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NHL

Could Coronavirus Lead To The Return Of Compliance Buyouts?

March 19, 2020 at 6:20 pm CDT | by Zach Leach 8 Comments

Just two weeks after the NHL announced a projected 2020-21 salary cap range that would have represented a major boost in teams’ spending power, things could not have gone in a worse direction in terms of meeting that estimation. The Coronavirus outbreak has shut the league down and there is no way to know when or if games will return this season. The league hopes to resume play and even maintains that they would like to avoid missing any games, but with each passing day that reality grows less and less likely. COVID-19 fears seem almost certain to cost games if not the entirety of the remaining regular season schedule and, in the worst-case scenario, possibly the playoffs as well. Missed games are missed revenue opportunities and the board of governors would be highly unlikely to approve a cap increase, especially of the magnitude initially projected, if they continue to suffer losses.

The last time that the NHL was forced to cancel games was in the 2012-13 lockout-shortened season. As the league and players’ association battled over collective bargaining terms, the NHL missed the first half of their season. A 48-game schedule began on January 19th, which for all involved was better than nothing but was certainly a hit to owners’ bottom lines. The 2012-13 campaign was expected to carry a $70.2MM cap hit, but that instead was a pro-rated number that in reality was just $60MM. The following season, given the lost revenue, the cap only meagerly returned to just $64.3MM, the same upper limit as in 2011-12.

Due to the unexpected stagnation of the salary cap for those two years, many teams were left under immense pressure to fit their rosters under the ceiling. In response, the NHL offered a solution: the “compliance buyout”. The compliance buyout follows the same rules as a standard buyout, allowing teams to cut ties with a player at the cost of two-thirds of the remaining value of their contract (one-third if under 26) over the course of double the length of the remaining term on the contract. The one defining difference is that compliance buyouts do not count against the salary cap. The NHL made this option available in the 2013 and 2014 off-seasons, with a limit of two per team over the two summers, and 18 teams took advantage. In fact, a number of teams are still paying off those buyouts – with a ways to go – with standouts including Christian Ehrhoff, Brad Richards, Ilya Bryzgalov, Vincent Lecavalier, and of course Rick DiPietro.

Could the compliance buyout make a return appearance should the Coronavirus outbreak continue to prevent NHL action from returning? If NHL teams end up losing revenue due to missed games, the 2020-21 salary cap limit will at best be the low end of the league’s projection, which is $84MM. And that would still be a $2.5MM increase. More likely in the case of canceled games would be the salary cap remaining at $81.5MM or only increasing marginally. Such a shift in the expected course of action would leave many teams in trouble. A report earlier today named the Chicago Blackhawks as one team that would have to make difficult roster decisions in the event of a stagnant cap, but they are far from alone. 13 teams already have $70MM+ in salary committed to 2020-21, while many of the 12 more  teams in the $60-70MM range either have key free agents to re-sign or are working with a small number of signed players. The Arizona Coyotes, who lead the pack with $79.99MM committed to just 18 players, were already hard-pressed to deal with an $84MM salary cap, nevertheless a continuation of the current $81.5MM. They would be left in a nearly impossible situation, unless offered a way out.

As such, it seems like a strong possibility that the compliance buyout could make its triumphant return. While the league does not want to address the “what if” of missed games at this point in time, should it reach the point where that result is inevitable, compliance buyouts will certainly become a hot topic. Whether the league would go about the process in a similar manner as they did last time around remains to be seen. They might instead offer a one-time shot this summer in light of NHL Expansion in 2021 that should get the salary cap back on track. It’s too early to tell, but as we all wait out the Coronavirus, it’s worth wondering whether the league could bring back an old device to mitigate the lasting effect of the pandemic.

Chicago Blackhawks| Coronavirus| Expansion| NHL| Schedule| Utah Mammoth Brad Richards| Christian Ehrhoff| Ilya Bryzgalov| Pro Hockey Rumors Originals| Salary Cap

8 comments

Ottawa Senators Player Tests Positive For COVID-19

March 17, 2020 at 11:25 pm CDT | by Gavin Lee 11 Comments

The NHL could only escape for so long. Tonight the Ottawa Senators have announced that one of their players has tested positive for coronavirus (COVID-19) and is in isolation. The player is experiencing mild symptoms.

