Connor McDavid Signs Eight-Year, $100MM Extension
Number 97 will be in Edmonton for quite some time. The Oilers announced today at a press conference an eight-year, $100MM extension for the reigning Hart Trophy winner, keeping Connor McDavid in Edmonton until the summer of 2026. The extension, which kicks in for the 2018-19 season and carries a $12.5MM cap hit, will make McDavid the highest paid player in the league. $86MM of the deal will be paid out in signing bonuses, making the deal essentially lockout-proof.
While the contract isn’t the biggest in the league in terms of total dollars—that goes to Alex Ovechkin and his 13-year, $124MM deal—it is still a huge number for a player who won’t turn 21 until January of next year. Eight years is the maximum a player is allowed to be signed to under the new CBA, and $15MM would have represented the maximum dollar amount he could have received. Teams are not allowed to have an average annual value (AAV) surpass 20% of that year’s cap ($75MM). Had they waited to sign the contract until next season, any increase in the salary cap would have also changed the maximum a player is allowed to earn.
With a new deal on the books, the Oilers will turn their attention to Leon Draisaitl‘s next contract which must be resolved this summer. The second superstar on the club, Draisaitl is coming off a 77-point season and could easily get a contract that pushes their combined cap hit over $20MM. That’s a hefty price to pay, but not all that different than the scenarios in Chicago and Pittsburgh, where Jonathan Toews and Patrick Kane earn $21MM per season, while Sidney Crosby and Evgeni Malkin combine for $18.3MM.
That big number locked up into two players is hard to work with, but not impossible. As Elliotte Friedman of Sportsnet wrote when the deal was first reported:
You can win with two huge deals. I will bet on McDavid and Draisaitl being the right players. Growth is the key. If the cap rises, Edmonton rises with it.
While a raising cap is not guaranteed by any means, the Oilers couldn’t afford to sign McDavid to anything less or shorter and risk that he’d hit free agency earlier. This deal will buy out four UFA seasons from age 25-28, years which likely would have earned him a max contract if his career continues the way it has so far. In two years, McDavid has recorded 148 points in 127 games, won the Art Ross, Hart, and Ted Lindsay trophies and led the Oilers back to the playoffs for the first time in more than a decade.
With one year left on his entry-level deal, the Oilers are hoping to compete for the Stanley Cup once again before both contracts kick in, but have already started to feel the pinch. They dealt Jordan Eberle to the New York Islanders, and bought out Benoit Pouliot to clear some room. That kind of thing will continue, but with McDavid leading the way they’ll always be a dangerous team to play.
This deal will have ramifications across the league, with players like Auston Matthews and Jack Eichel surely taking note of it’s length and salary. Though it’s unlikely any of the other young players in the league will match McDavid’s impact in his first few years, it will certainly be a mark for those who come anywhere close. It’s certainly not inconceivable for Matthews in particular to have more points through his first two years, after McDavid lost half his rookie year to injury.
Photo courtesy of USA Today Sports Images
Tampa Bay Lightning Sign Jake Dotchin
As expected, the Tampa Bay Lightning have signed Jake Dotchin to a two-year contract worth $1.625MM. The average salary of just over $812K is a bargain for a player expected to play a big role for the Lightning this year.
Dotchin made quite an impact in 2016-17, coming up from the Syracuse Crunch to play 35 games for the Lightning in the second half of the season. Recording 11 points in that time, he climbed up the lineup and even played with Victor Hedman at times. While he can cross the line at times—Dotchin is well-known in Toronto circles as the player who injured Kasperi Kapanen, kneed Auston Matthews and received a suspension for injuring Frederik Gauthier in the AHL playoffs—he is also a very effective two-way defender that should be a big part of the Lightning blueline for a long time.
The best part for Tampa Bay might be Dotchin’s handedness, as Hedman and youngsters Slater Koekkoek and Mikhail Sergachev are all left-handed. Dotchin will join Anton Stralman and Dan Girardi on the right side full-time this season.
Joe Smith of the Tampa Bay Times was first to report the signing was close yesterday.
Jesper Fast Signs Three-Year Deal With New York Rangers
The New York Rangers have locked up Jesper Fast for a few more years, signing him today to a three-year $5.55MM contract. Fast was eligible to file for arbitration before today’s deadline. He will be an unrestricted free agent at the contract’s conclusion. The $1.85MM average salary is a $900K raise over his last deal. 
Fast played 68 games for the Rangers last season, again cracking the 20-point mark despite a limited role. That role may increase slightly next season, as Fast continues to show that he can produce at both ends of the rink. If given the chance, 40 points doesn’t seem out of the question in his prime years though he also has excellent value in a checking role.
For a team that has lost Oscar Lindberg and Derek Stepan already this summer, getting Fast back under contract for a reasonable contract was imperative. It is interesting that they didn’t get him signed for longer, but with cap space dwindling and a new deal for Mika Zibanejad still needed, the Rangers likely couldn’t afford to buy out many free agent years.
