniers line was the second line here. The Stephenson line was the first line by ice time, and it took the toughest draws. If anything, the team should be concerned with finding a younger right wing to play with Stephenson. I love Eberle, but at his age he doesn’t need to be taking all those big minutes. Like you said, though, that is not going to happen in free agency. There is just nobody available who would even move the needle. Even Marner would only represent a marginal improvement, and he would come with an absolutely brutal albatross of a contract. Instead, maybe they will find a team that needs to clear some quick cap space. Good guys seem to come available that way more often than they hit free agency.
5-on-5, Matty Beniers played 130 minutes more than Stephenson; Stephenson played 100 minutes more on the PK. They were roughly even on PP and in total minutes. However, in terms of the traditional definition of first line/second line that is based on 5 on 5, Beniers centered the “first” line.
They should avoid letting the GM that signed these deals, not to mention the other ones that aren’t good, be the one spending the “savings” in a bad FA class at all costs. There’s a high likelihood this offseason sets the team back even further. Just send them to the AHL and move on from this failed GM after the season, although I have little faith in Leiweke to make a good hire at this point
Please send Oleyksiak packing!!!
There were 20 goalies who started more than 15 games but less than 30. Of those only Aleksei Kolosov had a number worse than Grubauer’s .875 and no one had a worse goals saved above expected – overall or per 60. Gru appeared in 26 NHL games.
I’m not buying the “didn’t get regular starts” excuse for one second. There were plenty of guys who didn’t get “regular starts” and still managed to not be abysmal.
I imagine that the only reason they’d buy out Gru is if they can bring Vyazovoi over from Russia for next season.
I don’t understand, please explain…..
The only reason they would buy or Gru is vyazovoi…… ?
Vyazovoi is a goalie playing in the KHL that the Kraken have the NHL rights to. It would be a gamble (he is in the backup role in the KHL, but put up a .938 save percentage over 28 games), but if all of the options available in FA are sub .900 goalies NHL goalies and they are still dead set on buying Gru out of his contract, I say take the gamble.
So unless vyazovoi plays there is no way we buy out Gru…. Got it thanks. Hear I thought there were many backup options that could be available for under 2M, thanks for clearing that up.