Predators Won’t Immediately Spend Money Freed Up By Ryan Johansen’s Contract Termination

One of the byproducts of Philadelphia’s termination of Ryan Johansen’s contract earlier this week was that it wasn’t just the Flyers that gained cap space but also the Predators.  When Nashville moved the center to Colorado last offseason, they retained $4MM of his $8MM salary in the process and the termination takes that money off the books.

Speaking with 102.5 The Game (audio link) following the Yaroslav Askarov trade, GM Barry Trotz was asked about the freed-up money.  However, don’t expect that to be spent any time soon:

I have to treat it as if it’s in escrow. I have to act like it’s not there until the final decision is made.

The final decision that Trotz references is the grievance that has already been filed on Johansen’s behalf.  It has been his camp’s contention that Johansen’s nagging hip injury means that he is too injured to play.  That injury came to light following his trade to Philadelphia and subsequent waiver clearance.  An injured player cannot be bought out of his contract so the window came and went without that happening.

However, the Flyers opted to terminate Johansen’s deal based on a material breach, declining to go into specifics about what the breach was though some have speculated it could be related to the timing of the reporting of the injury.  For the time being, that cleared $4MM off their books and Nashville’s.

But knowing that a grievance is coming, electing not to quickly spend those savings is the prudent move for Trotz.  If the full contract is restored, then they won’t be put in a spot where they have to quickly clear money out to get back to cap compliance.  Meanwhile, if there’s a settlement or only part of the contract is reinstated following the hearing, the Preds will then have ample in-season flexibility to add closer to the trade deadline.

As things stand, the Predators have a little under $3.1MM in cap space, per PuckPedia, and that’s with Johansen’s deal viewed as being on their books which is how Trotz has said he plans to operate.  A good chunk of that will go to RFAs Philip Tomasino and Juuso Parssinen so until they get a final resolution on Johansen’s situation (which will likely take a while), they likely won’t have any other moves of significance coming after what has been an already very busy summer.