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Making Your Case At An Arbitration Hearing

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With the salary arbitration figures for Tomas Tatar and Colton Parayko leaking today, it is worthwhile to take a look at what actually goes on at an arbitration hearing. Salary arbitration determines a player’s salary through a hearing governed by a third-party arbitrator. The arbitrator takes all the permissible evidence into account in deciding how much a player should be paid per year. This section outlines three key elements of that process: term, permissible evidence, and the decision.

Term

The party being brought to salary arbitration chooses whether the decision is for one or two years. If a team chooses, however, they are restricted to one year if the player is eligible for unrestricted free agent the following year.

Evidence

Parties can present witnesses, affidavits (sworn written testimony), documents, statistics, and any other relevant evidence during the hearing, subject to certain restrictions (see more below). The CBA suggests the following preferred evidence:

  • the player’s overall performance in previous seasons;
  • number of games played in context of injuries or illnesses (or lack thereof);
  • length of service in the league or with the team;
  • how much a player contributed to the success/failure of his team last season;
  • special qualities of leadership or public appeal relevant to his team responsibilities (i.e. the intangibles).
  • performance of players considered comparable to the player in question by either party; or
  • compensation of players considered comparable to the player in question by either party.

As stated above, this list is subject to certain restrictions.  The CBA prohibits parties from introducing or using the following:

  • any contract signed outside restricted free agency, including one signed after a team exercises a walk-away right;
  • any contract of a player not considered a comparable by either party;
  • any contract otherwise permissible that is signed less than three hours before the hearing starts.
  • qualifying offers;
  • the negotiation history between the parties, including any offers made;
  • testimonials, videotapes, newspaper columns, press game reports, or similar materials;
  • references to walk-away rights;
  • any award issued by an arbitrator that preceded a team exercising its walk-away rights;
  • a team or NHL’s financial condition;
  • a team’s salary cap (or floor) situation;
  • any salary arbitration award issued in ’05-’06; or
  • compensation information for salary arbitration awards issued before July 22nd 2005.

There are three main takeaways from the evidentiary rules. One, the arbitrator’s decision is based largely on a player’s stats and intangibles, and the compensation received by players with similar stats and intangibles. Two, visual evidence such as highlight reels and game tape do not factor in to the arbitrator’s decision. This makes any determination strictly fact-based. Finally, if, during a players hearing, a comparable player signs an otherwise admissible contract, that contract cannot be used as evidence by either party.

Decision

The arbitrator’s decision comes within 48 hours after the hearing closes. The decision states:

  • the contract term (one or two years as mentioned above);
  • NHL salary to be paid by the team for that term;
  • whether it is a two-way contract, and how much the player is paid in the AHL; and
  • a statement explaining the decision.

Walk Away Rights

A team may reject an arbitration decision in a player-elected salary arbitration if the award is $3.9MM or more per year. That threshold increases by the same percentage rate that the average league salary increases.

A team does not have unlimited walk away rights. Rather, the number of times a team can reject a decision is tied to the number of decisions issued. A team facing up to two decisions has one walk away right. A team facing three of four decisions has two walk away rights. Finally, a team facing five decisions has three walk away rights.

The consequences of rejecting a decision depends on whether the club elected a one or two year term. If the decision is for a one year term, the player immediately becomes an unrestricted free agent. If the decision is for a two year term, the player and team enter into a one year contract for the salary awarded. The player becomes an unrestricted free agent at the end of that year.

Blue Jackets GM Talks Roster Moves

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Columbus Blue Jackets GM Jarmo Kekalainen spoke to the team’s radio play-by-play announcer BobMcElligott today about the Blue Jackets’ offseason, touching on roster moves, trade rumors, and the upcoming season.

On the Panarin-for-Saad deal, where Columbus traded Brandon Saad back to the Chicago Blackhawks for Artem Panarin, Kekalainen said that he was looking for a “game-breaking type of player,” and one “who can win you the tight games.” Most importantly, the GM said, was Panarin’s one-on-one skill that creates offense by itself.

On coach John Tortorella, Kekalainen emphasizes that the coach has a “great feel for what each player is all about,” but will get frustrated if a player lacks work ethic, stating that “Tortorella does not like players who don’t work hard.” The GM then intimates that Tortorella may not be the only organizational member who thinks that way.

