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CBA

Latest On Salary Cap Limits For 2017-18

June 14, 2017 at 1:11 pm CDT | by Gavin Lee Leave a Comment

There has been much speculation over the past few months over where exactly the upper limit of the NHL salary cap will land for the 2017-18 season. Some have claimed it will remain flat, but a new report from James Mirtle of The Athletic (subscription required) refutes that. Because of the revenue that the league has generated over the past year, Mirtle writes:

It’s important to note here that there’s actually no scenario where the cap goes down or stays flat at $73-million.

Mirtle’s sources tell him that the most likely number for the cap will be $75MM, a relatively low bump but one that could be crucial to teams already pressed to the limit. The Chicago Blackhawks for example are already projected to be over the cap by more than $4MM for next season, while others like the Ducks, Red Wings and Kings could all desperately use a few extra million to work with. It also means that the cap floor is likely to increase at least slightly, meaning teams like Carolina and Arizona, currently projected for less than the 2016-17 floor, will need to do some work to increase their payroll for next season.

The decision on the upper limit comes down to whether the NHLPA exercises its full 5% escalator as it has traditionally done. This year, as Mirtle writes, the players’ union is considering not pushing it up as far as possible because of the escrow issue that has been brought up several times. Not only is the amount of escrow players are losing off each paycheck determining this specific decision, but negotiations on a whole between the two sides when it comes to the next CBA. It has been widely speculated that the players may use their 2019 termination deadline to opt-out of the current agreement in 2020, which could potentially cause another work stoppage for the league should a new deal not be ironed out.

Either way, the expected increase in the salary cap for next season will come as a breath of fresh air for several teams hoping to make an impact in free agency this summer, and for those with several high-priced restricted free agents to sign this summer (see: Tampa Bay, Nashville). For other clubs, like Toronto and Edmonton who will have to pay their young talent over the next few seasons, any increase above $75MM would also be welcome. According to Mirtle, should the NHLPA use the entire 5% the cap would sit somewhere around $77.5MM, a large increase from last season.

CBA| Free Agency| NHLPA Salary Cap

0 comments

Snapshots: CBA, Getzlaf, Ekman-Larsson, De La Rose

May 20, 2017 at 2:50 pm CDT | by Brian La Rose Leave a Comment

While the expiration of the current Collective Bargaining Agreement is still several years away (the earliest expiration date is September 15, 2020), NHL Deputy Commissioner Bill Daly has already brought up one element that the owners will be looking to tweak.  Speaking at the Sports Lawyers Association Annual Conference, Daly told the attendees, including Liz Mullen of the Sports Business Journal (Twitter links), that they will be looking to redefine the definition of Hockey Related Revenues, more commonly referred to as HRR, which set the salary cap and floor.  He clarified that they want to make definitions more precise and that it wouldn’t necessarily mean that they would be looking to exclude (or include) certain income as part of HRR.

On the union side, Steve Fehr, special counsel for the NHLPA, noted to Mullen (Twitter link) and others in attendance that the biggest issues they intend to look at are escrow and cap management issues.  Escrow has risen sharply since being instituted to the point where some expect that the players won’t exercise their cap inflator next month in an effort to reduce the percentage that is withheld off of each pay.

CBA talks are still probably another couple of years away but we’re already starting to hear what some of the key points will be when discussions get underway.

Elsewhere around the hockey world:

  • Ducks center Ryan Getzlaf has been fined $10K for a homophobic remark uttered during Thursday’s Game Four against Nashville, the league announced. The fine is the maximum allowed under the CBA.
  • There will be two Ekman-Larssons in the Coyotes organization next season. Arizona’s AHL affiliate in Tuscon announced the signing of defenseman Kevin Ekman-Larsson to a one year, minor league contract.  He is the younger brother of Coyotes blueliner Oliver Ekman-Larsson.  The 22 year old has spent the past two seasons with Tingsryds AIF of the Swedish Allsvenskan.
  • Canadiens center prospect Jacob de la Rose is drawing interest from the SHL, he told Värmlands Folkblad’s Johan Ekberg (link in Swedish). However, the pending RFA noted that his priority is to remain playing in North America and that talks have already started with Montreal on a new contract.  He played in just nine NHL games this season, the fewest in his three years with the Canadiens.

CBA| Snapshots| Utah Mammoth Jacob de la Rose| Ryan Getzlaf

0 comments

Pending Restricted Free Agents And Offer Sheets

May 11, 2017 at 9:07 pm CDT | by Brett Barrett 2 Comments

It’s been four years since the last offer sheet in the NHL, but that hasn’t stopped the speculation surrounding them.