Instead, Fast will be on the open market at 28 in the summer of 2020. If he can continue his performance for the next few seasons, and even show a little more offense he’ll be highly sought-after in free agency. Not bad for a sixth-round pick.
Photo courtesy USA Today Sports Images
Nikita Nesterov Deciding Between Four Teams, Two Leagues
When the Montreal Canadiens decided not to qualify Nikita Nesterov, it made him an unrestricted free agent and able to sign with any team in the league. Now, agent Dan Milstein of Gold Star Hockey reports that his client’s decision is down to two NHL options and two KHL options. The young defenseman will make a final decision by Saturday.
Nesterov, 24, was never able to find a fit in Montreal after a mid-season trade from the Tampa Bay Lightning. Despite pretty solid possession statistics, neither team has been able to trust him much on a regular defensive shift, and because of it he’ll have to find his third team in a young career. You’d think rebuilding clubs would give him a look, and try to develop his two-way game into something of value.
The KHL is a clear option, as Nesterov was drafted out of Chelyabinsk in 2011 and could even have an outside chance at suiting up for Russia at the 2018 Olympics given their relative lack of defensive options. He did play one game at last fall’s World Cup, and with several defensemen—namely Dmitry Orlov, Dmitry Kulikov, Alexei Emelin, Nikita Zaitsev and Andrei Markov—all unlikely to be eligible due to the NHL’s ruling, Nesterov would be pretty high up the charts.
2017 Arbitration Tracker
The deadline to file for player-elected salary arbitration comes in at 4pm this Wednesday, July 5th, while the next day brings the deadline for team-elected filings. To understand the entire arbitration process, make sure you read Mike Furlano’s Capology 101 posts on the process (part 1, part 2).
Below, you can find a complete list of arbitration eligible players broken down by team, and their decisions as they come in. Refresh this page often as new information will be added as it comes in.
St. Louis Blues Sign Klim Kostin To Entry-Level Contract
After being released from his KHL team due to financial issues, Klim Kostin has signed a three-year entry-level contract with the St. Louis Blues, allowing him to come over to North America for next season to play in either the NHL or AHL. The 31st-overall pick has already made quite the impression at Blues development camp, after being relatively unseen in his draft year.
The Blues acquired the pick by trading Ryan Reaves to the Pittsburgh Penguins, and Kostin has huge boom-or-bust potential. The Russian winger played in just a handful of games after losing most of his season to injury, but was still ranked as the top international skater by the NHL’s Central Scouting. His profile, as a do-it-all power winger that can skate, shoot and hit is one scouts drool over but still has to overcome some consistency issues (like most draft talents).
Kostin was selected first-overall in last year’s CHL import draft, but he’s already said he won’t play for Kootenay and signing his ELC makes that even more clear. The Blues want him to get into the system right away, as his offensive game is developed enough to jump right to the AHL level. There’s no guarantee he ever makes the NHL, but if initial reports out of camp are to be believed, he’s got his eye on the top league already and the talent to get there.
Early Notes: Tolvanen, Peca, Latta
Eeli Tolvanen, the Nashville Predators’ first-round pick from the recent draft, has signed on with Jokerit of the KHL for the 2017-18 season. The deal also includes an option for 2018-19, and will provide a landing spot for Tolvanen after his earlier issues. The Finnish winger was planning on staying in North America and joining Boston College, but failed to meet their admissions standards and was rejected.
Instead, Tolvanen will play in the KHL for at least a year before deciding where next to spend his professional career. The undersized winger spent two years in the USHL, where he put up 54 points in 52 games last season for the Sioux City Musketeers. Nashville selected him with the 30th-overall pick.
- The Tampa Bay Lightning have signed Matthew Peca to a one-year, two-way contract worth $650K at the NHL level. Peca made his NHL debut last season and spent ten games with the Lightning, scoring two points. The undersized forward had another big season with the Syracuse Crunch, and should be expected to spend the majority of 2017-18 in the AHL once again.
- The Arizona Coyotes signed Michael Latta yesterday to a similar one-year, two-way contract. Latta split last year between the Ontario Reign and Rockford IceHogs, scoring 22 points. Traded mid-season for Cameron Schilling, Latta will now try a new organization for the time being. Never able to quite duplicate the offensive prowess he showed for the Guelph Storm before being selected in the third round, Latta is now AHL depth for the Coyotes.
- Montreal has announced several front office changes, hiring Franvis Bouillon as a development coach, and moving Rob Ramage to Director of Player Development. Ramage will be replacing Martin Lapointe, who has been promoted to Director of Player Personnel, while Vincent Riendeau has moved from Assistant General Manager of the AHL team to Director of Goalie Development and pro scout.
New York Rangers Sign David Desharnais
Wednesday: The team has officially announced the signing.