According to Hailey Salvian and James Mirtle of The Athletic (subscription required), several Senators players are dealing with symptoms and awaiting test results. The report notes that the Senators team played at the Staples Center in Los Angeles just before the NHL shutdown, which had just hosted the Brooklyn Nets of the NBA, who have had four players test positive for COVID-19 in recent days.

The Senators announced that the team is now notifying anyone who has had close contact with the player in question—whose identity has not yet been revealed—and that the rest of the team has been asked to stay isolated.

This is the first NHL player to test positive for the disease.

If it was contracted in the Staples Center facilities, it shows just how important it was for both leagues to quickly suspend play. After the Senators played on March 11th, there was due another team—be it NHL or NBA—in one of the visiting locker rooms for each of the next 11 days. The Nets, Houston Rockets, Anaheim Ducks, New Orleans Pelicans, Denver Nuggets, Dallas Mavericks, Montreal Canadiens, Utah Jazz, Boston Bruins, Phoenix Suns, Vancouver Canucks and Arizona Coyotes were all on the schedule from March 12th through 22nd, not to mention the Los Angeles Kings, Clippers and Lakers who would all be sharing the playing surface.

Coronavirus| NHL| Newsstand| Ottawa Senators

11 comments

NHL Issues New Directive To Players

March 16, 2020 at 9:14 am CDT | by Gavin Lee 1 Comment

After the CDC recommended all gatherings of more than 50 people to be avoided for the next eight weeks, sports leagues around North America quickly realized that their suspended seasons may not be returning as quickly as originally planned. With that in mind the NHL has now issued a new directive to players according to Chris Johnston of Sportsnet, indicating that they are allowed to go home or leave the country but must stay in self-quarantine until the end of March. As Johnston explains, this comes in stark contrast to the league’s previous plan to keep players in their team cities and ready to return to practice. Sportsnet’s Elliotte Friedman quotes the memo directly:

Our objective will be that, in addition to continuing regular updates, we will be able to provide high-level guidance on potential of opening a training camp period roughly 45 days into the 60-day period covered by the CDC’s directive.

That timeline can obviously change by the minute as we have seen, meaning at this point it’s hard to even speculate on when the NHL will return to action. Players leaving the country will only make restarting the league take even longer once a decision is made, and will very much mean any activation would be dependent on the travel policies of the involved nations.

NHL

1 comment

World Championship In Jeopardy Of Being Cancelled

March 15, 2020 at 4:23 pm CDT | by Holger Stolzenberg Leave a Comment

While it may not come as much of a surprise with hockey leagues and tournaments getting cancelled, one of the biggest tournaments coming up in May is the World Championship, which is supposed to be held in Switzerland between May 8-24, could find itself on the chopping block as well.

According to German website SRF (translation required), IIHF President Rene Fasel has expressed concern over whether the World Championships will likely be played.

“With the current facts, it is hard to imagine that the World Cup will be held. We have a responsibility to the people of the country,” said Fasel. “It is now a matter of discussing the situation – with all those involved. We still have some time and would like to make the decision with a clear head.”

With the tournament just eight weeks away, it would seem unlikely that the tournament will continue at the moment with the threat of COVID-19 at its peak in Europe. On top of that, with the NHL season still to be determined, there is a possiblity that NHL players will not be availabe at the start of the tournament, even players from non-playoff teams, as the season could be pushed back.

Fasel will have a conference call Tuesday with national officials regarding the status of the tournaments and said he hopes to have a decision made by the end of the week.

