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Jets Agree To Three-Year ELC With Patrik Laine

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After selecting Finnish forward Patrik Laine second overall in this summer’s NHL Entry Draft, the Winnipeg Jets have inked him to a three-year entry level contract, according to a team release.  TSN’s Rick Ralph adds that the deal will pay Laine an AAV of $3.575MM, though will only carry the maximum $925K cap hit.  Chris Johnston of Sportsnet breaks it down even further, telling us that the contract carries the maximum $850K Schedule A bonus, and $1.8MM of Schedule B bonuses.

After scoring 17 goals and 33 points among professional hockey players in Finland’s Elite League, Laine will make his journey across the pond to the NHL this season, as he’s expected to break camp with the team as an 18 year old.  Laine has been compared to some of the game’s elite goal scoring wingers in the past, and has a chance to immediately impact a Winnipeg Jets team who scored just 215 times last season.

Laine is the second of the top three picks to sign his entry-level deal, as Pierre-Luc Dubois has already agreed to terms with the Columbus Blue Jackets for $3.425MM per season.  This leaves Auston Matthews left to sign his deal with the Maple Leafs, which should come in at a similar number, as $3.775 is the maximum allowable for an entry-level contract.

The Signing Bonus: Rise Of The Buyout-Proof Contract

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The life of an NHL agent is tough. As the league continues to tweak (or totally overhaul) their CBA each few seasons, changing contract regulations and offering teams different ways of structuring deals, agents are always trying to find ways to circumvent them and get the best offers for their clients.

With teams becoming more and more willing to use buyouts to rid themselves of the horrible contracts that they sign on July 1st – famously a day of simultaneous excitement and regret – agents around the league needed to find a way to protect their clients from losing out on a third (or sometimes two-thirds) of the salary the sides agreed on.

The most recent buyout window, which lasted from June 15th to 30th, saw a dozen NHL players bought out, including household names like Thomas Vanek and Dennis Seidenberg. While some fans may see this as an opportunity for a player to earn two contracts at the same time – Vanek was signed on by Detroit for $2.6MM on July 1st, more than the $1.5MM he surrendered in his buyout – most take it as a personal slight, an indictment of their play or character. Regardless, agents continue to try and secure guarantees for their clients, instead of leaving the power in the hands of the league’s general managers.

Enter the signing bonus, this summer’s contract-du-jour. All across the league, big name free agents have inked deals that will see them paid almost entirely in signing bonuses, with very little actual salary being given out each season.  Take Loui Eriksson for instance:

2016-17 – Salary: $1MM, Bonus: $7MM
2017-18 – Salary: $1MM, Bonus: $7MM
2018-19 – Salary: $1MM, Bonus: $6MM
2019-20 – Salary: $1MM, Bonus: $4MM
2020-21 – Salary: $1MM, Bonus: $3MM
2021-22 – Salary: $3MM, Bonus: $1MM

While Eriksson’s cap-hit sits at $6MM per year, he’ll make more than that in bonuses alone each of the next three seasons. There are a couple of reasons why this would benefit the player.

For one, everyone loves getting a big check rather than a weekly salary – who would turn down a piece of paper with six zeros?  As any economist will tell you, money in hand is worth more than money promised to come, and just as teams in other sports are deferring payments for this reason long into the future, having money up front is actually more valuable for the player in question.

It’s in the buyout rules that the contract really holds value though, as – hinted at by the title – these contracts are basically buyout-proof.  Under the current CBA, buyouts are calculated by taking two-thirds of the remaining salary owed, not including signing bonuses, and spreading it out over twice the remaining contract length. The new cap hit is determined by subtracting the savings from the average annual value of the deal which includes signing bonuses.

This means that if the Canucks were to want to buy out Eriksson after say, the third year of his new deal, they’ll only be saving $333K of cap hit in 2020-21, an insignificant portion of the $6MM number. That last season of $3MM is a bit better for the Canucks (they would save $2MM of his cap hit), but structuring it this way almost guarantees that Eriksson will collect at least $35MM of his deal – more than 97%. It’s just not worth it to buy him out any sooner than his final year.

Andrew Ladd, Milan Lucic, Kyle Okposo all signed deals heavily impacted by signing bonuses, protecting them against a buyout through all but the very end of their agreements.  Even Matt Martin, a career fourth liner secured a $10MM deal that is 65% bonus.  He’ll only be collecting $750K in salary in years three and four of the deal.