On the expansion draft deals, where Columbus made moves to protect their young prospects, Kekalainen explains that his prospects were too valuable to lose. Because Columbus could lose one of three important young players, the team had to either trade all three, or find a way to protect them. The team ended up losing William Karlsson, but kept the likes of Josh Anderson, Ryan Murray, David Savard, and Joonas Korpisalo.

Finally, on free agency, Kekalainen states that the team would rather build from the draft than to sign key players as free agents. Columbus is not known as a hot free agent market, and they have not historically been a big player for elite free agents. The GM also expects last year’s 3rd overall pick Pierre-Luc Dubois to challenge for a roster spot at camp.

Lightning Sign Michael Bournival

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Tuesday: The team has officially announced the signing.

Friday: The Tampa Bay Lightning have signed RFA forward Michael Bournival to a one-year, two-way deal worth $650K at the NHL level, reports TVASports’ Renaud Lavoie. The 25 year-old forward was arbitration eligible.

The former 3rd round pick in 2010 has bounced between the AHL and NHL in his short career. Originally drafted by the Colorado Avalanche, Bournival was traded to the Montreal Canadiens for defenseman Ryan O’Byrne. He did not receive a qualifying offer from the Canadiens after the 2015-16 season, and signed with the Tampa Bay Lightning in the offseason as a free agent.

Last season he put up 2G and 1A in 19 games for the Lightning, and 9G and 10A in 38 games for the AHL Syracuse Crunch. He scored an additional 8G and 7A in 22 playoff games for those same Crunch. With 108 career NHL games under his belt, time is running out for Bournival to make an impact at the NHL level. The Lightning do not seem to have room for a player to make the team out of camp, so Bournival will have to capitalize on any mid-season call-ups.

Top Ten Remaining UFAs

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Before NHL free agency opened up this summer, PHR published a list of the top-50 NHL UFAs. Two weeks into the offseason and the majority have signed deals—leaving 18 out of 50 still looking for a new NHL contract.  Below are the top ten players still on the market:

[initial writeups credited to PHR’s Gavin Lee]

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Coyotes Seeking Short-Term Deal With Duclair

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The Arizona Coyotes are seeking a one or two-year deal with embattled prospect Anthony Duclair, Sarah McLellan of AZCentral reports. Duclair is currently an RFA without arbitration rights. He was initially taken 80th overall in the 2013 Entry Draft, and electrified fans with a surprise breakout rookie campaign.

Duclair had a tumultuous sophomore season as his play dropped precipitously from his rookie year, and he became the subject of rampant trade rumors. The Coyotes eventually demoted Duclair to the AHL Tucson Roadrunners in the hopes that he could regain his scoring touch. Duclair finished the season with 5G and 10A in 58 NHL games, and 1G and 7A in 16 AHL games. The former 3rd round pick broke into the NHL with 20G and 24A in 81 games, and the Coyotes hope he can return to that level.

A short-term deal could be in the best interest of both player and organization. Duclair could accept a one-year “prove-it” deal and hope that his play rebounds enough to garner a more lucrative contract next season. The 21 year-old is only one year removed from his stellar rookie season.

Valeri Nichushkin Hopes To Return To Stars In 2018-19

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Russian forward Valeri Nichushkin expects to play for the Dallas Stars in 2018-19, reports Mike Heika of the Dallas News. He currently plays for CSKA Moscow in the KHL and will finish out the final year of his contract with the Russian club.

The Stars still retain Nichushkin’s rights as he left for the KHL after finishing his ELC contract, so he is still considered an RFA by the NHL. Nichushkin is valued enough by the Stars that they protected him in this summer’s expansion draft.

This season, Nichushkin scored 11G and 13A in 36 games for CSKA Moscow, and an additional 1G and 4A in the playoffs. In his last season with the Stars (2015-16), Nichushkin netted 9G and 20A in 79 games. The Stars obviously value him enough to protect him, and if he returns as a more-developed version of himself, it is a win-win for both player and organization. The player receives more playing time in his native country rather than limited NHL minutes—or riding the bus in the AHL—and the team has its asset develop without incurring salary expenditures or a salary cap hit.

