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Retained Salary For 2018-19

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Among the ways teams can increase the value of potential trade candidates is by retaining a portion of their salary. These moves are often used on star players who may have declined slightly and are no longer deemed worthy of their big cap hits, or at the deadline in order to fit in as many contracts as possible for the playoff stretch. Any team can retain up to 50% of a player’s salary for the remainder of the contract, though a single player can only be involved in two of these transactions per contract.

Teams meanwhile are limited to three retained salary transactions on the books at any one time, and they cannot in aggregate equal more than 15% of the cap ceiling. That means, for this season a team can retain up to $11,925,000 in salary given the $79.5MM cap ceiling. Some teams have already started in on that number given the previous retained salary transactions that they are still paying off. Below is a list of all the active contracts involved in transactions like this:

Arizona Coyotes

Mike Smith – Retained $1,416,667 per season through 2018-19

Boston Bruins

Matt Beleskey – Retained $1,900,000 per season through 2019-20

Carolina Hurricanes

Marcus Kruger – Retained $308,333 per season through 2018-19

Florida Panthers

Jason Demers – Retained $562,500 per season through 2020-21

Ottawa Senators

Dion Phaneuf – Retained $1,750,000 per season through 2020-21

Toronto Maple Leafs

Phil Kessel – Retained $1,200,000 per season through 2021-22

Vancouver Canucks

Roberto Luongo – Retained $800,000 per season through 2021-22

Vegas Golden Knights

Derick Brassard – Retained $2,000,000 per season through 2018-19

While these transactions are hardly crippling the above teams, they are something to remember when the trade deadline rolls around and clubs are trying to swap contracts. Teams like Toronto and Vancouver who have retained salary for another four years might not want to get into a similar situation and lock up two of their three possible options for the future.

The other question surrounding retained salary transactions will be how they affect the upcoming CBA negotiations, after teams like Vegas have acted as a sort of middle man. Brassard was never really part of the Golden Knights, only coming there on his way from Ottawa to Pittsburgh in order to reduce his salary for the Penguins. Though Vegas received compensation, it is not how the rule was intended to be used.

Arizona Coyotes Lack Flexibility Due To Roster Limits

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One of the CBA rules that rarely gets the spotlight of media attention, yet affects NHL organizations every year is that of the Standard Player Contract (SPC) limit. Each team is only allowed to have 50 NHL contracts on the books at any one time, including two-way contracts and players on injured or long-term injured reserve. The Arizona Coyotes currently find themselves at that limit, with 50 players already signed. That’s why the recent Marian Hossa trade included Andrew Campbell and Jordan Maletta going back to the Blackhawks, despite neither really being very valuable to an NHL team. The Coyotes couldn’t take on all three of the contracts for Hossa, Vinnie Hinostroza and Jordan Oesterle without matching with the same outgoing number.

The Coyotes do have a pair of players who likely will not count towards the 50-contract limit this season, as Barrett Hayton and Pierre-Olivier Joseph are both young enough—18 or 19 years old—to be removed from the SPC list when they are sent back to junior hockey. That of course assumes that they won’t make the Coyotes out of camp, something that isn’t necessarily guaranteed but should be expected. Even with those two added slots, the Coyotes will have to be wary of their contract totals all season long. Staying right at the limit is dangerous given that you may run into injury trouble and want to sign a veteran out of free agency or promote a player on an AHL contract. It also limits what you can do in terms of signing players out of the college ranks.

Today a list of sixteen players became unrestricted free agents after failing to reach an entry-level contract with the team that drafted them. One of those players, Jared Fiegl, couldn’t have been signed because of the Coyotes current situation even if they had wanted to. While Fiegl was just a seventh-round pick and likely wouldn’t have earned an NHL contract anyway—he has since signed with the Orlando Solar Bears of the ECHL—there are always players who deserve contracts at the end of the college season, both drafted and undrafted.

In Arizona’s system for instance, there are Ty Emberson and Cameron Crotty who will both be playing in the NCAA this season. Each a third-round pick, there is always a chance of a breakout season and the desire to turn pro in early spring. If there are no contract slots available, the Coyotes won’t be able to bring them into their system on an entry-level deal right away and run the risk of them returning to school for another season. The undrafted players pose an even bigger risk, as a team without a contract slot would be at a severe disadvantage in free agent negotiations.