Tuesday: The New York Rangers have been looking for some depth at center since moving Derek Stepan to the Arizona Coyotes, and they may have found it on the open market. David Pagnotta of The Fourth Period is reporting that the team has agreed to terms with free agent David Desharnais on a one-year contract, though the team has yet to announce any deal. Larry Brooks of the New York Post has it at $1MM.
Desharnais was ranked #42 on our list of the top free agents this year, projecting the same one-year, $1MM deal. The former 60-point player hasn’t had that sort of offensive success in several seasons, though did settle into a depth role with Edmonton after a mid-season trade. Now 30, the undersized center won’t be relied upon in anything more than a bottom-six role in New York, with Mika Zibanejad and Kevin Hayes likely starting the season in the top two center roles. While he won’t be replacing Stepan, the Rangers also lost Oscar Lindberg to the Vegas Golden Knights, and needed help down the middle in several different roles.
Still, for a team with dreams of another 100-point season, lining Desharnais up as your third-line center for the entire season is a recipe for disaster. He scored just 14 points last season split between Montreal and Edmonton, and though a bounce-back is definitely possible it’s far from probable. It will be interesting to see how they deploy him, and if they move another player—like J.T. Miller—into a center role or try to acquire another one by trade. Either way, they’ll hope the 5’7″ Desharnais will provide some value.
The other interesting note is the Rangers’ cap situation and how little room they have to re-sign Zibanejad and Jesper Fast. Though those are their only restricted free agents of note, a deal for Desharnais eating any more than $1MM would make it difficult to sign both without moving out other salary. Both are arbitration eligible and looking for their third contracts, and are coming off a combined $3.6MM in 2016-17. Already with just $8.35MM in cap space, there isn’t much wiggle room. If Kevin Klein does retire or go to Europe as rumored at one point, that would open up some more space or the team could potentially bury or buyout another contract to create some room. Either way, they’ll have to spend their dollars carefully before an arbitration decision could force them to make another move.
Photo courtesy of USA Today Sports Images
Who’s Playing On Another Team’s Dime?
The most recent CBA introduced retained salary transactions—trades where a team trade a player but agree to pay a percentage of his salary. This is ideal when a team wants a player but will have trouble fitting him in under the cap. The ability to retain salary comes with restrictions, however, so let’s briefly look at how retained salary transactions work before looking at which players are subject to them.
- A team can retain up to 50% of a player’s average salary (including bonuses);
- The retained salary amount is uniform over the full length of the player’s contract;
- A team can retain up to three players’ salary at one time;
- A team cannot have more than 15% of the salary cap devoted to retained salary;
- A team cannot retain salary on a player who is already subject to two current retained salary transactions;
- If a team acquires a player with retained salary, then trades him while also retaining salary, the second retained salary agreement cannot modify the initial retained salary agreement;
- Teams cannot reacquire a player within a year of trading him if it agreed to retain salary in the initial transaction (unless the player’s contract terminated);
- Retained salary obligations apply to any cap advantage recapture amounts; and
- Retained salary obligations still apply if a player is bought out or loaned to an AHL club. The NHL team would pay a portion of the player’s AHL salary (if applicable).
Dynamo Moscow Releases Almost All Players
The KHL’s Dynamo Moscow released all its players on one-way contracts earlier today, reports Russian sports reporter Slava Malamud. The formerly-esteemed hockey club is in dire financial straits and may not even be able to play in the upcoming KHL season. This marks the second major blight on the KHL in recent times. The league lost two teams to contraction before the season started, with Metallurg Novokuznetsk being kicked out and Medvescak Zagreb moving to the EBEL, a lower-level Austrian-based league.
Earlier reports indicated that Dynamo has not paid its players for months. Players went on strike last month after new owners refused to honor the team’s debts—including unpaid player salary. Players eventually appealed to the KHL, who most likely forced Dynamo’s hand into making this move. It is unclear at the moment whether the KHL or the team itself voided the player contracts.
Dynamo’s money trouble came to light last month after, according to the Associated Press, its offices were raided by anti-fraud and corruption police. The team is under investigation for embezzlement, and is rumored to be about $35MM USD in debt. It’s current situation is a far cry from just a few years earlier, where Dynamo sat atop the KHL in 2012 and 2013. More recently, the team housed NHL phenom Alex Ovechkin during the 2012-13 NHL lockout, and current Toronto Maple Leaf Leo Komarov one year later.
The team released 42 players in all (see complete list at Elite Prospects). Most notably is Klim Kostin, drafted earlier this summer in the 1st round, 31st overall, by the St. Louis Blues. As reported earlier, Kostin is close to signing an ELC with the Blues following his release from Dynamo. Other recent former NHL draft picks include Yegor Zaitsev (2017 7th rd – New Jersey Devils) and Andrei Mironov (2015 4th rd – Colorado Avalanche).