Headlines

  • Islanders Sign Maxim Shabanov
  • Blues Waive Nick Leddy
  • Nikolaj Ehlers Expected To Sign Today
  • Oilers Sign Andrew Mangiapane To Two-Year Deal
  • Hurricanes Acquire K’Andre Miller In Sign-And-Trade With Rangers
  • Alex Delvecchio Passes Away At Age 93
  • Previous
  • Next
Register
Login
  • MLB Trade Rumors
  • Hoops Rumors
  • Pro Football Rumors

Pro Hockey Rumors

  • Home
  • Teams
    • Atlantic
      • Boston Bruins
      • Buffalo Sabres
      • Detroit Red Wings
      • Florida Panthers
      • Montreal Canadiens
      • Ottawa Senators
      • Tampa Bay Lightning
      • Toronto Maple Leafs
    • Central
      • Chicago Blackhawks
      • Colorado Avalanche
      • Dallas Stars
      • Minnesota Wild
      • Nashville Predators
      • St. Louis Blues
      • Utah Mammoth
      • Winnipeg Jets
    • Metropolitan
      • Carolina Hurricanes
      • Columbus Blue Jackets
      • New Jersey Devils
      • New York Islanders
      • New York Rangers
      • Philadelphia Flyers
      • Pittsburgh Penguins
      • Washington Capitals
    • Pacific
      • Anaheim Ducks
      • Calgary Flames
      • Edmonton Oilers
      • Los Angeles Kings
      • San Jose Sharks
      • Seattle Kraken
      • Vancouver Canucks
      • Vegas Golden Knights
  • About
  • Advertise
  • Contact Us
  • Partners
    • MLB Trade Rumors
    • Hoops Rumors
    • Pro Football Rumors
Go To MLB Trade Rumors
Go To Hoops Rumors

Long-Term Injuries Represent Continued Opportunity For Cash-Rich Teams

September 14, 2020 at 5:03 pm CDT | by Gavin Lee 1 Comment

The NHL’s salary cap ceiling will be $81.5MM for 2020-21 and will not increase until the league’s hockey-related revenue surpasses $3.3 billion once again. Even then, the number will grow slowly as the difference in escrow is slowly paid off. Despite that cap being the theoretical number that teams can spend to, many around the league will be icing rosters that are quite a bit cheaper.

Frank Seravalli of TSN reported just a few days ago that the Buffalo Sabres, Arizona Coyotes and Pittsburgh Penguins could all be operating with an internal budget much lower (with the Coyotes perhaps going “just south of $70MM”). They aren’t the only three, which could potentially open up even more opportunities for cash-rich organizations that have strong financial backing. Not only will they be able to bring in a roster that adds up to the salary cap ceiling, but players that are earning more money than their cap hits in 2020-21 could potentially be available in trade at a bargain price.

The other opportunity is one that has existed for some time but could be amplified this offseason: long-term injured reserve.

For years now, teams have traded in “dead contracts” in various situations. Trading for players who are under contract but will never play again has been a routine occurrence for teams like the Coyotes and Toronto Maple Leafs—though the two use those opportunities in very different ways. The Maple Leafs have used a strong financial situation to take on the contracts of players like Nathan Horton and David Clarkson, giving them a bit more flexibility when it comes to the salary cap. No, these dead contracts are not just bonus cap space as some imply, but they can create some creative ways to provide wiggle room around the hard cap.

It’s hard to use this to your advantage when you’re already working on an internal budget, especially with contracts that are not fully insured. But for those teams still able to flex their financial might, there will be some obvious candidates this offseason should they want to pursue these LTIR opportunities and can figure out a way to make it benefit their individual situation.

Ryan Kesler has two seasons remaining on his contract with the Anaheim Ducks, which is set to pay him $6.675MM annually. The 36-year-old forward is not expected to play again thanks to multiple hip surgeries, which ended his playing career in 2019 after he battled through pain to reach the 1000-game mark. Kesler does have a full no-movement clause for this season (which will switch to an eight-team no-trade clause in 2021), but that has been worked around in past transactions like this.

The Coyotes themselves still have Marian Hossa on the books for one more season at a $5.275MM cap hit, though his actual salary is still just $1MM for 2020-21. Hossa hasn’t played since a skin condition forced him into retirement in 2017 and could potentially be used as a trade chip if another team is looking for help reaching the salary cap floor this year. Henrik Zetterberg, is another player whose salary is just $1MM in 2020-21, though he carries a $6.08MM cap hit. The Red Wings have moved on from legendary players in this situation before, trading Pavel Datsyuk’s dead contract to the Coyotes in 2016.

Marian Gaborik is much the same, having last played in the 2017-18 season with the Ottawa Senators. The 38-year-old Gaborik is still under contract for next season and carries a $4.875MM cap hit, but is owed just $3.075MM in actual salary. According to a Postmedia report from 2018, approximately 80% of Gaborik’s salary is covered by insurance, making it an inexpensive way for the Senators to build up their commitments, but that doesn’t mean he won’t be used in a deal to get him completely off the books this summer.

