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Escrow Rate Raised For The Second Quarter Of The Season

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We’re still a season away from the likely outcome of the CBA being re-opened for negotiation but some news came out on Monday that will undoubtedly play an important role in those talks. Larry Brooks of the New York Post reports (Twitter link) that the escrow rate for the second quarter of this season has been increased from 11.5% to 13.5% due to the NHL lowering its overall revenue projections.

Escrow is the amount of extra pay withheld from each paycheque.  It is withheld to help ensure a 50/50 split of Hockey Related Revenues (HRR) between the players and owners.  Once the overall HRR has been determined (a process that takes a while), a percentage of the withheld amount is then refunded to each player.

This has become more and more of an issue in recent years; as the salary cap has continued to grow, so too has the annual escrow rate while the percentage of salary lost has grown in that time.  Back in 2016, TSN’s Frank Seravalli provided an overview of the percentages withheld and refunded as well as the net salary lost by each player over the first few years of the escrow system.  The end result wasn’t pretty for the players.

As a result, the NHLPA lately has opted to lessen their annual 5% inflator to the Upper Limit in an effort to lessen the amount of escrow each season.  That strategy had been reasonably successful for a few seasons before this news came out.  The league factored that approach into their recent salary cap projection of $83MM.

This particular issue didn’t garner a lot of focus during the last CBA negotiations but that’s going to change for the next talks now that the effects of it are now known.  The NHLPA will likely want to attack this on a couple of fronts by attempting to place a ceiling on the escrow percentage while seeking to redefine HRR by pushing to include other revenue streams that are not a part of it.  For example, expansion fees such as the $500MM paid by Vegas and $650MM to be paid by Seattle are not included in HRR as things currently stand nor are potential relocation fees.

Escrow was already a hot-button issue for the players heading into the season and the news that it’s now going back up will only make it stand out to them even more.  As we get closer to September 2019 when both sides can opt out of the current CBA, expect to hear a lot more about this issue in the months to come.

Snapshots: Draft Age, Capitals, Foligno, Fowler

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Although we’re still nearly a full year away from potentially having CBA talks officially reopening, Larry Brooks of the New York Post mentions some of the early discussion points among the informal talks that have been held so far.  Perhaps most noteworthy among them is the NHL’s preference to move to a draft age of 19 instead of 18 as it is currently.  It would certainly aid in the scouting and evaluation process for teams but at the same time, it would prevent the top young players from making the jump to the NHL right away, something we’ve seen more of in recent years.  The ability to reopen the CBA comes next September and these early discussions may wind up going a long way towards determining whether a deal can be reached or if another work stoppage will be on the horizon.

Elsewhere around the league:

  • The Capitals aren’t expected to have center Evgeny Kuznetsov or winger T.J. Oshie back in the lineup on Monday in Montreal, notes Isabelle Khurshudyan of the Washington Post. Both players are dealing with head injuries and are listed as day-to-day.  Washington may have goalie Braden Holtby available though as he took part in practice with the team today after missing the past three games.
  • Nick Foligno has rejoined the Blue Jackets after missing their last game due to a personal matter, reports Aaron Portzline of The Athletic (Twitter link). After a down season in 2017-18, the winger is off to a better start this season with six goals and six assists in 19 games, good for a tie for fifth in team scoring.
  • While the Ducks were originally planning to provide an update regarding defenseman Cam Fowler today, they’ve decided to wait a little longer before providing an estimate of how long he’ll be out, notes Elliott Teaford of the Orange County Register (Twitter link). Fowler underwent successful surgery to repair multiple facial fractures but it certainly sounds like he’ll be out for a while.  That makes the news that fellow blueliner Hampus Lindholm is on injured reserve even worse for Anaheim.