 

Donald Fehr Addresses Salary Caps, Contracts, And More

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NHLPA Executive Director Donald Fehr spoke to media during the NHLPA’s annual charity golf tournament this week. Fehr answered numerous questions regarding the salary cap, player contracts, and the Olympics.

At the outset, Fehr reiterates that the PA is against any form of salary cap, and that its presence hinders player salary growth. Fehr points out that Major League Baseball continues to function successfully without any salary limitations.

Fehr then addressed how the NHLPA deals with players potentially leaving money on the negotiating table. This question stems from the rumor that Connor McDavid walked back a $13.25MM AAV contract to one that pays him $12.5MM AAV. Fehr states that money is just one factor in contract negotiations, and the top-dollar amount is not always the main concern.

Regarding the Olympics, Fehr tells reporters that national pride drives players to play in international events, but did not expand on the PA’s position regarding player participation next season. Fehr did admit that the PA wants a series of international events just like the NHL. In the same international play vein, Fehr also admits that players have not been fully paid for the World Cup of Hockey. Prize money and stipends were handed out, but the rest of the revenue required complete accounting before distributing the players’ share.

Finally, Fehr addresses the revenue and salary gap between the NHL and NBA. The NHL, says Fehr, used to be only 20% behind the NBA in revenue numbers, but now lags behind significantly. As for player salaries, Fehr acknowledges that individual NBA players can affect the game more than an individual NHL player.

 

San Jose Sharks Sign Goaltender Josef Korenar

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The San Jose Sharks signed undrafted goaltender Josef Korenar to a standard entry-level contract, NHL.com reports. It is a three-year deal worth $726K a year, according to CapFriendly.com.

Korenar is a 19 year-old goaltender out of the Czech Republic, but played in Lincoln, Nebraska last season for the Lincoln Stars in the USHL. Sharks Assistant GM Joe Will said that Korenar is a “goaltender that has been on our radar for a while now,” and that they “strongly considered drafting him in the 2017 NHL Draft.”

The Sharks now have three minor league goaltenders under contract, including recent signing Antoine Bibeau, and veteran Troy Grosenick. Up in the big leagues they Aaron Dell backing up starter Martin Jones, but Dell’s backup position could be in peril with an impressive camp performance from one of the aforementioned minor league goaltenders.

Snapshots: Sabres, Jagr

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News and notes from around the NHL this evening:

  • New Buffalo Sabres GM Jason Botterill spoke to media following the conclusion of the Sabres’ development camp, and says the team is still looking for UFAs, reports Jourdon LaBarber of NHL.com. Botterill says that the team weighs whether to add a player via free agency, or wait and see if something materializes trade-wise. Botterill’s position represents every GM’s quandary in the off-season as no GM wants to miss out on a trade opportunity after filling a need with a higher-priced UFA. But at the same time, no GM wants to be waiting so long that they paint themselves in a corner and their options dwindle to nothing.
  • Staying with the Sabres, the team’s top priorities right now, according to LaBarber, are signing its RFAs. Robin Lehner remains the team’s most important RFA available, and as of now has an arbitration date for July 27, 2017. Most—if not all—players come to deals before the actual arbitration hearings, so expect both parties to agree to terms before then.
  • The ECHL Florida Everblades extended a roster spot offer to legendary NHL veteran Jaromir Jagr. While this was done mainly for publicity reasons and slightly tongue-in-cheek, the team does offer a variety of enticing benefits for Jagr. The team would allow Jagr to play only Friday and Saturday home games, the #68 jersey, the potential to see an alligator in the pond next to the arena, and a sleeper bus stocked with Diet Coke and muffins.

Who’s Playing On Another Team’s Dime?

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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.

  1. A team can retain up to 50% of a player’s average salary (including bonuses);
  2. The retained salary amount is uniform over the full length of the player’s contract;
  3. A team can retain up to three players’ salary at one time;
  4. A team cannot have more than 15% of the salary cap devoted to retained salary;
  5. A team cannot retain salary on a player who is already subject to two current retained salary transactions;
  6. 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;
  7. 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);
  8. Retained salary obligations apply to any cap advantage recapture amounts; and
  9. 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).

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