vic wrote:How does the league not see this as cap circumvention?
Because only Pronger can officially retire, and there's no incentive for him to do so. If he retires he doesn't get paid. As long as stays un-retired, but injured, he can continue to collect his salary by doing nothing. Doesn't really matter much to the Flyers, they're better off paying Pronger and using his LTIR space than not paying him and having less money to spend on salaries.
I also suspect there would be a lawsuit between the league and the NHLPA if the team tried to force retirement on Pronger.