Mike Richards and the Los Angeles Kings have been working toward a settlement that appears very close to being done, sources said Thursday.

As first reported by my TSN colleague Bob McKenzie, the two sides have been working on the deal for a little while.

Last week, I started to hear rumblings about it, but everyone involved was nervous as to which direction the negotiations were headed. I believe that both sides now have the agreement where they want it, barring a last-second collapse.

The Kings terminated Richards’ contract in June after he was busted at the U.S.-Canadian border and later charged with illegal possession of a controlled substance, seemingly alleviating themselves of the $22 million and five years left on his deal, not to mention a $5.75 million cap hit.

But the NHLPA then filed a grievance on Richards' behalf, contesting the Kings’ actions. A hearing date for the grievance still hasn’t been scheduled, and now we know why, as settlement talks got underway.

If things proceed as expected, we'll learn what the agreed-upon settlement amount is and how it will affect the Kings’ cap charges moving forward.

In a case of a settlement, the cap treatment for the Kings will be as provided for in the collective bargaining agreement: the cap-recapture charge plus the amount of the settlement, as reflected on a cash basis.

Not that they’re related directly, but I would think if the Kings resolve this matter with Richards, it would allow them to make more concrete decisions in terms of an extension for Anze Kopitar, too.