IIHF| NHL World Championships

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LeBrun’s Latest: COVID-19 Tests, Potential Schedules, Drop-Dead Date

March 15, 2020 at 2:30 pm CDT | by Holger Stolzenberg 6 Comments

While it has already been discussed that the general managers held a conference call with league officials Saturday about the fluidity that surrounds the COVID-19 crisis, The Athletic’s Pierre LeBrun (subscription required) notes several other issues that have been discussed or that GMs were made aware of. Much of the conference call dealt with the memo that the NHL sent out to all the teams about what teams should and shouldn’t be doing during the suspension of play. However, there were quite a few other topics of interest:

  • So far, there have been no cases of COVID-19 among players yet, although many players have been tested recently and the league still hasn’t gotten those results back. There is a general assumption that some players will eventually test positive. While only a small percentage of the league has been tested, many more players are slowly getting tested, which means how those tests come out will play a big part in both how the league handles letting players enter team facilities and skating or working out in small groups. Sportsnet’s Chris Johnston reports that NHL teams have been told that it will be a full week, if not longer, before they can open their facilities for players.
  • LeBrun also notes that when things look to be improving (and that might be a while), the NHL expects there to be a mini-camp for teams before play resumes. How the league continues after that depends on the timing of the crisis. If the league gets back into action in 30 days, then there likely will be time to finish out the regular season. A longer suspension of the season would likely result in different scenarios, which could include a cancellation of the regular season and an extended playoff as well. However, the league hasn’t even begun to discuss scenarios.
  • Perhaps the worry that most have is whether the league has a drop-dead date in which the league would shut down for the season. The league has watched many other leagues, including most European leagues as well as the ECHL, cancel their seasons, but the league has already asked teams for their building availability through July. That would suggest that the league is ready to continue the playoffs into July. However, LeBrun believes that commissioner Gary Bettman has a drop-dead date in mind if things get out of hand. Any later in July would create other issues, which include what will happen with the 2002 Olympic Games. If the Olympics continue in August, then the NHL must decide whether they want to put their playoffs up against that. Regardless, the belief is that a decision on the season will be made by the end of April.

 

NHL| Schedule

6 comments

NHL, AHL Not Likely To Follow Same Course For Potential Return

March 14, 2020 at 8:57 pm CDT | by Holger Stolzenberg 7 Comments

While it has been clear that the AHL would follow suit to the same policies that the NHL would put in place when it came to the suspension of play and how they would operate beyond that, Sportsnet’s Chris Johnston reports that in the wake of the ECHL cancelling their season due to the COVID-19 epidemic, it’s likely that the AHL will not mirror the NHL when it comes to a potential return to the ice this season as they would have some big challenges in front of them.

Whether that means that the AHL will also cancel their season in the upcoming days is unknown. However, Johnston points out that while the NHL has the reserves and the power to push the playoffs off to the summer, if necessary, the AHL may not have that ability. The league has a number of obstacles, which includes travel and revenue issues that it would have to deal with to postpone the rest of the 2019-20 season and the Calder Cup playoffs further into the season.

The AHL has a number of upper-level teams hoping their season will continue with the Milwaukee Admirals, the Nashville Predators’ affiliate, leading the way with a league-leading 90 points this season as it hopes to get a chance to win the Calder Cup. The AHL decided to suspend their season on Thursday.

 

AHL| ECHL| NHL

7 comments

Snapshots: GM Conference Call, SHL Playoffs, Kubalik

March 14, 2020 at 5:32 pm CDT | by Holger Stolzenberg 1 Comment

NHL general managers held a conference call with the league this afternoon. TSN’s Pierre LeBrun reports that much of the call revolved around the memo that the NHL sent out Friday regarding what teams can and cannot do during this self-isolation that the league has set due to the Coronavirus. There is a chance that players may be allowed to skate at team facilities in small groups at a later date, but nothing concrete has been set.

LeBrun added that there was no discussion on a potential schedule or playoffs when the NHL lifts its suspension. It is believed that it is far too early to begin discussing potential scenarios with not enough information available yet on when the season may begin again.