While this doesn’t necessarily mean trouble for clubs around the league, you can bet the owners and NHLPA will take a look at it when negotiations begin on the new CBA.  The current agreement expires in 2022, though the two sides have the option to end it a year earlier.

Just as the league has used cap recapture and contract limits to close loopholes in the past, be sure that if they want to continue to have the option to buyout bad contracts they’ll remove this option from the equation.  Creating a rule that would make signing bonuses only be able to hit a certain percentage of each season’s salary would be the easy fix, but expect push-back from the NHLPA.

Even if they do end up closing it, agents will work on another way to get their clients the best possible guarantee; they always seem to be one step ahead of the league.

Panthers Extend Reilly Smith For Five Years

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Clearly the biggest players in free agency this year, the Florida Panthers are close to another move to lock up their young core. Gary Lawless of TSN was first to report that the team was close to an extension with forward Reilly Smith that would pay him $5MM a season for an additional five years.  The team has since confirmed the length of the deal, though not the financial details.

In just the past few weeks, the team has traded for then signed Keith Yandle, dealt away Dmitry Kulikov, given extensions to Aaron Ekblad and Vincent Trocheck, signed free agents Jason Demers and James Reimer, and pretty much owned the hockey world.

Smith, 25, had an excellent season last year with the Panthers, scoring 25 goals and 50 points. The former third round pick has had quite a start to his career, putting up at least 40 points in each of his first three full seasons. The talented young winger came over to Florida in the deal that saw them take on Marc Savard’s cap-hit from the Bruins, one that they recently dealt to New Jersey for some cap relief of their own.

The Panthers have been on quite a clear path lately, trying to push past the first round of the playoffs for the first time since 1996, the year they lost in the Cup finals to Colorado. After being knocked out by the New York Islanders last season, the team has made clear upgrades to their defensive group, and should have one of the better top pairings in the league with Ekblad and Yandle signed long-term.

Smith is still under contract for next season at a $3.43MM cap hit, meaning that a five-year extension would take him through the 2021-22 season.  Perhaps not coincidentally, that is also when Trocheck and Aleksander Barkov will hit free agency, giving the team a chance to re-tool if they need to at that point.

If the financials are true, it would mean the Panthers have four young forwards under contract long-term for less than $6MM apiece in Barkov, Trocheck, Smith and Nick Bjugstad. All 25 or under, that quartet scored 93 goals last season. Next on the to-do list would be Jonathan Huberdeau, the former third overall pick who put up 20 goals of his own last season.  He’s due $3.25MM next year before becoming an arbitration-eligible RFA next summer.

Pacific Division Notes: Puljujärvi, Lindholm, Vegas GM

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Edmonton Oilers fourth overall pick RW Jesse Puljujärvi is not taking part in the on-ice portion of the team’s rookie camp in Jasper, AB, after undergoing knee surgery following the U-18 World Championships. Puljujärvi expects to be “good to go” in a month, meaning he’ll be ready for training camp in September.

More from the Pacific Division:

  • The Anaheim Ducks did not take part in the madness that was the opening of free agency, but still have some serious work to do this summer. Number one defenceman Hampus Lindholm and third line center Rickard Rakell still need to be signed. Lindholm will be looking for a long-term deal over a more team-friendly bridge contract, but the Ducks will want to get him under contract before another team decides to offer-sheet him. While there hasn’t been an offer sheet since the bizarre Ryan O’Reilly situation between Colorado and Calgary in February 2012, the Ducks won’t want to risk exposing their number one defenceman to an expensive offer sheet, which they would almost certainly match despite being a budget team.
  • The Las Vegas expansion franchise wants to name a General Manager before the end of the month, according to a report on NHL.com. Owner Bill Foley said he’d like the team to come up with three to five candidates to interview, and the team is working with the NHL to properly contact teams about potential candidates. Foley also revealed that the team’s nickname and color scheme will be unveiled in the fall.

Hurricanes Sign Tennyson To One-Year Contract

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Defenceman Matt Tennyson and the Carolina Hurricanes have agreed to one year, two-way contract worth $675K at the NHL level and $275K in the AHL. Tennyson put up 4 points in 29 games with San Jose last season.

