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Teams Will Receive Cap Relief For COVID-Related Suspensions

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One of the changes to the COVID protocols in the NHL for the upcoming season is the ability for teams to suspend players without pay who are “unable to participate in club activities” due to being unvaccinated.  Deputy Commissioner Bill Daly confirmed to Postmedia’s Patrick Johnston that Section 50.10(c) of the CBA will apply in this scenario which means that teams who suspend an unvaccinated player under these protocols will receive corresponding cap relief for the day(s) the players are suspended for.

Among the scenarios where unvaccinated players could be suspended are government-imposed quarantine after crossing the border or the requirement of having the vaccine to be allowed to enter an arena which has popped up in a few states with NHL teams in recent weeks.

It has been suggested that the stricter protocols including the potential for suspension without pay have played a role in the high percentage of NHL players who have currently received the vaccine – a number that’s estimated to be at roughly 98%.  With that in mind, the number of regular NHL players who aren’t vaccinated is quite low; Daly suggested to Ryan S. Clark, Mark Lazerus, and Joshua Kloke of The Athletic (subscription link) that they expect that 15 or fewer players fall under this category which means that they would be the only ones subject to this scenario.

It’s worth noting that while it could create an opportunity for teams to bank space during the season, it’d be an unwanted one as it would take a regular player out of the lineup and potentially force a recall from the AHL.  Meanwhile, teams in LTIR would be able to bring a replacement up but wouldn’t be able to bank any cap space unless they were to dip under their respective Accruable Cap Space Limit as a result of the suspension.  We’ll see over the coming months if this scenario winds up coming into play and whether it winds up having any sort of tangible salary cap impact for teams with an unvaccinated player.

Overseas Notes: Olympics, Kuhnhackl, Slepets

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Will NHL players be headed to the 2022 Winter Olympic Games in Beijing, China this year? The league’s initial schedule release suggested as much, with a break penciled in for February 7-22, but several weeks later the NHL still has yet to confirm their participation. Fortunately, the wait for a decision will not have to last much longer. NHL Deputy Commissioner Bill Daly tells ESPN’s Greg Wyshynski that the league will announce, one way or another, their intention for the 2022 Olympics by the end of the month. Wyshynski notes that multiple teams around the league had also indicated that a decision would be made in August. While Olympic participation was written in to the recent CBA extension, it was dependent on an agreement between the NHL and NHLPA and the IIHF as to terms. This has been made more difficult with the resurgent COVID-19 cases and the Games taking place in China of all places. Conversely, the league and players’ association are also concerned about the conditions that the players may be in, with Wyshynski writing that the restrictions could be even heavier than they were in the 2020 NHL postseason bubbles. If the NHL does opt to skip the Beijing Olympics, Daly confirms that the league does have a backup schedule that would fill some of the dates in that currently scheduled gap, though the logistics of such a move could be difficult for teams to manage.

  • Tom Kuhnhackl appears to be on his way out of the NHL and back to Europe. The German forward has been linked to Swedish club Skelleftea AIK, reports local source Sport Expressen. They go so far as to say that the terms of a deal have been agreed to, just not formally announced. Such a move should not come as much of a surprise. Although Kuhnhackl enjoyed a good stretch as a reliable bottom-six forward, he was unable to crack the New York Islanders lineup last season, spending the year exclusively in the AHL or on the taxi squad. As a result, the 29-year-old now heads back to Europe to take on a starring role in the SHL rather than a depth role in North America. The move will also ensure that he can suit up for Germany at the Olympics regardless of the NHL’s decision. Kuhnhackl has been stellar on the international stage for Germany in the past and will look to do so again.
  • Carolina Hurricanes prospect Kirill Slepets is not rushing to North America despite up-and-down development in Russia. The 2019 fifth-round pick has signed a one-year, two-way contract with Spartak Moscow, the team announced. An overage draft pick, Slepets is already 22 years old and after two season with KHL action, was relegated to only second-tier VHL play last season, leading some to expect he might try out a new development path. Instead, Slepets will stay put in Russia and try his luck with locking down a regular role with Spartak . A small, slippery winger, Slepets has struggled competing against the top talent of the KHL with just eight points in 43 games at the top level, but has shown his ability in the minors with 30 points in 65 VHL games. If he is to ever become a legitimate NHL prospect, especially at his age, the Hurricanes will need to see him take a major step this season or else try his hand in North America next year.