Reactions To Tom Wilson’s Suspension Reduction

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When a polarizing player like Tom Wilson ends up on the winning side of a suspension appeal, the response from the masses is predictably negative. Wilson’s latest dirty hit, a check to the head of St. Louis Blues forward Oskar Sundqvist, was as bad as any in Wilson’s murky history and few batted an eye at the resulting 20-game suspension. Yet, his appeal’s final stage landed with a neutral arbitrator who took issue with the NHL Department of Player Safety’s use of a multiplier that was not rooted in the Collective Bargaining Agreement nor was it supported by precedent. Just like that, Wilson’s suspension was reduced to 14 games and he is right back on the ice tonight for the Washington Capitals. Unsurprisingly, fans, pundits, and competitors alike are not impressed with the decision:

  • One of the few happy to see Wilson back early is Washington GM Brian MacLellan and even he is treading carefully on the subject. MacLellan sat down with NHL.com’s Dan Rose and made it clear that Wilson has to change his game if he wants to stay on the ice. “We’ve talked about it numerous times,” MacLellan said, “there are certain hits that he just has to stop trying… He’s going to have to avoid some hits and he’s going to have to let up on some hits also. You can’t have the same force because he hits hard and it looks bad, and sometimes he’s going to be evaluated on the force.” For MacLellan and the Caps – who signed Wilson to a massive six-year, $31MM contract this off-season – they simply need Wilson to stay active and contribute, as they’re paying him to do. “At the end of the day, missing 15, 16 games, it can’t happen,” Wilson himself commented on the incident. The question now is whether or not MacLellan and the team can actually influence Wilson into changing his playing style.
  • One fellow player frustrated with both the process and result is Pittsburgh Penguins veteran Matt Cullen. Cullen, 42, has been around longer than virtually every other player in the NHL today and knows a thing or two about how the game operates, or at least how it should. Cullen told Jason Mackey of the Pittsburgh Post-Gazette that “When the next CBA comes up, that’s something we (should) address… I don’t think anybody is real happy with it.” Mackey points out that Cullen is unlikely to still be around when the next agreement is negotiated, but the opinion of a respected player still carries weight. Cullen is disappointed not only in the reduction of the suspension – the rival Penguins are no fans of Wilson – but more so in how it occurred. “I don’t think it’s a good look for our league, for our game to need to go to appeals… You’d like the headlines to be about the play on the ice and the players, not the other (stuff) going on outside of the game… I think most guys probably don’t love that — that it got reduced in that manner as far as going to appeal after appeal.” Interestingly, neutral arbitration is very much a player-friendly process that the NHLPA fought for. The idea is to take away any bias from the league by allowing a third party to review all of the facts independently. Yet, Cullen makes a good point that the ordeal is lengthy and not ideal optically either. Especially given that the Department of Player Safety is run mostly by former players, perhaps Cullen speaks on behalf of all players that in the next CBA they would be better off with eliminating the independent arbitrator.
  • And what of the arbitrator himself? Shyam Das has been a thorn in the side of the NHL, but likely won’t be for much longer. While an independent arbitrator, Das is employed by the league for his services. In overturning Wilson’s suspension, Das has now decided for the player in each of his three cases for the league: Wilson, Nashville Predators forward Austin Watson, and then-Calgary Flames defenseman Dennis Wideman. Each of those three cases were high-profile and concerning a sensitive subject; Wideman attacked a referee, Watson was accused of domestic assault, and Wilson is the league’s most notorious “thug”. In each instance, the NHL would have very much liked to have seen their decision hold, only to have Das contradict them. Das was fired by Major League Baseball for similarly one-sided decisions and his time with the NHL will likely end the same way.

