Yesterday, the Flyers acquired Mark Streit from the New York Islanders and are finalizing a new four-year contract with the veteran defenseman.
In order to fit Streit's new deal under the cap next season and make additional roster moves, Holmgren plans on buying out the contracts of center Danny Briere and goaltender Ilya Bryzgalov.
According to a league source close to the situation, the decision to buy out both players was made once Philadelphia's season ended, and while there has been internal debate over buying out Bryzgalov, such a move will be made shortly after the conclusion of Stanley Cup Final.
Teams are allowed a total of two compliance buyouts, to be used this off-season and/or next summer, and those figures will not count against the salary cap.
TFP first reported the Flyers' decision on Briere on May 23.
Briere, 35, has an annual salary cap hit of $6.5 million for the remaining two years of his contract, but is owed only $5 million in actual salary -- $3 million next season and $2 million in 2014-15. He would be owed $3.333 million over the next four seasons.
The league source also indicated that the decision to buy out Bryzgalov's deal isn't fully related to money, as "he's disliked by many" of his teammates.
"They don't want to play for him or with him," the league source said.
Bryzgalov, 32, has seven-years left on his contract. The Flyers will be responsible for paying him $23 million over the next 14 seasons -- roughly $1.642 million per year.
Buying out both Briere and Bryzgalov will create $12.166 million in salary cap space, but the Flyers won't be done there.
Holmgren remains very interested in Phoenix Coyotes defenseman Keith Yandle, despite the Streit acquisition and expected signing.
The Flyers and Coyotes had discussed a trade for Yandle at last year's NHL Draft, but Phoenix decided to hold on to him. Talks between the two clubs are expected to intensify this month.
Holmgren will also be looking to sign or acquire a top-six forward to replace Briere.