Salary Cap Increases Expected To Be Minimal Through 2025-26

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The good news is, the salary cap could increase by $1MM for the 2022-23 season. The bad news is, significant movement of the upper limit is not expected until 2026-27. Frank Seravalli of Daily Faceoff reports that the league is projecting a $4.8B hockey-related revenue for the 2021-22 season, which will actually mean the escrow debt that the players owe will actually increase. Seravalli expects there to be a $1MM increase in each of the next four offseasons as the revenues bounce back and players are able to pay off the $1.1B in debt.

When revenues dropped significantly last year, it caused a huge discrepancy in the normal 50-50 split between player salaries and owner revenues. Suddenly, players were being paid much more than their allotted half, meaning the difference would have been held in escrow. In the CBA negotiations that took place last year, the players and owners agreed to a salary deferral and fixed escrow rates, in exchange for a (relatively) flat cap until those debts—the ones caused by player salaries far outreaching 50% of hockey-related revenue—were paid back. Seravalli reports that the balance owed is expected to reach $1.1B after final accounting of the 2020-21 season.

If there are just $1MM increases in each of the next four offseasons, teams will have to be extremely careful how they spend money. Seven teams are already over the cap ceiling for next year, and though long-term injured reserve can help some of them, there’s just not a lot of wiggle room to work with. It also may explain why three teams are currently under the lower limit, with money still to spend to get to the cap floor of $60.2MM. Thirteen teams currently have cap commitments of less than $70MM for the 2021-22 season, giving them room to operate moving forward (while keeping costs down in the meantime).

A $1MM increase may seem like a good thing after three years at the same $81.5MM, but the squeeze is going to be apparent quickly as we move through the next few seasons without any meaningful change.

NHL Central Registry Rejects Philipp Grubauer’s Contract

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With the sheer volume of contracts that were filed with NHL Central Registry at the start of free agency, it has taken them some time to review them all to ensure they’re in compliance with all of the CBA rules.  Once in a while, deals are rejected because an element doesn’t meet the criteria and CapFriendly reports (Twitter link) that this is the case with the Kraken’s deal for goaltender Philipp Grubauer.  CapFriendly has the full details of the deal here.

Since more than half of the salary is paid out in the first three years of the contract ($18.5MM out of $35.4MM or 52.25%), it qualifies as a front-loaded contract which has some stricter rules than non-front-loaded deals and those rules changed when the new CBA was agreed on last year.

One of the rules for front-loaded contracts is that any salary variance from one year to the next cannot exceed 25% of the salary in the first year.  Grubauer’s salary in 2021-22 was set to be $5MM and 25% of that is $1.25MM.  Accordingly, any year-over-year variance cannot be greater than $1.25MM.  However, Grubauer’s original 2022-23 salary was $6MM and his 2023-24 salary was $7.5MM, a difference of $1.5MM.  This is what caused the contract to be rejected.

This shouldn’t be any cause for concern for the Kraken.  They just have to fiddle with the salary numbers to come up with a new agreement.  Geoff Baker of the Seattle Times reports (Twitter link) that a revised contract has already been filed that moves $250K in salary from 2023-24 to 2022-23, keeping the cap hit the same.  Technically, Grubauer is now a free agent once again but that shouldn’t last long once that revised contract is approved by the league.

July Critical Dates Calendar

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Normally, July 1st is the first day of the new league calendar year and most of the offseason events have already occurred.  However, with the delayed start to the season, most of the key summer dates haven’t occurred yet with one key exception.  CapFriendly provided a detailed list (Twitter link) of the new key target dates for this month.  Some deadlines were known while others were speculative up to this point.