Though the Coyotes are currently the only team right at the limit, there are several others who are flirting with it. The Anaheim Ducks and Vegas Golden Knights are already at 48 contracts and each have a restricted free agent left to sign in Nick Ritchie and Shea Theodore respectively. The Ottawa Senators are also at 48, and two players that could potentially come off the list in Brady Tkachuk and Alex Formenton both might not be playing in junior this season. Tkachuk could potentially go to the AHL to work with the Binghamton Senators if he doesn’t make the NHL, while Formenton already has an NHL game under his belt and might jump right to Ottawa this season.

Living on the edge doesn’t cripple a team, but it does reduce their flexibility when working out trades or negotiating with free agents. Teams like the Minnesota Wild and Toronto Maple Leafs dealt with that issue at times last year, and many others could this time around. Though it rarely gets much attention it is definitely something to keep an eye on as training camp comes around next month, and injuries start to pile up.

Over The Cap: Detroit Red Wings

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Although the St. Louis Blues are dangerously close to the salary cap ceiling and the defending Stanley Cup champs of the past three years, the Washington Capitals and Pittsburgh Penguins, are within an uncomfortable distance, the Detroit Red Wings are the only team who have surpassed the NHL’s $79.5MM limit at this point in time. When the team re-signed franchise center Dylan Larkin to a five-year, $30.5MM contract last week, his $6.1MM  salary boosted Detroit’s payroll for the coming season to $82.772MM for just 21 players. The Red Wings currently sit more than $3.2MM over the salary cap with a roster that contains just six defenseman. While the NHL CBA allows teams to surpass the cap by 10% in the off-season – up to $87.45MM – the Red Wings must clear enough space to begin the season under the cap.

Once the season is underway, the salary cap is unlikely to be much of an issue. Johan Franzen, who last played in October of 2015, has been sidelined with post-concussion symptoms for the past three seasons and is almost surely not going to return to the Detroit lineup. His $3.955MM contract on the long-term injured reserve will wipe out all of the Red Wings’ cap overages. Additionally, it remains a very real possibility that captain Henrik Zetterberg may also be on the shelf this year and possibly done with his hockey career altogether, with a nagging back injury reportedly making his availability over the final two years of his contract an “unknown”.  If Zetterberg doesn’t play, his $6MM cap hit added to Franzen’s on LTIR would give the Wings more than enough space.

However, injured reserve transactions cannot be made until after the official start of the NHL season. This has previously caused teams to trade away players unlikely to ever play again due to health, with the Chicago Blackhawks’ Marian Hossa as the latest example, even though their cap hits can be absorbed. A team tight against the cap, like Detroit, may struggle to manipulate their roster enough to fit those injured players under the cap on day one. As such, the easiest way that the team could get under the cap prior to the start of the season would be to find a taker for Franzen’s contract. The Wings would have to part with a pick or prospect, but may be able to unload the deal to a team far from the cap ceiling. If Detroit is certain that Zetterberg is also done, they could do the same with his contract, although a higher cap hit means parting with greater trade capital.

Barring an injured player salary dump, the Red Wings are likely left with the reality that they must trade a roster player in the next two months. The team may be able to sneak players like Martin Frk and Luke Witkowski through waivers before the season begins, but it would not result in enough savings to make a difference. Detroit would be unlikely to expose anyone else to waivers simply to clear space briefly. As such, it appears as if someone must go. While Red Wings fans and leadership alike might like the idea of shipping an aging defenseman like Niklas Kronwall or Jonathan Ericsson away or trying to sweet talk some team into taking on the behemoth contract of Frans Nielsen or Justin Abdelkader, it would be a surprise to see any team with interest in that foursome. The likes of Danny DeKeyser and Trevor Daley may also be immovable for a team rife with poor contracts. Instead, impending free agent Gustav Nyquist or two-way center Darren Helm are the most likely candidates, while a player like Luke Glendening heading elsewhere paired with some clever waiver action could do the trick. There is also a chance that, if he proves to be healthy, some team might be interested in Zetterberg.

