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Mike Richards and LA Kings near settlement for terminated contract: Report

Mike Richards and LA Kings near settlement for terminated contract: Report

There could be a resolution in the Mike Richards contract termination situation with the Los Angeles Kings.

According to TSN’s Bob McKenzie, Richards’ representatives and the Kings are working on a settlement in regards to Los Angeles’ decision to terminate the center’s contract for a "material breach" on June 29.

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According to TMZ Richards was stopped while crossing the US/Canada border on June 17 and questioned about Oxycodone pills.

Later in the summer, Richards, 30, was charged by the Manitoba RCMP with possession of a controlled substance while entering Canada.

The NHLPA had filed a grievance to contest the Kings' termination, asking for the disagreement to go to an arbitrator. But that carries issues for both Richards and the Kings. Again, according to McKenzie:

A negotiated settlement makes sense for both parties. If it goes to arbitration, the arbitrator would rule in favor of one party or the other. So the Kings would either be free and clear of Richards' contract or they would be fully on the hook for the balance of the deal. Likewise, Richards would end up with either nothing or everything he's owed. So there's considerable risk for both sides in an arbitration. 

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Per the story, there is no word on if the Kings would face some level of salary cap penalty. Richards had five years remaining on the contract, equating to a $5.75 million salary cap hit. After the Kings announced they had terminated Richards’ deal, they were on the hook for $1.32 million per-year over the next five years as far as salary cap hit. It's unclear if that would change with a settlement.

Los Angeles has just over $3 million of salary cap space according to General Fanager.

Richards had seen a major drop-off in production since the Kings acquired him from the Philadelphia Flyers in the summer of 2011. His best season came in 2011-12 when he had 44 points in 74 games played, much lower than career highs of 80 points and 31 goals he notched with the Flyers in separate seasons.

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Josh Cooper is an editor for Puck Daddy on Yahoo Sports. Have a tip? Email him at puckdaddyblog@yahoo.com or follow him on Twitter!

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