Before jumping to the list, the one key event on the calendar that remained July 1st is the payment of signing bonuses.  Anyone scheduled to receive a signing bonus on the 1st will still get one today.  That means it’s a great day for players like Connor McDavid and Artemi Panarin who each received a $12MM signing bonus which represents the majority of their earnings for the 2021-22 calendar season which doesn’t even start for another four-plus weeks.  As for the rest of the dates to watch for, they are as follows:

July 13

Deadline for teams to ask players to waive their no-move clauses for the purpose of the Seattle expansion draft.
Latest possible start date for the buyout period (this could be moved up if the Stanley Cup Final ends as the window begins 24 hours after the playoffs end).

July 16

Deadline for players to accept requests to waive their no-move clauses for the purpose of the Seattle expansion draft.
Deadline for players to be placed on waivers prior to the transaction freeze.

July 17

Transaction freeze comes into effect – no trade or waiver activity permitted.  Players eligible for selection to Seattle also have a signing freeze.
Deadline for teams to submit their protection lists for the expansion draft.

July 18

NHL approval and distribution of protection lists to all teams.
Beginning of Seattle’s exclusive RFA/UFA negotiation period for all unprotected players.

July 21

Expansion Draft

July 22

End of expansion-related transaction freeze.

July 23/24

NHL Entry Draft (first round on the 23rd, remaining six rounds on the 24th)

July 26

Deadline for teams to submit qualifying offers to restricted free agents.

July 27

Expiration of contracts originally slated to end June 30th.
Buyout period ends.
RFA interview window opens for players that have received a qualifying offer.

July 28

Free agency begins.
Beginning of window for players to accept their qualifying offer.

While the beginning of the month won’t be the usual frenzy that we’re accustomed to, it won’t be long before activity starts to pick up across the league with a very busy stretch coming up in a couple of weeks.

Tampa Bay’s LTIR Usage Investigated By NHL, No Wrongdoing Found

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As could have reasonably been expected, the Tampa Bay Lightning have faced some criticism of their handling of the salary cap this season, especially as they race toward what could very likely be back-to-back Stanley Cup Championships. The Lightning employed the Long-Term Injured Reserve to keep forward Nikita Kucherov off the pay roll for the entire 2020-21 regular season, allowing them to re-sign other players and add at the trade deadline by using the entirety of his $9.5MM cap hit as added space. Then, when the postseason began and the salary cap was no longer a factor, the 2018-19 Hart Trophy winner was ready to return, looking fresh and looking no worse for wear. At best, the timing of it all was extremely lucky. At worst, it was salary cap circumvention.

Defending his team against these allegations, Tampa GM Julien BriseBois tells Sportsnet’s Josh Beneteau that the NHL did in fact investigate the club’s LTIR usage and found that they had not broken any rules.  The league had issued a warning earlier this season, with an unusually high number of teams using the LTIR, that they would be monitoring those transactions and would investigate. This was the case with Kucherov, but nothing about the Bolts’ actual transactions raised any alarms. After all, the LTIR, for all intents and purposes, is a legal form of circumvention. If other clubs are upset with how it is being used, it is an area that will need to be addressed in the next CBA negotiation in 2026.

However, the vast majority of complaints were not how the LTIR itself is structured or was used by Tampa, but rather the suspicious timing of Kucherov’s rehab lasting through the entire regular season but not into any of the postseason. BriseBois noted that this too had to be proven to the league. “We had to be able to justify the surgery, the rehab time, (and) the return to play clearance,” he told Beneteau. “Sometimes the stars align for you,” he added, qualifying what others believed to be a designed manipulation of the LTIR system. If the NHL was convinced that the timing was just right, then other teams and fans alike should be as well. BriseBois is right though – the team certainly got lucky and that luck might just lead them to another title.