One of the newest additions to this retired-but-still-active group is Brandon Dubinsky of the Columbus Blue Jackets, who missed all of the 2019-20 season with a chronic wrist injury. That injury is expected to keep him from ever playing again, but he is still owed $5.85MM for the 2020-21 season.

Of note, the Maple Leafs, who have been the team most notably acquiring these heavy LTIR contracts, will see both Clarkson and Horton come off the books this offseason. That doesn’t by any means indicate that they will go this route again, but don’t be surprised if you see some movement this offseason on players that will never actually hit the ice in an NHL game again.

Photos courtesy of USA Today Sports Images

Share 0 Retweet 0 Send via email

Injury Brandon Dubinsky| Henrik Zetterberg| Marian Gaborik| Marian Hossa| Salary Cap

Contract Notes: Miller, Thompson, Gallagher
Main
U.S. Hockey Hall Of Fame Announces 2020 Class
View Comments (1)

Comments

  1. 66TheNumberOfTheBest

    5 years ago

    FTR, after the report that the Pens were cutting salary there was another report that that first report was incorrect and that they would remain a cap team.

    I’m not in the budget meetings and both reporters involved are terrible, so…who knows.

    Reply

Leave a Reply Cancel reply

Please login to leave a reply.

Log in Register

    Top Stories

    Islanders Sign Maxim Shabanov

    Blues Waive Nick Leddy

    Nikolaj Ehlers Expected To Sign Today

    Oilers Sign Andrew Mangiapane To Two-Year Deal

    Hurricanes Acquire K’Andre Miller In Sign-And-Trade With Rangers

    Alex Delvecchio Passes Away At Age 93

    Sabres Sign Ryan McLeod To Four-Year Deal

    Rangers, Will Cuylle Agree To Two-Year Deal

    Kings Sign Cody Ceci, Brian Dumoulin, Anton Forsberg

    Ducks Sign Mikael Granlund To Three-Year Deal

    Recent

    Brent Burns Signs One-Year Deal with The Avalanche

    Senators Sign Forward Hayden Hodgson, Goaltenders Hunter Shepard and Jackson Parsons

    Kings Sign Samuel Bolduc, Logan Brown, Cole Guttman

    Canucks Sign Defenseman Pierre-Olivier Joseph

    Jets Sign Gustav Nyquist

    Flames Sign Morgan Frost To Two-Year Extension

    Islanders Sign Maxim Shabanov

    Blues Sign Pius Suter To Two-Year Contract

    Golden Knights Sign Kaedan Korczak To Four-Year Extension, Jeremy Davies To Two-Year Deal

    Red Wings Sign Mason Appleton To Two-Year Deal

    Rumors By Team

    Rumors By Team

    • Avalanche Rumors
    • Blackhawks Rumors
    • Blue Jackets Rumors
    • Blues Rumors
    • Bruins Rumors
    • Canadiens Rumors
    • Canucks Rumors
    • Capitals Rumors
    • Devils Rumors
    • Ducks Rumors
    • Flames Rumors
    • Flyers Rumors
    • Golden Knights Rumors
    • Hurricanes Rumors
    • Islanders Rumors
    • Jets Rumors
    • Kings Rumors
    • Kraken Rumors
    • Lightning Rumors
    • Mammoth Rumors
    • Maple Leafs Rumors
    • Oilers Rumors
    • Panthers Rumors
    • Penguins Rumors
    • Predators Rumors
    • Rangers Rumors
    • Red Wings Rumors
    • Sabres Rumors
    • Senators Rumors
    • Sharks Rumors
    • Stars Rumors
    • Wild Rumors

    Latest Rumors & News

    Latest Rumors & News

    • 2025’s Top 50 Unrestricted Free Agents
    • Sam Bennett Rumors
    • Nikolaj Ehlers Rumors
    • Mitch Marner Rumors
    • Marco Rossi Rumors

    Pro Hockey Rumors Features

    Pro Hockey Rumors Features

    • Support Pro Hockey Rumors And Go Ad-Free
    • 2025 Free Agent Focus Series
    • 2025 Offseason Checklist Series
    • 2025 NHL Free Agent List
    • 2026 NHL Free Agent List
    • Active Roster Tracker
    • Coaching Staff Directory
    • Draft Pick Tracker 2025
    • Key Offseason Dates
    • Offseason Trade Tracker
    • Pro Hockey Rumors On X
    • Pro Hockey Rumors Polls
    • Waiver Claims 2024-25

     

     

     

    Navigation

    • Sitemap
    • Archives

    PHR Info

    • About
    • Privacy Policy
    • Commenting Policy

    Connect

    • Contact Us
    • Twitter
    • Facebook
    • RSS Feed

    Pro Hockey Rumors is not affiliated with National Hockey League, NHL or NHL.com

    scroll to top

    Register

    Desktop Version | Switch To Mobile Version