The past two years leave little clue to what could happen this summer. Two summers ago saw several major moves made to avoid the threat of an offer sheet, then last summer saw seven high-end players go the entire summer without a new contract with no whisper of an offer sheet.

Leon Draisaitl, David Pastrnak, Mikael Granlund, Ryan Johansen, Viktor Arvidsson, Evegeni Kuznetsov, Alexander Wennberg, and 23 more 30-plus point scorers are restricted free agents this summer. Those seven names all scored more than 59 points this past season, and would be plug-and-play options on most NHL clubs. And while the official compensation has not been reported for the upcoming season, last season it broke down this way (per Elliott Friedman):

Less than $1.23MM No compensation
$1.23MM to $1.87MM Third-round pick
$1.87MM to $3.75MM Second-round pick
$3.75MM to $5.63MM First and third-round picks
$5.63MM to $7.51MM First, second and third-round picks
$7.51MM to $9.38MM Two firsts, a second and third-round picks
Over $9.38MM Four first-round picks

The price to acquire a marquee name would realistically be two first-round picks, a second, and a third. Arguably, none of those players are in line to make more than $7.5MM on their new deals with their current clubs, but offer sheets need to be high enough to discourage the player’s club from matching, leading to overpaying players. It’s for that reason that offer sheets are so rare; no GM can afford to harm their team’s reputation among their peers (or take part in a barn fight). Additionally, offer sheets raise salaries and no team owner wants to be seen as responsible in the next CBA talks. Back in the mid-90s, Colorado Avalanche superstar Joe Sakic signed an offer sheet with the New York Rangers that raised the standard salary for NHL stars from $3MM to $7MM.

On TSN 690 in Montreal, where fans and media are speculating about a potential offer sheet for the Oilers’ big center Draisaitl, TSN Insider Darren Dreger shot down rumors. Dreger believes the Oilers know what it will likely take to sign Draisaitl and 2018-RFA Connor McDavid and are willing to sacrifice players like Jordan Eberle and perhaps even Ryan Nugent-Hopkins in order to keep their two young stars together. As mentioned above, offer sheets harm working relationships and with other big names becoming available from Edmonton for cap purposes in the coming few years, it doesn’t make sense to rule one’s team out of those discussions.

Realistically, the threat of an offer sheet is a more effective way to acquire a player. In 2015, the Bruins and Blackhawks traded Dougie Hamilton and Brandon Saad quickly to avoid being hit with an offer sheet. In the Blackhawks’ case, losing Saad for draft picks would have lead to future trades to replace him. Acquiring actual NHL players and prospects (like Artem Anisimov and Marko Dano) is more valuable than the risk associated with draft picks because the GM knows exactly what he’s getting back.

While fans and media love to speculate about offer sheets, the combination of losing several high draft picks, CBA issues, and the guarantee of harming the franchise’s reputation, it’s understandable why offer sheets are close to extinct.

CBA| RFA Offer sheets

2 comments

2020 World Cup Tied To New CBA

May 8, 2017 at 11:55 am CDT | by Gavin Lee 1 Comment

While the 2016 World Cup of Hockey wasn’t as successful as the NHL and NHLPA had hoped, it was a promising first step for a tournament that had been dormant since 2004. Now according to Gord Miller of TSN, who is commentating the IIHF World Championship currently, the 2020 tournament may be in jeopardy.

Miller tweets that the World Cup is “unlikely” should the NHLPA opt out of the current CBA—which they can do in September 2019—and don’t have a new agreement in place in time for the 2020-21 season. The 2004 tournament was followed by a lockout, a situation that will not be allowed to happen again.

There has been speculation for months (if not years) that the NHLPA will utilize their opt-out clause due to the growing concern over escrow and the NHL’s stance on the Olympics. When the NHL tried to bargain a CBA extension for Olympic participation, it was met with a resounding rejection from the players. Executive Director Donald Fehr at the time told the Canadian Press that there was “no appetite among players to extend the agreement.”

As Pierre LeBrun of TSN clarifies, neither side wants to hold the World Cup before they “turn the lights off” on a season, and have been in agreement on that part since the September tournament. It’s interesting though, that not only will the next negotiations impact league play but international competition as well. The 2019 opt-out dates—September 1st, 2019 for the league, and September 19th, 2019 for the players—will some of the most important since the last lockout to determine the future of the league.

CBA| NHLPA| Olympics World Cup

1 comment

Kovalchuk Flirting With Return?