It’s never a great situation for a team to be forced into trading away assets simply to become cap compliant for one day, but trading away an older player would nevertheless be a step in the right direction for a team that has never truly embraced a rebuild. Opening up salary with a trade, as well as an LTIR placement for Franzen, would allow the Red Wings some flexibility to test out some young players this season while building around their established young core, headlined by Larkin. The salary cap crunch could prove to be their ally long-term, but in the short-term the team is left with little option but to make a move and hope for the best.

Morning Notes: Gretzky, Tarasenko, Hall

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Wayne Gretzky has been named global ambassador for Kunlun Red Star of the KHL, lending his name to the development of hockey in China. The team will open a Gretzky-named hockey school for children aimed to give the next wave of Chinese hockey players added coaching and opportunity. As the NHL continues to grow its brand around the world, the “Great One” will be a big part of that movement.

This comes before the 2022 Winter Olympics are held in Beijing, a tournament that may or may not have NHL involvement. The league held its players out of the most recent Olympics, but could return to the format if a financial agreement can be worked out. Attending the Olympics is likely going to be a topic in the next CBA negotiations, which could come soon as both the NHL and NHLPA have opt-out clauses next year that could bring a work stoppage in 2020.

  • Vladimir Tarasenko was back in action yesterday, giving hope to the idea that he’ll be ready for the start of the 2018-19 season. Tarasenko injured his shoulder at the end of last season and needed reconstructive surgery, but has been cleared to skate and can even take some contact. The 26-year old sniper will be re-evaluated in September, at which point the St. Louis Blues will know if they’ll have him for opening night. The Blues have brought in several offensive players this offseason, but will still rely on Tarasenko to drive their attack.
  • Chris Ryan of NJ Advance Media spoke to New Jersey Devils owner Josh Harris about upcoming extension negotiations with Taylor Hall, who explained that it was the team’s highest priority. Hall has two years remaining on his current contract meaning an extension can be signed on July 1, 2019 at which point he could become one of the highest-paid forwards in the league. The 26-year old Hall carries just a $6MM cap hit at the moment, is coming off a Hart Trophy-winning season, and has a good shot at leading the Devils back to the playoffs again in 2018-19. The fact that an owner is willing to comment on the situation should give hope to Devils fans that the team will do everything in their power to keep Hall around for many years.

The Salary Cap Implications Of A Shea Weber Early Retirement

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When Shea Weber signed a 14-year, $110MM offer sheet from the Philadelphia Flyers in 2012, everyone knew right away that it would end badly. Yes, Weber was 27 years old and one of the top defensemen in the league, but the contract was top-heavy and carried a $7.86MM cap hit through his age-40 season. The chances of him playing to a level matching that value over a full 14 years was very slim. The Flyers knew this and specifically structured it in a way that they hoped would scare the Nashville Predators and frugal GM David Poile away – it didn’t. The Predators had just watched Ryan Suter walk in free agency and couldn’t afford to let Weber leave as well. They matched the deal and held on to their superstar defenseman.

When Weber was then traded to the Montreal Canadiens for P.K. Subban in 2016, the risk in Weber’s contract increased exponentially. The league had since banned all similarly long-term contracts – setting a limit of seven years on the open market and eight years for an extension –  nevertheless the front-loaded, cap-circumventing type that Weber had signed. To combat teams continuing to front-load contracts, the NHL implemented salary cap recapture penalties. This system punishes teams for lengthening contracts with low-salary seasons in order to lower the cap hit during prime years by issuing a salary cap charge if the player retires prior to the end of the contract, thereby negating the years that lowered his cap hit. The calculation is the difference in total salary and total cap hit over the course of the contract with which the player played with the team, divided by the number of years remaining on the contract after retirement. In Weber’s case, the scenario looks like this:

Year           Team           Cap Hit           Salary           Difference
2012-13        NSH             $7.857MM        $14MM           $6.143MM
2013-14        NSH             $7.857MM        $14MM           $6.143MM
2014-15        NSH             $7.857MM        $14MM           $6.143MM
2015-16        NSH             $7.857MM        $14MM           $6.143MM
2016-17        MTL             $7.857MM        $12MM           $4.143MM
2017-18        MTL             $7.857MM        $12MM           $4.143MM
2018-19        MTL             $7.857MM        $6MM           -$1.857MM
2019-20       MTL*           $7.857MM        $6MM           -$1.857MM
2020-21       MTL*           $7.857MM        $6MM           -$1.857MM
2021-22       MTL*           $7.857MM        $6MM           -$1.857MM
2022-23       MTL*           $7.857MM        $3MM          -$4.857MM
2023-24       MTL*           $7.857MM        $1MM          -$6.857MM
2024-25       MTL*           $7.857MM        $1MM          -$6.857MM
2025-26       MTL*           $7.857MM        $1MM          -$6.857MM

So far over the course of Weber’s contract, both Nashville and Montreal have paid him far beyond what his cap hit would suggest. If Weber was to retire today, they would both be penalized. Nashville’s total penalty is $24.572MM, while Montreal’s is fluid. However, next season marks a drop for Weber below his cap number for the remaining eight years of his contract. Now, Weber is not going to retire this off-season. However, the chances that he retires early are very high. Earlier this week, it was reported that Weber had undergone a second off-season surgery and would likely be out until mid-season. Many expected when Weber was traded to Montreal that he still had many years left of strong play in him, but it appears that the deterioration of his body has already begun. Facing a decreasing salary for the remainder of his contract and concerns about his long-term health, it would be no surprise to see Weber retire in the next two years or so nevertheless by the end of the remaining eight years. By year, here is how the penalties would play out for both Nashville and Montreal:

If Weber retires before:      Penalty per year – NSH         Penalty per year – MTL
2019-20                                          $3.51MM                                              $918K
2020-21                                          $4.1MM                                                $762K
2021-22                                          $4.91MM                                              $543K
2022-23                                          $6.14MM                                             $215K
2023-24                                           $8.19MM                                             None
2024-25                                           $12.29MM                                           None
2025-26                                           $24.57MM                                           None

Obviously, the Predators have a lot to lose if Weber retires early. It is very unlikely that Weber, if he makes it that far, is likely to retire with one or even two years left on his contract. At that point, it is likely the Canadiens would just place him on long-term injured reserve to finish his career, as has become a growing trend in the NHL. However, if Weber is unable to get over the injuries that have plagued him in Montreal, could he call it quits within the next few years and stick Nashville with a $3.5-$5MM yearly penalty? Absolutely. It is a scary possibility for the Predators and a situation worth watching as Weber battles back from injury yet again next season and beyond.

All salary and cap figures are approximations. Data courtesy of CapFriendly.com.

Bruins Notes: Free Agents, Czarnik, Injuries, Draft

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Boston Bruins GM Don Sweeney spoke with the media today from the NHL Draft Combine in Buffalo and was very up front about the team’s plans this off-season. The Bruins exceeded expectations this season with a young team that finished with one of the best records in the NHL. Sweeney has previously stated that he would like to return many of the team’s impending unrestricted free agents – Anton Khudobin, Riley Nash, Rick Nash, Tommy Wingels, Tim Schaller, Nick Holden, and Austin Czarnik – but due to salary cap restraints and a promising prospect crop in the AHL in need of opportunity, he did not expect that all would be back. Today, Sweeney went in a different direction, confirming that the team would not offer new contracts to several other free agents: Brian Gionta, Kenny Agostino, and Paul Postma. The announcement should come as no surprise, as the trio all underwhelmed in Boston this season. A late addition to the team for the stretch run and postseason, Gionta looked as if he would have been better off retiring after the Olympics. The veteran forward contributed only seven points in 20 regular season games and played in just one playoff game, in which he was a liability against the fast-paced Tampa Bay Lightning. Gionta is likely to call it quits for good this off-season. Agostino, the 2017 AHL MVP, not only made little difference in Boston with just one point in five games, but finished the minor league season in Providence with 30 points less than his MVP campaign in only one less game. Agostino will need to search for a new home for the third straight summer. Postma, while not necessarily a disappointment in Boston, ended up being of little use to the team. The relative health of the Bruins’ four right-handed defenseman and the emergence of rookie Matt Grzelcyk on the left side made Postma the #8 option for much of the year. He was unable to even retain that role after the Bruins acquired Holden at the trade deadline. Overall, Postma played in 14 games in Boston, recording just one point, before clearing waivers and being assigned to the AHL, where he played another 17 games with Providence in the regular season and postseason. The long-time Winnipeg Jets defender will be on the hunt for a more regular NHL role next year, if he can find one.