Snapshots: MacKinnon, NHLPA, April Fool’s

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Nathan MacKinnon’s comical misconduct on Wednesday night drew plenty of attention at the expense of Arizona Coyotes forward Conor Garland. Even in the midst of an 8-3 blowout in his favor, the Colorado Avalanche superstar lost his head in a scrum late in the third period, grappling with Garland and then picking up his opponent’s fallen helmet and bowling it back into his face. (video) While the helmet toss itself did not appear to do much damage (and has supplied many a laugh on April Fool’s Day), it was clearly a penalty. MacKinnon was handed a ten-minute misconduct and an ejection, but most expected that he could receive some supplemental discipline for the act. Well, the NHL Department of Player Safety has handed down their decision, but it isn’t what many – especially Coyotes fans – expected or hoped for. MacKinnon has been fined $5,000 for unsportsmanlike conduct, but will not be suspended. This is the maximum fine for that particular penalty, but in the big picture means little to MacKinnon. There has been mounting scrutiny over the league’s handling of egregious penalties committed by its biggest stars and the recent leniency with MacKinnon and Connor McDavid will not help their cause.

  • The NHLPA is adding a pair of noteworthy names to its staff. The Players’ Association announced today that former NHLers Ron Hainsey and Sean Bergenheim have been hired to executive positions. Hainsey, whose hiring seemingly marks his retirement after playing last season and speaking to team’s this off-season, has been named Assistant to the Executive Director for Special Projects and Development Initiatives. Bergenheim, who hung up his skates in 2018 and last played in the NHL in 2014-15, will hold the title of  NHLPA European Affairs Representative. Bergenheim’s 506 career NHL games with four teams is impressive enough, but pales in comparison to Hainsey’s 1,132 career games with seven different teams. The NHLPA adds plenty of veteran hockey know-how with these additions, while both have held administrative roles in their careers as well. As for their specific duties with the Players’ Association, the press release describes each role as follows:

Bergenheim will work closely with NHL players from Europe, and on behalf of the NHLPA on matters relating to international competitions as well as professional hockey in Europe… Hainsey will work on a variety of matters related to the administration of the CBA, media and broadcast partners, and new opportunities for marketing and sponsorship, all with special emphasis on the enhancement of player communication within the NHLPA.

  • For a daily dose of hockey history, it is worth noting that the last time the NHL had a trade deadline date in April was in the lockout-shortened 2012-13 season. Unlike today, there were a number of April 1 trades that year as well. And it was the Calgary Flames who sadly held the title of April Fools that year. The team dealt star defenseman Jay Bouwmeester to the St. Louis Blues in exchange for prospect forward Mark Cundari, the rights to goaltender Reto Berra, and a 2013 first-round pick. Bouwmeester would go on to play at a high level for seven more seasons with the Blues, going to the postseason six times and winning a Stanley Cup, before retiring this past off-season. As for the Flames’ return? Cundari played eight games over two seasons with Calgary and then never played in the NHL again. Berra played just half a season in Calgary, posting poor numbers, before being traded away for a second-round pick. That second-rounder became Hunter Smith, who played two AHL seasons and two ECHL seasons before retiring, having never seen NHL action. And the first-rounder from the initial deal? That was used to select Emile Poirier, who played just eight games over two seasons with Calgary and is currently playing in Europe. As they say, four strikes and you’re out. This is a trade that the Flames wish had only been an April Fool’s Day prank.

Connor McDavid Fined For Elbowing

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The Department of Player Safety has determined that Connor McDavid’s elbow on Jesperi Kotkaniemi from yesterday’s action is not worthy of a suspension, but have issued a $5,000 fine. That is the maximum allowable fine under the CBA and it will keep McDavid on the ice for the Edmonton Oilers moving forward.

The incident occurred in the first period of last night’s game after the Montreal Canadiens were already up 3-0. After Kotkaniemi had passed the puck, McDavid still tried to lay a hit and extended his elbow up into the Montreal forward’s face. McDavid earned a two-minute minor for roughing and will now have to pay a fine as well.

Though he will escape suspension, the fine will go onto McDavid’s record and be taken into account for future supplementary discipline decisions. Kotkaneimi did not suffer an injury on the play.

Suspension Notes: Wilson, Carlo, Blichfeld

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So, the last time that Washington Capitals forward Tom Wilson was suspended he received a 20-game suspension. Now after a nasty hit on Boston Bruins’ Brandon Carlo, he received just a seven-game suspension. Should it have been more? How do you explain that?

Well, ESPN’s Greg Wyshynski does just that.