April 23, 2017 at 9:25 am CDT | by Seth Lawrence 6 Comments

Per Elliotte Friedman, Ilya Kovalchuk is considering his possible return to the NHL. The star Russian winger left New Jersey following the shortened 2012-13 season, officially retiring from the NHL. His contract had 12 years and $77 MM remaining, ending a contract which had caused a massive headache for both the league and the Devils franchise. The initial Kovalchuk contract was determined to be cap-circumventing, one of many deals prior to the new CBA that placed extended years onto a player’s contract in order to bring the average annual cap hit down for the team. The re-organized deal was largely guilty of the same machinations, although it was accepted by league – but not before the Devils franchise was punished by losing a first and third (the former being eventually re-awarded) round draft pick. When Kovalchuk decided to “retire” merely a year after New Jersey had made the Stanley Cup Final, the contract was essentially cancelled. This was beneficial to both Kovalchuk (who looked to earn more in the KHL) and the Devils ownership (who were struggling financially), although the move was unorthodox and generally maligned. In the post-Kovalchuk era, New Jersey’s team identity was essentially lost, accompanied by the previous loss of Zach Parise and subsequent departure of GM Lou Lamoriello.

If Kovalchuk were to return, the stigma of his faux retirement will likely linger in the minds of NHL owners. If you sign the forward to an extended contract, what guarantee is there that he will honor it? The KHL will always be looming over financial negotiations, an extra competing factor general managers would be happy to do without. Then there is the matter of Kovalchuk’s age – he is now 34, and not quite in the prime  years he was when he left North America. In his last (nearly) full season, the winger amassed a ridiculous 37 goals and 43 assists – but that was 5 seasons ago.

Nonetheless, Kovalchuk has proven overseas that he is still a very effective, dynamic star. This past season with SKA St. Petersburg, he collected 32 goals and 46 assists in only 60 games, helping to lead the squad to a Gagarin Cup title. His speed has not significantly decreased, and he looks just as deadly leading a forecheck or driving the net as he did in the States. Kovalchuk, a former Atlanta Thrasher star, had been criticized early in his career for his one-dimensional offensive play. But his greater focus on the defensive aspects of his game helped carry his underdog Devils to the Finals shortly before his departure. Although the KHL admittedly plays a game tailored more to goal-scoring and creativity, Kovalchuk has seemingly maintained some of those good two-way habits.

Regardless of your feelings on Kovalchuk as a player, he would instantaneously be in the conversation for top-5 winger in the league were he to return at anywhere near the same level. Long-term contracts may prove to be a sticking point for owners, but this is the sort of player that could inspire a sweepstakes of bidding and negotiations. He is still a game-changer with incredible offensive flair and consistent production – nearly every general manager would be wise to consider making an inquiry.

CBA| KHL| NHL| New Jersey Devils Elliotte Friedman| Ilya Kovalchuk| Zach Parise

6 comments

Morning Notes: Ritchie, Bjork, Lockout

April 7, 2017 at 9:10 am CDT | by Gavin Lee Leave a Comment

The Anaheim Ducks may lose a young forward for the start of their playoff series, as Nick Ritchie has a hearing with the Department of Player Safety this afternoon to determine his fate. Ritchie attacked Michal Rozsival in their game last night after the Blackhawks’ defender sent Corey Perry to the ice. Whether the league gives him just the one remaining game in the regular season, or a match in the playoffs is yet to be seen.

Recently, Micheal Haley received just a one-game ban for a similar incident though he actually struck Calle Jarnkrok when the Predators forward wasn’t even looking. In this instance, Rozsival is looking straight at Ritchie, despite not protecting himself. The Ducks forward does not have a history of supplemental discipline with the league, though was suspended multiple times during his stint in junior hockey with the Peterborough Petes. Hopefully for Ducks fans, the league hands out the same punishment it gave Haley.

  • Fluto Shinzawa of the Boston Globe opines that the NHL’s Olympic decision could have an effect on whether or not the team can get Anders Bjork to leave school early now that Notre Dame’s dream season has come to an end. The team’s leading scorer could go back to school for one year, likely play for Team USA in the Olympics—he was born in Wisconsin—and then become an unrestricted free agent next August and decide on his NHL future. For what it’s worth, Bjork told Shinzawa’s colleague at the Globe John Connolly yesterday that he hadn’t really thought about what to do after this season yet, as he was still focused on the NCAA tournament. Notre Dame was eliminated last night at the hands of the powerhouse University of Denver 6-1.
  • Jonathan Toews spoke with Stephen Whyno of the Associated Press for an excellent piece surrounding the possibility of another lockout looming after the tension of the Olympic decision. The NHL and NHLPA are clearly not on the same page at this point, and Toews wouldn’t be surprised to see another work stoppage. September 15th of 2019 is the month that should be circled on all of our calandars, as that is when the players could opt out of the current agreement and terminate the current CBA. The league has an opt out two weeks earlier, but with them offering the Olympics for an extension, it would be unlikely to see them use the clause.