  • Sweeney briefly touched on the situation with Czarnik, which has put the Bruins in somewhat of a pickle. Czarnik, 25, played in 49 games as a rookie with Boston in 2016-17, but lost out on a roster spot this year to the likes of fellow youngsters Jake DeBrusk, Danton Heinen, Anders Bjork, and Sean Kuraly. Czarnik managed to play in ten games for the Bruins, and looked good doing so with four points, but roster restrictions forced him back to the AHL each time. In the minors, Czarnik was unstoppable with 69 points in 64 games – good enough for third in the AHL scoring race. It was an impressive performance, but still not good enough to vault Czarnik back to the top of a Bruins’ prospect pipeline that is very deep, especially at center. Ideally, the Bruins would have liked to deal Czarnik as a restricted free agent with his value at its highest. However, as a 25-year-old with three pro seasons under his belt but less than 80 NHL games played, Czarnik instead qualifies for Group 6 unrestricted free agency per the NHL CBA and is free to sign with any team. Sweeney expressed that both the team and Czarnik have not closed the door on an extension, but that he feels Czarnik is “intrigued by what may exist elsewhere”. There will surely be a market for the swift, play-making forward and a return to Boston seems unlikely.
  • Sweeney also updated the injury status of his team, revealing that banged-up checkers Schaller and Noel Acciari both underwent surgery following the season. The Bruins’ fourth line, while not much of an offensive threat, was one of the best defensively this season. However, their play began to tail off in the postseason and the major injuries for Schaller and Acciari certainly lend some explanation to that trend. The duo were just two of myriad injuries for Boston, but join only Brandon Carlo in going under the knife. Sweeney stated that the rest of the injured – Torey Krug, Zdeno Chara, Patrice Bergeron, Brad Marchand, David Backes, DeBrusk, Nash, and Nash –  will all avoid surgery for now.
  • Finally, Sweeney responded to a question about whether or not he would try to trade back into the first round of the NHL Draft next month. The Bruins sent their first-rounder to the New York Rangers in the Rick Nash deal and do not own any other team’s pick. Sweeney seemed hesitant to promise anything, saying that it is “hard” to trade back in, but did add that “you never know what some team may want to do”. In a draft class that many feels runs out of elite prospects after the first  15 or so selections, Boston may not be scrambling to trade current or future assets for a first-round pick anyway. With a late second and an early third from the Florida Panthers, the Bruins should be able to add two players with similar career projections to some late first-round picks. Even if they don’t get a future star, the Boston system is one of the best in the league with more than enough talent pushing for play time in the NHL as it is.

Bettman And Daly Discuss Expansion, Salary Cap, Playoffs And More In State Of The League Address

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NHL Commissioner Gary Bettman and Deputy Commissioner Bill Daly spoke with the media today ahead of Game One of the Stanley Cup Final to address ongoing league issues. The pair answered questions for close to an hour combined and touched on many of the most important issues facing the NHL currently:

  • Bettman clarified the situation regarding Seattle and the next round of expansion in the NHL. He began by shooting down rumors that the Board of Governors would vote on Seattle’s expansion bid at next month’s meeting. Instead, Bettman offered meetings in September or December of this year as the likely voting date. Bettman stressed that there was never any timetable for this round of expansion, so there is no delay in evaluating Seattle’s situation, but instead said that “the train just hasn’t arrived at the station on time.” However, Bettman did add that there has been “no pushback whatsoever” from the owners on adding another team and using the same Expansion Draft rules that Vegas received, so it seems that the plan to add Seattle is full steam ahead.
  • Daly addressed the expansion possibilities in Houston, stating that there have been conversations with the new owner of the NBA’s Houston Rockets, Tilman Fertitta, about potential interest. Daly admits that Fertitta is interested and did not seem to care whether a Houston team would be added through expansion or relocation. However, Daly does not believe that any such move to Houston is imminent, as the Rockets ownership group is still adjusting to owning one team, nevertheless already looking to add another.
  • In regards to recent comments from Boston Bruins owner Jeremy Jacobs, who stated that the league did not want a team in Quebec City, Bettman refuted the claim and said only that Jacobs was speaking for himself and not all of his fellow owners. It does seem that Quebec City is solidly in third, at best, among potential NHL expansion cities, but Bettman does not want to alienate a key Canadian fan base by agreeing that the league will never return to the city.
  • Bettman also addressed the situation in Ottawa, making it clear that the Senators are not for sale. Bettman stood behind owner Eugene Melnyk, as he has in the past, calling him a “committed owner”. Many Sens fans and other around the league may disagree, but the league currently seems content to let things play out in Ottawa.
  • Both Bettman and Daly confirmed that the league did not suffer an adverse effects from not participating in the Winter Olympics in Pyeongchang, South Korea. The league’s decision was highly criticized by fans, players, and corporate partners alike, but neither Bettman nor Daly expressed any regret. They said that no decision has been made about the 2022 Games in Beijing, China just yet.
  • In fact, the league must have enjoyed a strong season financially, as Daly estimates that the salary cap for the 2018-19 season will fall somewhere between $78MM and $82MM. The midpoint, $80MM, would represent a $5MM increase from this past season. Just that number would be the largest increase in the salary cap limit in a decade. This news, even just as an estimate, could drastically change the landscape of this upcoming off-season.
  • This increased profit also has Bettman optimistically talking collective bargaining. Bettman seemed pleased when discussing league finances and said he was ready to sit down and negotiate a new CBA with the players’ association at any time. The current CBA expires after the 2021-22 season, although both sides may opt out in September of 2019. Bettman seemed hopeful that the NHLPA would be ready to begin negotiations shortly to avoid any future work stoppage.
  • Bettman quickly addressed the recent U.S. Supreme Court ruling on legalized sports betting, saying that the NHL would prefer federal oversight and consistency rather than state-by-state unique betting structures. Unfortunately for him, that is unlikely given the court’s decision.
  • Bettman also briefly mentioned that the league is getting closer to having accurate player and puck tracking data readily available. This would provide a major boost to hockey analytics and player evaluation.
  • Daly added that third jerseys are on their way back to the NHL. Adidas did not make alternate jerseys this year in their first season as the NHL’s supplier, but will have them ready for next year. Daly revealed that nearly a third of the teams will have brand new third jerseys in 2018-19.
  • The most controversial comment of the night came from Daly, who said that the league feels that their current playoff format is the best ever and that no changes are on the horizon. This is totally counter to the general public sentiment this postseason.
  • Seemingly the only major topic that the Commissioner and Deputy Commissioner did not touch on is concussions. Bettman fielded one such question by simply refusing to answer, saying “I’m not going to start another news cycle”. Daly added little more, saying that it’s not Bettman’s opinion, but so far there is not enough evidence from the league’s scientists that CTE and concussions are connected. Maybe that was the most controversial comment…

Michal Kempny Fined For Cross-Checking Cedric Paquette

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Michal Kempny will not face suspension for his cross-check of Cedric Paquette in last night’s Washington-Tampa Bay game, but will get some supplemental discipline. The Department of Player Safety has decided to fine Kempny $2,419.35, the maximum amount allowed by the CBA, for the incident. Kempny was penalized on the play, in which his stick caught Paquette in the face as he was trying to box him out from the front of the net.

Notably, a very similar play with Winnipeg Jets’ defenseman Josh Morrissey earlier in the playoffs did rise to the level of a suspension. In that case, the cross-check was explained as “not a routine motion to box out an opponent” which perhaps is the difference in decisions.

Kempny will not be forced to sit out any action for the Capitals, but the fine will go into consideration in any future reviews from the DoPS. He’ll have to operate under increased scrutiny, but it’s a worthwhile trade-off for a team that has relied on Kempny as a solid midseason addition to their blue line. The teams will return to action tomorrow night in Washington.

