Reilly wasn’t sent down.

That's odd. I just read in multiple places that he cleared waivers.

He did. That doesn’t mean he got sent down.

Maybe they intend to recall him soon? He cleared waivers which means he is assigned the AHL affiliate. Not saying that won't change but being sent down is what happens when players clear waivers.

He’s being sent down because of cap, they are over. So if they trade him there is not going to be salary coming back.

Not necessarily. They have 30 days before they have to send him down. If they LTIR someone they won’t. It just gives them the option to.

Isn't the contract assigned to Providence regardless? Maybe his physical body is not there, but doesn't his contract go automatically? Can it just hang somewhere in limbo if it isn't on the NHL club's books?

No

It’s just book keeping. The contract goes to Prov and McAvoy to LTIR and back up comes the contract.

A player clearing waivers does not mean he was sent down.

In order to benefit from LTIR, you need to be cap-compliant on Day 1; so, teams will often assign waivers-exempt players/ contracts to the minors only as a paper-move, then immediately "recall" them once the roster deadline has passed, and injured players are moved to LTIR. BOS took a chance since Reilly isn't waivers-exempt, but it looks to have worked out regardless. He'll probably be called up before their first game.

CBJ did this with Wennberg back in '16-'17 when they were against the cap. He was technically an AHL player for like, half a day or something lol