Schultz was a primary candidate for a buyout this summer given his desire to be traded. Due to diminished playing time with the Capitals over the past few seasons, Schultz requested a trade, which general manager George McPhee was willing to accommodate. However, McPhee believed it would be difficult to find a willing suitor given that Schultz hadn't played much recently. This made the buyout a viable course of action.
The 27-year-old defenseman is entering the final season of a four-year, $11 million contract that carries an annual average value of $2.75 million against the salary cap. Washington will pay him $1 million over the next two seasons and Schultz will be free to become an unrestricted free agent come July 5.
In addition, the New York Islanders also placed goaltender Rick DiPietro on unconditional waivers with the intent of giving him a compliance buyout. This decision was reported on Monday night and formally executed on Tuesday afternoon. He will also become an unrestricted free agent when the market opens on Friday.
The Islanders will pay DiPietro an annual sum of $1.5 million for the next 16 years.