Photo courtesy of USA Today Sports Images

The Significance Of March 1st On The NHL Calendar

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There has been quite the influx of prospect signings today as no fewer than four players have inked their entry-level contracts.  This isn’t a coincidence as March 1st is an important day on the NHL calendar that often goes under the radar.

When players sign contracts in-season, the first year of the deal has to be the current season until March 1st arrives.  Section 50.8(d) of the CBA notes the following:

No Club or Player may enter into an SPC that does not cover at least the then current League Year. The foregoing does not apply to an SPC entered into pursuant to Section 50.5(f), or to Unsigned Draft Choices or Draft Related Unrestricted Free Agents, who shall be permitted to sign an SPC during the period from March 1 through June 1 immediately preceding the League Year in which such SPC is to take effect.

As a result, today was the first day that prospects could sign entry-level deals that don’t begin until the 2018-19 campaign.  While most of the press releases announcing the signings did not state the actual term of the contract, it’s safe to assume that all of them will begin next season if the teams have waited until now to finalize the contracts.

This doesn’t mean that all entry-level deals signed from now until the end of the season will begin in 2018-19 though.  Teams are still able to sign players to contracts where the first year is 2017-18, something we’ll see in the weeks to come as NCAA free agency opens up as NHL teams looking to make their offer stand out will offer to ‘burn’ the first year of the entry-level pact.  That way, the player will get to restricted free agency one year earlier.

While the trade activity will come to a screeching halt in the coming months with the trade deadline having come and gone, there will be plenty of prospects signing these ‘future contracts’ in the days and weeks to come.

Examining Salary Cap Recapture In The Shea Weber Trade

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*This story was originally published on June 30th, 2016 just days after the trade occurred. With Weber shut down due to a season-ending foot injury in 2018, it seems relevant to bump it to the top of the site. While the injury is nowhere near career-threatening, it will obviously bring the trade back to the forefront of debate in Montreal. This piece gives additional context to the implications that trade has for both franchises.

One element that was lost in the frenzy that was Wednesday afternoon was the potential salary cap recapture repercussions for Nashville stemming from yesterday’s Shea Weber for P.K. Subban trade.  Despite the fact that Weber is gone, the Predators could still very well be on the hook for a sizable cap hit several years down the road.

The structure of Weber’s contract is now outlawed starting from the 2013 Collective Bargaining Agreement.  The overwhelming majority of his salary is paid out in the first five years of his 14 year deal with four years at just $1MM in salary tacked on at the end.  That was done, of course, to lower the cap hit.

The CBA instituted a cap recapture penalty as a way of penalizing those who, in their view, openly circumvented the salary cap by adding on years with such a low salary that it couldn’t reasonably be expected that the player would actually play out the full contract.  In Weber’s case, he makes $106MM of the salary in the first 10 years of his contract and just a total of $4MM in the final four years combined.

Simply put, the salary cap recapture calculation looks at the sum of the salary paid to the player compared to the cap hit they were charged over the same time period.  Any cap savings over that time become eligible for recapture.

In Nashville’s case, they paid $56MM in salary while accruing a total cap charge of $31,428,572.  The difference – $24,571,428 – becomes eligible for recapture.

Should Weber retire at any point prior to the conclusion of his contract in 2025-26, the Predators would be subsequently be imposed a cap recapture penalty equivalent to that amount divided by the number of years remaining on the contract.  If Weber were to retire with just 1 season left on his deal, they would have to take the entire $24+MM penalty in 2025-26.  If he were to retire with, say, four years remaining though, that total would be divided by 4, resulting in a cap recapture penalty of $6,142,857 in each of those years up until the conclusion of 2025-26.

Suffice it to say, GM David Poile is taking on a big potential risk down the road if Weber does indeed decide to retire before his contract expires.  Had Weber stayed with the Preds longer, eventually the difference between salary and cap charge would have shrunk, lowering their potential exposure to recapture.  But clearly Poile feels the reward is worth it to add Subban to an already dynamic group of defensemen in Nashville.

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