Why would we pay so much to dump an LTIR contract that doesn’t hurt our cap space?

Contracts on LTIR prevent teams from accruing cap space daily. Contending teams don't want to use LTIR all season because it limits them financially.

True but that is an overpay to dump an LTIR contract

Probably, yes. But they need to move it before the season starts. There's enough teams looking to get to the cap floor that it won't cost that much. Maybe a 3rd?

Rumor is he's going to Robidas island so they don't actually have to move him

If they want to accrue cap space, they should move him. It's dumb to keep him.

I get what you mean but it still doesn’t cost nearly as much to dump as what you have here. Past LTIR contracts being dumped have usually cost picks ranging from 5th rounders to 7th rounders (ex. Voracek, Bishop, Clarkson when we took him a few years back, etc)