The Los Angeles Kings' decision to terminate the contract of centre Mike Richards has led to a number of questions.

Richards was placed on unconditional waivers on Sunday and cleared on Monday. The Kings were expected to buy out the remainder of Richards' contract, but have instead terminated the deal.

However, TSN Hockey Insider Bob McKenzie explained Monday that there were angles from which to approach the team's decision.

On LA terminating Mike Richards' contract for "material breach," there are myriad reasons why details can't be made public at this time. — Bob McKenzie (@TSNBobMcKenzie) June 29, 2015

Suffice to say it's extremely complicated and many lawyers are going to be very busy sorting this one out. — Bob McKenzie (@TSNBobMcKenzie) June 29, 2015

It is a given the Kings believe this move frees them of their contractual obligation to Richards and his $5.75M cap hit. — Bob McKenzie (@TSNBobMcKenzie) June 29, 2015

I'm going to suspect Richards and his representatives may not see it the same way. Stay tuned on that. — Bob McKenzie (@TSNBobMcKenzie) June 29, 2015

As far as NHL and LAK concerned, Kings are free of obligation to Richards and he's off LA cap, player eligible to sign anywhere. — Bob McKenzie (@TSNBobMcKenzie) June 29, 2015

Richards finished with five goals and 16 points in 53 games with the Kings in 2014-15, a season which included a stint with the American Hockey League's Manchester Monarchs.

The 30-year-old Richards has five years remaining on his contract worth an average annual value of $5.75 million.

Los Angeles, however, may not completely be off the hook for Richards' salary moving forward.

Note: Even tho LAK terminated Richards' contract, they are still responsible for a cap recapture amount, per CBA. — Bob McKenzie (@TSNBobMcKenzie) June 29, 2015

After termination of Mike Richards' contract, LAK face cap recapture penalty of $1.32M per year for each of the next five years. — Bob McKenzie (@TSNBobMcKenzie) June 29, 2015

So the key takeaway here is the Kings have opened up usable cap space (net gain of about $4.4M) for the coming season. That appears a given. — Bob McKenzie (@TSNBobMcKenzie) June 29, 2015

The termination may not be a final decision, however, as McKenzie pointed out that Richards and the Players' Association could choose to file a grievance over the matter.

If Richards/NHLPA file grievance over LAK termination, it will be heard by joint-appointed NHL-NHLPA Impartial Arbitrator. — Bob McKenzie (@TSNBobMcKenzie) June 29, 2015

Grievances often takes months, sometimes years, to be heard but request can be made for expedited hearing that sometimes take days or weeks. — Bob McKenzie (@TSNBobMcKenzie) June 29, 2015

Just spit balling here, but if Richards/NHLPA grieve LAK termination, likelihood of grievance being heard this wk is virtually non-existent. — Bob McKenzie (@TSNBobMcKenzie) June 29, 2015

It is likely player, his reps/NHLPA will dispute NHL/LAK interpretation tho low likelihood of anticipated grievance resolution before July 1 — Bob McKenzie (@TSNBobMcKenzie)June 29, 2015

Originally selected 24th overall by the Philadelphia Flyers at the 2003 NHL Entry Draft, Richards was dealt to the Kings in 2011 in exchange for Brayden Schenn, Wayne Simmonds and a second-round draft pick. In 710 career games with the two clubs, Richards has scored 179 goals and 303 assists.

He has won two Stanley Cups as a member of the Kings (2011 and 2014) and has won gold at both the Olympic Games (Vancouver 2010) and World Junior Championships (2005) representing Canada.

McKenzie added that he expects the Kings to allocate their funds towards pending free agents.