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Horton (back) failed his physical for the Leafs on Thursday, as expected, Pierre LeBrun of The Athletic reports.
Horton's deal -- $5.3 million annually through 2019-20 -- can now be designated for long-term injured reserve, which will provide the Leafs with much-needed cap relief. This figures to be an annual process for the 32-year-old until his contract runs out, at which point he will officially retire.