Hurricanes GM Ron Francis said he believes Tennyson can play at the NHL level, and provides right-handed depth. Despite being an inexpensive depth option, the signing continues the trend of right-handed defensemen being valued additions to teams. At this point in his career, Tennyson figures to be a bottom-pairing or seventh defenceman at the NHL level but was signed early in free agency.

Tennyson was an un-drafted free agent signing by the Sharks in 2012, and has appeared in 60 NHL games over three seasons, totalling 14 points. He also scored 65 points in 169 AHL games with the Sharks’ AHL affiliates Worcester Sharks and then San Jose Barracuda.

Vesey Remains Committed To Free Agency

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Jimmy Vesey will wait a little longer before deciding his future.

The Harvard grad says he’s committed to becoming an unrestricted free agent, but that won’t happen until August 15. The end-of-summer signing period won’t prevent him from being heavily sought-after. While Vesey has never publicly revealed his shortlist, Kevin Paul Dupont of the Boston Globe reports Toronto, Boston, Buffalo, both New York teams, New Jersey, and “potentially” St. Louis and Philadelphia having potentially having major interest.

Vesey was drafted 66th overall in 2012 by the Nashville Predators. He played 4 seasons post-draft at Harvard, posting 144 points in 128 games. But when it came time to sign his entry-level contract with the Predators, Vesey declined to put pen to paper, despite allegedly saying he would. Not wanting to lose a good prospect for nothing, the Predators traded Vesey to Buffalo for the 70th pick in this year’s entry draft, recouping the draft pick they spent on Vesey but not the four years of development.

According to Frank Seravalli of TSN, the Sabres plan on making their pitch to Vesey sometime this week, with hopes of convincing him to sign and play with his good friend, Jack Eichel. Vesey and Eichel have been playing together on a summer league team for years now, and Eichel has already given Vesey the talk about Buffalo. However, Vesey’s agent confirmed that free agency is still the plan.

Despite being done school, Vesey will spend his summer doing homework on where he wants to sign. He has family connections in Toronto, with his dad working with the Maple Leafs and his brother being drafted by them. He’s spent four seasons playing in Massachusetts. His good friend plays with Buffalo.

All of the above-listed teams have room for Vesey in their top 6 forwards, and will be getting a highly-motivated player.

Free Agent Frenzy: Day 2 Activity

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After yesterday’s absolute madness, that saw over $600MM dollars given out, day two had fewer fireworks.  Teams still got a lot done, with the highlight being a five year, $22.5MM deal given to free agent defenseman (and right-handed shot) Jason Demers.  Here is all of the day’s activity:

Trades:

To St. Louis: 2017 fifth round pick (BUF)
To Buffalo: G Anders Nilsson
(link)

Free Agent Signings:

D Nate Guenin (ANA) – One year, $600K (link)
C Alex Friesen (STL) – One year, undisclosed (link)
D Brad Hunt (STL) – One year, undisclosed (link)
C Wade Megan (STL) – One year, undisclosed (link)
D Chris Butler (STL) – One year, undisclosed (link)
C Jacob Doty (STL) – One year, undisclosed (link)
C Brad Malone (WSH) – One year, $575K (link)
G Kristers Gudlevskis (TB) – One year, undisclosed (link)
RW P.A. Parenteau (NYI) – One year, $1.25MM (link)
LW Chris Terry (MON) – One year, undisclosed (link)
D Philip Samuelsson (MON) – One year, $600K (link)
D Jason Demers (FLA) – Five years, $22.5MM (link)
C Vincent Trocheck (FLA) – Six years, $28.5MM (link)
D Julian Melchiori (WIN) – Two years, $1.25MM (link)
C Derek Grant (BUF) – One year, undisclosed (link)
G Anders Nilsson (BUF) – One year, $1MM (link)
D Roman Polak (TOR) – One year, undisclosed (link)

Entry-Level Contracts:

D Justin Holl (TOR) – One year, $925K (link)
D Ethan Bear (EDM) – Three years, $2.78MM (link)
C Conner Bleackley (STL) – Three years, $2.78MM (link)
G Jamie Phillips (WIN) – Two years, $1.35MM (link)

Metropolitan Notes: Hall, Cullen, Islanders

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While Taylor Hall will be joining a new team in a new conference as a result of his trade to New Jersey on Wednesday, he will at least be reunited with a familiar face in Adam Henrique, writes Chris Ryan of NJ.com.  The two played together, often on the same line with the OHL’s Windsor Spitfires from 2007-2010.  Hall and Henrique will likely get to play together again with the Devils on a new look top line next season.

