Girardi had three years remaining on his contract with the team, with a cap hit of $5.5 million per season.
“Dan’s contributions to the New York Rangers organization have been immeasurable,” Rangers president Glen Sather said in a release. “He has been a role model through his relentless determination, giving everything he had to this organization both on and off the ice. He, Pam, Landon, and Shaye will always be a part of the Rangers family.”
The 33-year-old has spent his entire 11-season NHL career with the Rangers, totalling 46 goals and 230 points in 788 games.
“I would like to thank Dan for everything he has given of himself to the Rangers over 11 seasons,” Rangers general manager Jeff Gorton said. “He has been one of the key contributors to our success over the past decade. We have the utmost respect for Dan and wish him all the best going forward.”
The buyout will save the Rangers just under $2.5 million in cap space for the 2017-18 season, and just under $1.5 million a year for the next two seasons, according to Capfriendly.com.
New York will then carry a $1.1-million charge against its cap from 2020-23.
“I poured my heart and soul into this team for the past 11 seasons and I enjoyed every minute of it,” Girardi said in a statement. “I want to acknowledge that the Rangers are a first class organization who have always treated our players in a first class fashion.
“My family and I are most grateful for the way we have been treated during our stay in New York.”