CBA Notes: Timeline, World Cup, Fehr, Playoffs, Scheduling, Orr

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The NHL Collective Bargaining Agreement is not a topic that most hockey fans want to hear much about, as in its recent history it has become synonymous with lockouts and missed games (and seasons). Yet, it isn’t ever going away and details are already emerging about when the next round of negotiations could begin. The current CBA technically does not expire until September 15th after the 2021-22 season and can even be extended on a yearly basis after that point. However, both the league and the players’ association can opt out ahead of the 2020-21 season with notice given in September of 2019. That date is less than a year out, making discussions of the current state of NHL labor relations prevalent now even if the CBA ends up intact for many years still to come. Currently, the league is not planning to use their option in September, according to Sportsnet insider Elliotte Friedman. This is supported by claims that commissioner Gary Bettman has encouraged the NHLPA to figure out their stance as soon as possible. If the league is to hold an off-season World Cup tournament in 2020, as they did in 2016, they do not want to do so ahead of a season that could potentially be held up by a player strike. While the players have until September to make a decision on opting out of the current CBA ahead of the 2020-21 season, Friedman speculates that the league will need to know their intentions by the All-Star break this year or thereabouts if they are to begin planning the next World Cup. As Friedman notes, the international stage is very important to the players and with the NHL currently looking unlikely to attend the 2022 Winter Olympic Games in Beijing, China, the players may not want to risk their only other international experience, the World Cup. Will it be enough motivation to keep the CBA intact a while longer? We should know that answer before the end of the current season.

  • When CBA talks do finally re-open, Sportsnet’s Nick Kypreos states his belief that both sides are determined to avoid a work stoppage this time around. Although they will have to get over their recent tumultuous negotiating history, which has cost owners, players, and fans alike a season and a half since the turn of the century, as well as sort through some serious issues, the fact that both sides feel a shutdown would be a worst case scenario this time around is a positive note for everyone with a stake in the game.
  • Despite recent remarks that were inferred as signaling a coming end to his career, NHLPA Director Donald Fehr is not going anywhere, per Friedman. Fehr indicated that he would only be around for one or two more years, but walked back those comments by telling Friedman that he will stay on through the next CBA negotiation, whenever that is. The 70-year-old executive is well-respected if not feared for his hardball tactics, but has been optimistic about the next round of negotiations when approached about the topic recently. Fehr faces the tough choice of whether to opt out in 2020 (and retire sooner) or keep the peace for a couple more years instead.
  • One CBA topic gaining support is a change to playoff structure, reports Sportsnet’s Chris Johnston. However, it likely is not what many would consider to be the most pressing change. Johnston says that there is a growing movement among owners in favor of adding more teams to the playoff format. The NHL has operated with more than half of its teams making the postseason for many years now, but once Seattle joins the league as the 32nd member, that 16-team structure will now have a balance of exactly half the teams qualifying. Johnston believes that owners are in favor of a play-in structure, similar to the one recently adopted by Major League Baseball, that would hypothetically include two or four more teams to the postseason through do-or-die play-in games. Interestingly, this movement may never reach the bargaining table. Johnston notes that while some owners are in favor of this move, others, and most importantly Bettman, are happy with the current structure and are not seeking to change anything in the near future.
  • Changes to the playing schedule, particularly game times, could also be an intriguing CBA topic. Stephen Whyno of the Associated Press writes that many foreign-born NHL players are in favor of more frequent matinee games. Speaking with the Washington Capitals’ Nicklas Backstrom and Lars Eller and the Florida Panthers’ Aleksander Barkov, Whyno found that many NHL imports feel that earlier games would be far more convenient for foreign fans and could help to grow the game overseas. While the league has proven to be very invested in expanding the game in Europe and beyond, afternoon games on weekdays are an impossibility, while afternoon games on weekends in the first half of the season would pit the NHL against NFL and NCAA football far more often. The players may be fine with losing domestic television ratings in exchange for increased visibility overseas, but the league likely will not be. In need of a new TV deal in 2021, the NHL is unlikely to hurt the market value of their TV rights by expressing an interest in more frequently taking on football, the most popular sport in the United States.
  • For his part, Bobby Orr thinks that another work stoppage is likely. Orr told The Canadian Press that he would be “surprised” if there isn’t a lockout or strike before the next CBA is agreed upon, calling it a “tough” situation. “I think there are concerns on both sides… I hope there isn’t… I hope I’m wrong. We don’t need another lockout”, Orr said. Orr is not only one of the game’s greatest legends, but through his agency, The Orr Hockey Group, gleams plenty of information about the state of the league. If Orr says that it’s going to be tough, he’s probably right. The only hope is that termination can be put off a while longer and issues can be worked out in the meantime.

