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Mutual Contract Termination between an NHL team and a disgruntled players has become much more common in the NHL recently; it was used about 40 times in 2018-19. When the team no longer has any use for a player, and the player thinks he could get more money in Europe or elsewhere than he can with his current NHL contract (or simply wishes to leave for other reasons), the two parties can agree to end their contract with no penalty to the team.
In FHM when playing as an NHL team, you can make this type of offer when all of the following are true:
- the player's happiness must be Unhappy or Very Unhappy
- the player is not on your active roster or injury list
- the player is on the active roster of one of your farm teams
- the player has a two-way contract (this isn't always true in real life, but almost all mutual terminations are 2-way contracts and it'd be too easy to exploit if we allow humans to dump big one-way contracts this way)
- the player has not rejected a previous mutual termination offer this season
If a player qualifies, you'll get the mutual termination option on his right-click and Action menus. You'll get an immediate response from him, but he may choose against accepting the termination (the exact chances of this happening are dependent on a variety of factors - his personal traits, nationality, current salary, etc.)
Once terminated, the player immediately becomes an unrestricted free agent. His NHL rights are removed and the contract disappears, with no cap penalty to the team.
(Note: technically, the player must clear waivers before being terminated like this. But in practice, no team has ever made a waiver claim on a player who was waived for the purposes of this kind of termination, even when the player would be likely to be claimed if he had been on regular waivers. When a player wants to leave like this, the other teams leave him alone. So we decided not to include the additional complication of the waiver step. If another team is really interested in the player, they can sign him when he becomes a UFA.)