The Los Angeles Kings and Mike Richards have reached a settlement over payment stemming from the club’s decision to terminate the 30-year-old’s contract in June.

The Kings released a statement:

The Los Angeles Kings have reached an agreement with Mike Richards to resolve the grievance filed in relation to the termination of his NHL Standard Players Contract. The terms are agreeable to all parties. We will not be commenting further on the terms.

The NHLPA also released a statement:

The National Hockey League Players’ Association (NHLPA) and the National Hockey League (NHL) have reached a settlement agreement regarding Mike Richards’ standard player contract. The settlement amicably resolves the grievance filed by the NHLPA on August 10, 2015 in response to the Los Angeles Kings’ termination of Richards’ contract. Richards is an Unrestricted Free Agent.

The terms of the settlement are not available at this time, though it appears as though there will be an annual cap hit through 2031 on top of the $1.32M cap recapture penalty, which runs through the 2019-20 season.

Regarding Mike Richards-LAK settlement that's expected to be concluded today: 1. LAK will pay the cap recapture penalty for next 5 years. — Bob McKenzie (@TSNBobMcKenzie) October 9, 2015

LAK will also face annual cap hit equal to dollars being paid out to annually to Richards and cap hit will last as long payment schedule. — Bob McKenzie (@TSNBobMcKenzie) October 9, 2015

Hearing that Mike Richards will be on the cap until 2031. Not sure of payment, but that is the term. — Elliotte Friedman (@FriedgeHNIC) October 9, 2015

The Kings had roughly $3.01M of cap space entering play Friday, according to General Fanager, though that number is expected to change as the annual payments are added to the recapture. With the settlement, Richards’ tenure with the Kings has officially drawn to a close. He is eligible to sign with any NHL team.

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