More from the Metropolitan Division:

  • The Penguins are still waiting to hear back whether or not C Matt Cullen will be re-signing them, according to Dave Molinari of the Pittsburgh Post-Gazette. Pittsburgh hasn’t given him a deadline to make his decision.  Cullen is ranked 38th on our Top 50 UFA list.
  • Ownership of the New York Islanders officially changed hands yesterday as Scott Malkin and Jon Ledecky took over from Charles Wang, who retains a minority ownership in the team. Despite the change in team control, the team will not be making any changes behind the bench or in management, writes Arthur Staple of Newsday.  The new owners aren’t wasting any time either as Malkin spoke to Andrew Ladd during his visit on Thursday in the free agent interview period.  Ladd quickly signed with the Isles on Friday, inking a seven year, $38.5MM deal.

The Exceedingly Expensive Right-Handed Defenseman

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The problem of right-handed defensemen (RHD) has been one for a while in the NHL, with teams struggling to find three good ones to slot into their blueline. Last season, there were only 80 of them that played in at least 41 games (half the season), compared to a whopping 111 southpaws.

Of the RHD group, the best are among the league’s elite, with all three of the top Norris trophy vote-getters skating on the right side (Drew Doughty, Erik Karlsson, and Brent Burns). This top group is being paid like the superstars they are, but it’s beginning to present as a trend throughout the league to overpay, through free agency or trade, for some of the mid-level (or bottom rung) talent.

Aaron Ekblad finds himself in that top group, and was rewarded with a whopping $60MM extension before his 21st birthday. The Panthers realized that he was worth $15MM (or, more accurately $1.15MM per season) more than another recent signee, Keith Yandle, despite only buying out four free agent years.  This isn’t a mistake, far from it, it’s just the going rate for right-handed talent.

The Oilers were recently affected by it as well; they ended up trading one of the best wingers in the world for a good (and maybe great) RHD because it’s been so long since they’ve been able to find one.  The Taylor Hall for Adam Larsson deal is a massive overpay because Edmonton were dead-set on the idea of acquiring a member of the NHL’s smallest communities.

We saw it most clearly when the right-handed Ben Lovejoy received a bigger contract (in total $) than Dan Hamhuis, despite being just 14 months younger than him.  Most people would agree that the former Penguin isn’t the player Hamhuis is, but he is right-handed.

Lovejoy will also be earning more per season for the Devils than their own outgoing David Schlemko, who by all rights is a much better defenseman and is capable of about the same production offensively. He’s also more than three years younger than Lovejoy, albeit with a shorter track record to match.

The Maple Leafs even brought back Roman Polak today, a move which had many analysts scratching their head due to the Leafs’ glut of young blueliners in the minor league system. The Leafs know that Polak will be valuable again at this year’s deadline – last season they used San Jose’s need for a RHD to the tune of two second round picks (apologies to Nick Spaling).

It’s this extreme lack of options that makes today’s signing of Jason Demers by the Florida Panthers look so fantastic, as they locked up the top-4, RHD for just $4.5MM per season for the next five years.

When Kevin Shattenkirk is commanding pieces like Dylan Larkin in trade, and Larsson can net you a superstar in Hall, signing right-handed defensemen in their prime to reasonable contracts isn’t something that should be taken lightly – in fact, it’s almost never seen in today’s NHL.

Sens’ Prospect Colin White Headed Back To NCAA

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According to a report from Ken Warren of the Ottawa Citizen, Ottawa Senators’ prospect and former first-round pick Colin White has decided to go back to Boston College this season. The 19-year old was considered a possibility to crack the team’s NHL roster, but has decided to return to the Eagles for 2016-17.

White, selected 21st overall in 2015, exploded onto the college scene last season with 43 points in 37 games as a freshman. His 19 goals ranked third on the team, and those 43 points put him fifth in the entire H-East division.

While this shouldn’t scare any Senator fans, and doesn’t deserve any comparisons to the recent comments of Jimmy Vesey about hitting free agency, White did have a chance at cracking the roster as early as this season.  Boston College is an outstanding program that will take control of his development for another season, and he should see an increased role in their offense as they go after another national championship.

Fellow Boston College standout Ian McCoshen recently signed on with the Florida Panthers after three seasons in college, and White may take a similar path.

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