Snapshots: Schmidt, Versteeg, Wolski

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Vegas Golden Knights defenseman Nate Schmidt is still weeks away from making his season debut, but he’s taking his first step toward returning to normality. Schmidt, who was suspended 20 games for testing positive for a banned substance in violation of the NHL’s PED policy, opted to spend the early season in Europe. Schmidt has been practicing with the Vienna Capitals of Austria’s EBEL this month, but is now wrapping up his time with the team. Sports Illustrated’s Alex Prewitt reports that Schmidt plans to return to North America in the next week as the month of October comes to an end. With close to a month still remaining before his 20 games are up and he can return to game action with Vegas, Schmidt will not go right back to his current squad. Instead, Prewitt adds that he will join his former team at the University of Minnesota as a practice participant for a short period of time. However, Prewitt notes that the CBA allows Schmidt to join the Golden Knights in a limited capacity beginning on November 8th. At that time, he can join in team meetings and practices. November 18th, a road game against the Edmonton Oilers, will mark Schmidt’s official return to the team. While the defense has held up in Schmidt’s absence, the defending Western Conference champs are only a .500 team through eight games and the third-worst offense in the league. Schmidt, who was second among defensemen and ninth overall in points for Vegas last year, will be a welcome addition to a team that needs a spark early this season.

  • Kris Versteeg’s season overseas was short-lived. The veteran winger was unable to find NHL employment this off-season and ended up signing with the KHL’s Avangard Omsk in early September. However, NHL.com’s European insider Igor Eronko reports that Versteeg is leaving the team to return to North America. Eronko did not have any more information on the reasoning behind Versteeg’s early exit, but this isn’t the first time that the 32-year-old forward has backed out of an opportunity abroad. Versteeg signed in Switzerland back in the summer of 2016, only to terminate his contract before ever playing with the club, the NLA’s SC Bern, allegedly due to medical insurance issues. He soon after committed to a PTO with the Edmonton Oilers that turned into a contract with the Calgary Flames. Perhaps Versteeg again senses an opportunity back in the NHL and has found a way out of his KHL obligations. For his part, TSN’s Darren Dreger states that Versteeg has been sick with shingles and proffers this could be the primary reason for the departure. One way or another, Versteeg’s time with Avangard is over after just 11 games and we will soon know about about his immediate plans.
  • One player not returning to the NHL, despite some speculation, is forward Wojtek Wolski. Wolski recently terminated his contract with KHL club Mettalurg Magnitogorsk and was seeking a new place to play. That appears to be limited to either remaining in the KHL or moving to the NLA in Switzerland, rather than a return to North America, per a report from a Swiss news source. A return to the NHL for the 32-year-old Wolski, now six years separated from his last action at the highest level, was always a stretch, but many fans would not have minded seeing the Polish-Canadian star try his hand at a comeback.

Alex Biega, Marko Dano Placed On Waivers

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Two players were placed on waivers Sunday as Sportsnet’s Elliotte Friedman reports that Vancouver’s Alex Biega and Winnipeg’s Marko Dano have been placed on the waiver wire.

Dano could be an interesting player for teams looking for a winger. The 23-year-old has been unable to grab a full-time role with the Jets over the last few years and now the 2013 first-rounder will be exposed to waivers and could be a legitimate candidate for a team to grab, albeit one who has struggled adjusting to the NHL. However, a new opportunity could change everything. Dano has played 130 NHL games over the course of his career, but just played in 23 last season, putting up two goals and an assist. In 82 games with the Jets, he’s posted 10 goals and 12 assists.

Dano may have been made expendable as Nic Petan is ready to return from the non-roster list, but that hasn’t happened yet. Ken Wiebe of the Winnipeg Sun speculates that Winnipeg attempted to trade Dano, but failed to find any takers. The team opted to put Dano on waivers rather than send Brendan Lemieux to the minors.