The scribe notes that the Department of Player Safety initially looked at the hit as a check-to-the-head incident, but decided that a boarding penalty had a better chance of earning a suspension. Even though the league has been shortened to 56 games, Wyshynski pointed out that the suspension was not pro-rated.

Even though Wilson is a repeat offender, having been suspended for two preseason games, 24 (reduced to 18) regular season games and three playoff games over his career, it didn’t mean that he was going to get a longer suspension than the 20 games he received on Oct. 3, 2018 (for his check-to-the-head of St. Louis’ Oskar Sundqvist), based on CBA rules. Rule 18.1 of the collective bargaining agreement states that “players who repeatedly violate League Playing Rules will be more severely punished for each new violation.” The Department of Player Safety doesn’t interprets that rule to mean that Wilson’s next suspension would be longer than the 20 games he received more than two years ago. Instead, it is interpreted that a repeat offender would receive a greater punishment than a first-time offender, although the fact that Wilson hasn’t been suspended for 29 months was taken into account. Hence the seven-game ruling.

  • Wyshynski also notes that while Wilson is considered a repeat offender when it comes to supplemental discipline, that wasn’t the case when it comes to money forfeited. According to the CBA, a player is no longer considered a repeat offender after 18 months without a suspension. Therefore, he only forfeited $311,782 from Saturday’s ruling. CapFriendly adds that had he been considered a repeat offender, he would have lost $645,833.
  • Samantha Pell of the Washington Post reports that despite early reports that Wilson received an in-person hearing, that wasn’t the case. Wilson waived his right to that and chose instead to participate in a standard conference call instead.
  • On the Bruins front, Carlo was taken to the hospital by ambulance Saturday night after the hit. The team announced that Carlo was released from the hospital early Sunday morning and is home resting. Head coach Bruce Cassidy said that he has spoken to Carlo and said the blueliner is feeling better. However, Carlo is expected to be out awhile, most likely week-to-week. A team that already has quite a few injury issues on the blueline, the Bruins will now bring Urho Vaakanainen into their rotation and have him play next to Jarred Tinordi on their third-pairing.
  • While no official roster moves have come from the San Jose Sharks, CapFriendly reports that forward Joachim Blichfeld, who was suspended two games for a hit on Colorado Avalanche star Nathan MacKinnon, has served his two-game suspension and returns to the team’s active roster. Whether the Sharks intend on keeping him on their roster, send him to the taxi squad or return him to the San Jose Barracuda of the AHL remains to be seen. Blichfeld was making his season debut Wednesday.

Snapshots: Penguins, Waite, Fines

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The Pittsburgh Penguins are under new leadership, so no one has a clear idea of how they will operate at the upcoming trade deadline. Still, Josh Yohe of The Athletic did his best to create a “most-likely-to-leave” list, ranking the Penguins players and evaluating their future with the organization. While Kris Letang and Evgeni Malkin remain in their own categories because of the legacy attachment to the franchise, some other rankings could raise some eyebrows.

Specifically, Yohe sees a potential trade coming for Marcus Pettersson, given the team’s left-handed depth and the young defenseman’s contract situation. Pettersson, 24, signed a five-year extension worth more than $20MM in the middle of last season, before the team brought in Mike Matheson (and his hefty contract). With John Marino’s new contract kicking in next season the Penguins have quite a bit of capital tied up on defense, which could lead to someone having to be moved out.

  • The Montreal Canadiens announced last night that Stephane Waite, the team’s goaltending coach, had been relieved of his duties and Sean Burke would take over as director of goaltending. Montreal GM Marc Bergevin confirmed to reporters including Arpon Basu of The Athletic that Waite was fired during the second period of last night’s game and the decision was not based on anything that happened recently, but a “pattern” that he had noticed. Burke was already under contract with the team through the end of the season and has not been given an extension at this time.
  • Nino Niederreiter has been fined $5,000 for his goaltender interference on Juuse Saros last night, the maximum allowable under the CBA. Niederreiter collided with Saros behind the net, making some contact with his head, and the goaltender left the game with an injury. The Carolina Hurricanes forward will avoid suspension, though this incident will be considered during any future supplementary discipline.

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