Tuesday, October 07, 2008

The Hershey Savings and Loan


Worried about the stock market these days? Concerned you can't get a loan? Well, there is one investment institution that is looking "bullish." Or is that "bearish?"

We start with Tarik El-Bashir's article in this morning's Washington Post, chronicling the fate of Karl Alzner, Chris Bourque, and Quintin Laing, all of whom (assuming Laing clears waivers) will be headed up Route 15 to Hershey to start the season tomorrow night in Wilkes-Barre to face the Baby (infantile, childish) Penguins.

But here is what caught our eye in the report...
Because of a quirk in the collective bargaining agreement, there is no 7.5 percent cushion for bonuses this season, so all of Alzner's $1.675 million in compensation (his base salary plus performance incentives) would have counted against the Capitals' salary cap figure. By sending Alzner, 20, to the minors, the Capitals will save one day of his cap hit for every 24 hours he is in Hershey, thus allowing the team to build space under the salary cap should the team want to recall him or make an acquisition at the trade deadline.
So, the Caps save about $9,000 a day in salary cap hit by sending Alzner to Hershey. And, Chris Bourque (not to mention a few others) will be spending time at Hershey, honing his game, available for a loan on E-Z terms, so to speak, should the need arise.

At a time when our 401(k)'s are in the dumper, when we're finding loans at decent terms harder and harder to find, it's nice to know that there is still one place nearby that has the potential to pay nice dividends.

4 comments:

FAUX RUMORS said...

1) Caps fans will probably be fine/understanding of this unless/until it cost them wins.
2) As long as the top 6 defense doesn't look porous, or a guy like Fleischmann contributes offensively no ones gonna question why Alzner/Bourque aren't with the big club.

this space for rent said...

faux rumors has the right of it at least in my case. Am I happy with Alzner and Bourque being sent down? No, but I understand why they did it. The minute defense starts looking like they did Sunday night, though, I'm going to be looking for some waivers and some callups.

Doug said...

Hmm. GMGM said the salary cap was not a factor in the decision making to send Alzner to the AHL for seasoning. GMGM is paid to be coy, and who knows what the real truth of the matter is.....

In any event, Alzner will do well with some Hershey time.

exwhaler said...

McPhee also said that Alzner wouldn't be on the roster unless he was capable of being in the top 4. So, he had to clearly outplay Green, Morrisonn, Poti, and Schultz, not Jurcina and Erskine.