Biega wasn’t much of a surprise as the team announced those intentions Saturday, but couldn’t put him on waivers until this morning. The team had to make room for forward Antoine Roussel and were forced to make a move, but used provision 16.12b in the CBA to make Biega a non-roster player until he could be waived. The 30-year-old defenseman has played the role of an emergency defenseman for Vancouver for a number of years as he’s appeared sporadically over the past three seasons, totaling 131 games in three seasons, while playing just 15 with the Utica Comets.

Canucks Activate Roussel, Will Carry 24 Players Until Sunday

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Vancouver Canucks general manager Jim Benning announced the team will  activate forward Antoine Roussel off of injured reserve today and will designate defenseman Alex Biega for assignment, but won’t put him on waivers until Sunday morning, meaning that the Canucks will have 24 players on their roster today.

Due to clause 16.12b of the CBA, according to the Province’s Patrick Johnson, a team that is activating a player off IR, is allowed to declare a player already on the roster, as a “non-roster” player, which is what Vancouver has done with Biega.

Roussel will get a chance to make his Canucks’ debut after the team signed him to a four-year, $12MM deal to add some grit to their bottom-six lines. The 28-year-old has been in injured reserve since the season started with concussion symptoms that he suffered during offseason training. While offense isn’t his primary role (five goals last year in Dallas), he provides the team a spark with his physical play as he racked up 126 penalty minutes a year ago and has accumulated 806 penalty minutes over his career.

The 30-year-old Biega will likely be returned to the Utica Comets of the AHL if he clears waivers. He played 44 games with the Canucks last season and but has been used as a healthy scratch so far this season.

NHL Grants Suspended Tom Wilson “Non-Roster Player” Status

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The Washington Capitals activated defenseman Michal Kempny from the injured reserve today, but it’s what they didn’t do that’s making headlines. The Capitals made no corresponding move after adding Kempny to the roster, presumably leaving them with more than the CBA-allotted 23 roster players. How this was possible sent reporters scrambling for information. What they found was both surprising and potentially dangerous.

It turns out that the Capitals had not exceeded the roster limit, as suspended forward Tom Wilson had been granted “non-roster player” status. CapFriendly relays the information from the Washington Post’s Isabelle Khurshudyan, while adding some context to what that label means. A “non-roster player” does not count against the roster, allowing the Capitals to activate Kempny by discounting Wilson. The CBA states that “non-roster player” status must be specifically granted by the Commissioner  and it is reserved for special instances of non-injury absence. Among the examples given are the birth of a child or bereavement. Notably not present is suspension and there is little precedent for suspended players being placed on this list. Granted, a suspension is a non-injury absence, but use of the “non-roster” exemption begs the question of whether teams should share in the punishment of a suspension.

Wilson’s 20-game suspension for yet another illegal check, this time to the head of St. Louis Blues forward Oskar Sundqvist in the preseason, is obviously a blow to Capitals. They won’t have their menacing power forward for the first quarter of the season, perhaps when they need him most as the defending Stanley Cup champs who everyone wants to play hard against. Yet, shouldn’t Washington also bear the weight of one of their regular players being worthy of such as suspension? Why should the team that employs a frequent offender be given a roster exemption and added flexibility while he remains out? The San Jose Sharks were given this same treatment when Raffi Torres was suspended for half of the 2015-16 season, CapFriendly reports, so the league is seemingly comfortable with using the “non-roster player” exemption for suspensions, but there are certainly reasons that they shouldn’t be.

The next question is where do they draw the line? It seems that the NHL is heading down a slippery slope by using this exemption for suspensions and could be setting a dangerous precedent. Case in point: the Capitals are enjoying Wilson’s “non-roster” status through 20 games for a dirty hit, whereas the Vegas Golden Knights have seemingly not been afforded the same luxury for defenseman Nate Schmidt’s 20-game suspension for a failed drug test on little more than a technicality. Why are the two treated differently? Why aren’t all suspended players exempt from the roster limit? The Athletic’s Scott Wheeler opines that the NHL has gone “down the rabbit hole” with this decision and now nothing is stopping every team from requesting a “non-roster player” exemption for each and every suspension. The league simply can’t go case-by-case and assign “non-roster” status behind the scenes. A can of worms has been opened and a blanket policy on the “non-roster player” status of suspended players seems to be the only solution.