  • The Swedish Hockey League reported on their own website (translation required) that due to everybody’s health and safety due to the Coronavirus pandemic, the league has requested to the Swedish Ice Hockey Association that they cancel the SHL playoffs, which would end their season. The team announced earlier this week that they had postponed the playoffs until Mar. 24, however, the league looks to be reversing course like many leagues have done in the past few days. A decision is expected on Sunday. The Swedish Ice Hockey Association is responsible for competition rules and the playoffs, which is why the SHL must clear it with them first.
  • The Athletic’s Scott Powers and Mark Lazerus reported that the Chicago Blackhawks top priority this offseason is to lock up restricted free agent Dominik Kubalik to a new contract. The 24-year-old rookie signed a one-year entry-level contract this offseason out of the NLA and has seen his career take off with a 30-goal, 46-point season so far this season. While Cale Makar and Quinn Hughes have garnered most of the attention for the Calder Trophy this season, Kubalik is right up there as well. The scribes write that Kubalik’s agent traveled to Chicago this week to discuss a contract with general manager Stan Bowman in hopes of getting a deal done soon.

Chicago Blackhawks| Coronavirus| NHL| SHL| Snapshots Dominik Kubalik

1 comment

San Jose Sharks To Play March Home Games Without Fans

March 11, 2020 at 6:36 pm CDT | by Zach Leach 5 Comments

The San Jose Sharks, who initially hesitated to comply with the three-week ban on large social gatherings put in place by Santa Clara County, have now announced that they will indeed play home games closed to the public. The team’s release states that “admission to games will be limited to home and visiting club personnel, approved credentialed media and broadcast partners, essential club and arena staff, and NHL officials.” Unlike the Columbus Blue Jackets, the team has only confirmed this restricted access policy through their March home games and not through the end of the regular season.

Fortunately, the Sharks will not miss out on that much ticket revenue if they only limit attendance for their remaining March home games. San Jose is set to host the Montreal Canadiens, Boston Bruins, and Coyotes, but that is it. The team has two additional home games in April that could be opened back up to the public.

As the fear of the spread of coronavirus intensifies, the Sharks and Blue Jackets are far from the only teams who will be playing empty arenas. Teams across multiple sports and at the major league, minor league, and amateur levels are all taking measures to mitigate the risk of the virus spreading to players and fans alike. That of course includes the AHL’s San Jose Barracuda as well, who share a building with their parent club Sharks. The Barracuda have just two home games scheduled through the rest of the month.

NHL| San Jose Sharks

5 comments

Ottawa Senators Fire CEO Jim Little

March 4, 2020 at 3:05 pm CDT | by Gavin Lee 13 Comments

3:05pm: Through Elliotte Friedman of Sportsnet, Little has released a statement on his dismissal:

I was looking forward to helping the team and the city and the Ottawa Senators. I wish the employees, the players and coaches well. They all deserve our support.

The statement made today by the team contained some language that deserves some clarification. On Valentine’s Day, the owner and I had a personal disagreement over the approach that I had been pursuing. I am a strong-willed person, and the disagreement included me using some very strong language with him over the phone, including swearing, which he did not appreciate and for which I later apologized.

It was these events, to my knowledge, which led to my dismissal. Any other inference from the statement is wrong.

9:17am: Less than two months after being hired, Jim Little is out as CEO of the Ottawa Senators. The team announced today that Little has been dismissed “as as a result of conduct inconsistent with the core values” of the team and the NHL. Little was hired for the job on January 10th, after the team went through a period without a CEO.

This is just the latest chapter in what has been a frustrating few years for the Senators, despite the strides they’ve taken to start a rebuild on the ice. Little is not the first high level employee to be let go and his departure now means the team must look for another leader for the business operations.

The last time a CEO left the Senators, they operated without one for more than a year with owner Eugene Melnyk taking on the role’s duties. It is not clear at this point if the same plan is in place this time.

