Defray redefines definition of definition of ‘defray’

Introduction

Defray has officially changed the definition of “defray” from an “amount to pay” to a “amount in consideration for goods or services”.

The definition of a “deferred payment” now also includes an amount that is not in cash or is not part of the deferred payment, such as a gift or donation.

The NHLPA announced the new definition during the 2017-18 season, and added that the new rule is “the only definition of deferred payment that will apply to all future NHL contracts, and it will be applied to players and their families”.

“The new definition is designed to simplify the application of deferred payments, and allow players to avoid the additional financial obligations of tax and withholding obligations,” the league said.

“This will also improve the integrity of the salary cap by eliminating the tax-exempt status of deferred compensation and allowing players to defer payment on future contracts.”

The NHL says that deferred payments of up to $3.2 million and up to 50 per cent of the cap in 2017-2018 will be subject to a cap recapture provision that allows for a player to “recover” some of the amount of the refund that he or she paid into the deferred compensation account.

The new deferral provision will also apply to deferred compensation for future years.

The league also announced that the team’s annual deferred payment of $1 million for 2017-20 will be eliminated and replaced with a $3 million deferred payment.

“We’re delighted to announce that this year’s deferred payment for the 2017 NHL season will be $1,000,000 for players, $1.5 million for teams and $2.5 for owners,” said NHL Deputy Commissioner Bill Daly.

“The amount of $2,5 million will be distributed to all players on a pro-rated basis, but not players on their own teams.”

Players will be able to defer up to 40 per cent (of the cap) of their cap, as well as up to 75 per cent for the first year and 75 per per cent thereafter.

“To be eligible for a $1 Million deferred payment this year, players must have a minimum salary of $3,000 per week and be eligible to be on the NHL payroll for the season starting Feb. 1.”

If a player fails to meet these requirements for the year, he or we will determine whether the player is ineligible to receive the deferred amount.

“Players who have previously deferred $3m of their 2017-2020 cap and received a $500,000 deferred payment will not have their 2017 salary reduced.”

In 2018-19, teams and owners will be permitted to receive $1-million deferred payments based on the number of points scored, goals scored and total goals scored by a player.

In 2019-20, teams will be limited to a $2-million annual deferred compensation, while in 2020-21 teams will have the option of having a $4-million yearly deferred compensation.

“For example, if a team had five players in the league who had played in the playoffs and scored 50 goals, they would be eligible in 2019-2020 to receive a $100,000 annual deferred payments.”

Once a player has played in a Stanley Cup Final and earned $500 million, they will be eligible under the new deferred compensation rules.

“The new deferred payment rule also applies to players who are on their respective teams’ NHL roster and are not on the active roster.”

An active roster player who is on an NHL roster who is not on a team’s active roster and who is in the process of becoming a free agent will not be eligible as a deferred compensation payment for a year.

If a player is on a roster that is in active session and becomes a free-agent this season, he will not receive a deferred payment.

“Players on the restricted list will also not be entitled to a deferred payout, and players on the physically unable to perform list will not automatically receive deferred compensation if they are not a free agents.

A new deferred payments rule applies to the NHL’s All-Star Game, the 2017 Honda NHL All-Stars game, and the 2019 All-American Game.

Players on teams with less than a $200,000 cap, or teams with fewer than 40 players, will not get a deferred payments payment.

Players who were on the roster at the end of last season will not qualify.

The salary cap for the 2018-2019 season will remain at $71 million.

The 2018-2018 cap will be increased by $5 million, to $70 million, for the 2019-2018 season.

The 2019-2019 salary cap will remain $68 million.

Players are not eligible to receive deferred payments until Feb. 8, 2021.

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