Erik Karlsson: “They Probably Would Have Traded Me Anyway”

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In a spectacular interview with Sportsnet’s Christine Simpson, San Jose Sharks defenseman opens up about his exit from the Ottawa Senators and what exactly went on between him and management over the last few months. Karlsson confirms that a deal was extremely close at the trade deadline—though doesn’t give any hint on who would have acquired him—and discusses the contract offer that the Senators did make when he became eligible for an extension.

Yeah they did [make an offer]. They did. 

I don’t think it ever got to the point where I had an option to sign anything, it never even got close to that. And even if I would have signed, they probably would have traded me anyway and I would have been somewhere else. 

The Senators traded Karlsson, who was their captain at the time, on September 13th just as training camp was set to open and claimed that it was necessary for the rebuild that they are beginning. The team received a large package of assets including Chris Tierney and Dylan DeMelo, while the Sharks were happy to add Karlsson to a defense corps that already included Brent Burns and Marc-Edouard Vlasic.

Karlsson also spoke a little bit on the off-ice drama between his family and that of former teammate Mike Hoffman, explaining that no one else in the dressing room knew about the problems between them. Senators GM Pierre Dorion had claimed that the dressing room was “broken” at times last season, something that also needed to be addressed this summer.

Though the trade took quite a long time to actually be finalized, it seems as though—from Karlsson’s point of view at least—the Senators had made the decision to move on from their franchise defenseman months ago. A two-time Norris Trophy winner and one of the most dynamic players to ever play for Ottawa, he is still set to become an unrestricted free agent next offseason and could be out of the Senators’ price range altogether. Karlsson has been rumored to be after a Drew Doughty-like extension for his next deal, a contract that is worth $88MM over eight seasons. The Sharks can’t actually sign him to an eight-year deal until after this trade deadline given the current CBA, though they can certainly discuss it with him or ink a seven-year pact.

Trade Protection Around The NHL

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As we approach training camp for the 2018-19 season, the rumor mill has started to turn again and speculation has begun about potential trade deadline targets. When players like Tyler Seguin, Max Pacioretty, Erik Karlsson and Wayne Simmonds are all without much progress in extension negotiations, fans and media alike start to wonder whether they will be flipped at some point to a contender before reaching free agency. Unfortunately for many teams around the league, trades aren’t possible for certain players without their blessing. No-trade and no-movement clauses are still prevalent throughout the league, with veterans sometimes coveting them in free agency almost as much as contract term.

Remember that these clauses cannot be included in a contract until the player’s unrestricted free agent years, meaning a deal like Connor McDavid’s eight-year, $100MM pact couldn’t include any trade protection until year five despite it carrying the highest cap hit in the league. Below is the full list of clauses around the NHL for the 2018-19 season, per CapFriendly:

For ease of reading, clauses have been converted to no-trade lists based on the current 31-team NHL.

Anaheim Ducks:

Corey Perry – 30-team NTC, NMC
Ryan Getzlaf – 30-team NTC, NMC
Ryan Kesler – 30-team NTC, NMC
Cam Fowler – 26-team NTC
Ryan Miller – 24-team NTC
Patrick Eaves – 8-team NTC
Andrew Cogliano – 6-team NTC

Arizona Coyotes:

Alex Goligoski – 30-team NTC, NMC
Marian Hossa – 30-team NTC, NMC
Brad Richardson – 30-team NTC, NMC
Derek Stepan – 30-team NTC
Niklas Hjalmarsson – 20-team NTC, NMC
Dave Bolland – 20-team NTC
Jason Demers – 8-team NTC
Michael Grabner – 8-team NTC

Boston Bruins:

David Krejci – 30-team NTC, NMC
Patrice Bergeron – 30-team NTC, NMC
Brad Marchand – 30-team NTC, NMC
David Backes – 30-team NTC, NMC
Zdeno Chara – 30-team NTC, NMC
Tuukka Rask – 22-team NTC
Torey Krug – 8-team NTC

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