NHL| Ottawa Senators

13 comments

Deadline Notes: Skjei, Parise, Targets

February 26, 2020 at 6:31 pm CDT | by Zach Leach Leave a Comment

The Florida Panthers were perhaps the most surprising team at the NHL Trade Deadline. Still competing for a playoff spot in the Atlantic Division, the Panthers nevertheless traded away a top-six forward in Vincent Trocheck and failed to acquire a defenseman, which was considered their biggest need. As it turns out, they nearly got close on a major addition. The Athletic’s Pierre LeBrun writes that the Panthers were in on defenseman Brady Skjei for much of the day on Monday. After moving Trocheck, the team had hoped to fill his departed salary commitment with a term defenseman and Skjei was the top target, made available by the New York Rangers’ extension of Chris Kreider earlier in the day. However, Florida did not want to take on all of Skjei’s contract, preferring to make a hockey deal instead. LeBrun notes that Michael Matheson would have been part of the return to New York. However, taking on salary was contrary to the Rangers’ plans, and so they went for the Carolina Hurricanes’ offer of a first-round pick instead. Skjei would have made a huge difference in Florida, arguably more than on a deep blue line in Carolina, but the Panthers could not get the deal done. Expect Florida to continue scouring the trade and free agent markets this off-season for a long-term upgrade on the blue line.

  • The biggest rumor that emerged on deadline day was a possible trade of Minnesota Wild star Zach Parise to the New York Islanders. Few expected that Parise, who at 35 years old still has five years left on his contract at over $7.5MM AAV, could be a potential trade candidate. Yet, both Parise and the Islanders’ Andrew Ladd had waived their respective trade protections and were merely awaiting the finalization of the deal. That of course never occurred, as Minnesota GM Bill Guerin stated that the deal was very complex and simply did not come together in time. Sportsnet’s Elliotte Friedman reports that the two teams have actually been discussing the deal for some time, but concerns over balancing salary and potential cap recapture penalties should Parise retire before his contract expires halted the deal, at least for now. Guerin stated that the two sides could revisit a possible trade in the off-season, but meanwhile Parise is back to work for the Wild. Twincities.com’s Dane Mizutani writes that Parise was relatively tight-lipped about the situation and understands that trades, actual or theoretical, are part of the business. He reaffirmed that he enjoys playing in Minnesota and in no way requested a trade; he was simply willing to waive his No-Movement Clause if the Wild felt that moving him was the best decision. It will remain an interesting topic through the remainder of the season and into the off-season how well Parise and the Wild play in light of this near-blockbuster and whether the trade finally does come to fruition.
  • Friedman writes that a number of players traded before the deadline nearly went elsewhere, while some players who stayed put were heavily pursued. Perhaps the most notable move could have been Robin Lehner to the Carolina Hurricanes. The Cane’s were anything but quiet at the deadline, acquiring Trocheck, Skjei, and Sami Vatanen, but failed to address goaltending, arguably their biggest need in light of recent injuries. Carolina has long been linked to Lehner dating back to the 2018 off-season (and could look at him as a free agent again this summer) but balked at the Chicago Blackhawks asking price for a rental. Two other teams that revisited players who they had previously pursued were the Calgary Flames and Edmonton Oilers. Both team made notable additions as they fight for a Western Conference playoff spot, but allegedly could have done more. Friedman notes that Calgary was in on veteran winger Wayne Simmonds for the second deadline in a row, but likely could not make the salary work, whereas Edmonton kicked the tires of Patrick Marleau after courting him as a free agent this summer. Finally, two players that received considerable interest per Friedman but did not move were Detroit Red Wings forward Luke Glendening and Philadelphia Flyers forward Scott Laughton. Detroit has little to play for this season, but have always highly valued Glendening, who has another year left on his contract. A league source told Friedman that the asking price was simply too high. As for Laughton, the Flyers made only minor moves at the deadline and could not also trade away a key bottom-six piece with term remaining on his contract. It sound as though considerable interest did not sway the team into even considering offers for Laughton.

Bill Guerin| Calgary Flames| Carolina Hurricanes| Chicago Blackhawks| Detroit Red Wings| Edmonton Oilers| Florida Panthers| Minnesota Wild| NHL| New York Islanders| New York Rangers| Penalties| Philadelphia Flyers| Players Andrew Ladd| Brady Skjei| Chris Kreider| Elliotte Friedman| Luke Glendening| Michael Matheson| Patrick Marleau

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