Anaheim Ducks| CBA| NCAA| NHLPA| Olympics| Team USA Jonathan Toews| Michal Rozsival

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Mitch Marner Likely To Hit All Schedule A Bonuses

April 3, 2017 at 8:44 pm CDT | by Mike Furlano Leave a Comment

Toronto Maple Leafs forward Mitch Marner hit 60 points tonight against the Buffalo Sabres, and as Sportsnet’s Chris Johnston points out, all but guarantees that Marner hits all his Schedule A bonuses to collect an additional $850K.

The CBA allows for two types of ELC bonuses, creatively called Individual “A” and “B” bonuses. “A” Bonuses are capped at an aggregate total of $850K, and “B” bonuses are capped at an aggregate total of $2MM. Thus, a player could theoretically earn up to $3.77MM in base salary and bonuses. Marner was given no Schedule B bonuses, but is eligible to obtain the max Schedule A bonuses.

Schedule A bonus thresholds are defined in the CBA as:

  • Ice Time: Top 6 Forward / Top 4 Defenseman
  • Goals: 20 FW / 10 D
  • Assists: 35 FW / 25 D
  • Points: 60 FW/ 40 D
  • PPG: .73 FW / .49 D
  • Plus/Minus: Top 3
  • Blocked Shots: Top 2 (D only)
  • Making All-Star game
  • Voted ASG MVP
  • Voted to NHL All-Rookie team

After tonight’s game against the Sabres, Marner has achieved four categories: Ice Time (4th), Assists (41), Points (60), and PPG (.83). Given that most teams award $212,500 per category, it’s almost assured that Marner has earned the max money available for Schedule A Bonuses.

CBA| Toronto Maple Leafs Mitch Marner

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Alexander Radulov And The Eight-Year Ask

March 16, 2017 at 4:09 pm CDT | by Gavin Lee Leave a Comment

After it broke last month on Hockey Night In Canada that Alexander Radulov was looking for a deal up to six-years long, many fans rolled their eyes. Sure, Radulov has had an outstanding season for the Montreal Canadiens in his return from the KHL, but it is never a good idea to give term of that length to a player on the wrong side of 30. Radulov will turn 31 in July, and will likely command upwards of $6MM per season on the open market this summer. It seemed like a bad idea, but many others wanted the team to ignore their hesitation and pay up, hoping that the current incarnation of the Canadiens could compete for a Stanley Cup over the next few years and make it worth it.

Then, when Elliotte Friedman of Sportsnet relayed that the six years might actually be the low end of Radulov’s ask, people started to laugh. Eight years? Surely Marc Bergevin wouldn’t give him something like that, not at his age. Today there was a report out of TSN that Radulov’s agent has indeed put forth an eight-year demand to the Montreal front office. While clearly that still just a starting point, and as Friedman puts it “common negotiation strategy is not to undercut yourself, so the first ask is always big,” that does seem like an absurd starting point for a player who would turn 39 a few days after they stop paying him. Alexander Radulov

So even if the eight-year ask is a starting point that Radulov is willing to come down from, let’s look at the six year bottom end as the eventual deal he’ll receive. The Canadiens currently have only two players under contract for more than the next four seasons, Andrew Shaw—who will be paid $3.9MM until 2022—and Shea Weber. Weber’s deal, signed under the old CBA, will see him cause a cap-hit of just over $7.85MM each season until 2026. That contract is often pointed to as one of the worst in the league, and it doesn’t look great, but remember that after next year the actual salary paid out drops to $6MM per season from 2018-22, and then down to just $1MM per year for the last three seasons. If Weber declines but the Canadiens need the cap space, they’ll be able to trade him to a team that needs help getting to the cap floor, without costing them much in return.

It’s something to think about with Radulov’s new deal. If structured similarly (though not exactly the same due to harsher restrictions on salary discrepancy), the Canadiens could take on relatively little risk over the final years of the deal, while paying Radulov most of the deal up front. Fans are likely much less worried about the actual salary paid to the player, than the cap-hit down the road. The Canadiens are clearly wealthy enough to do it if they so decide.

Radulov wants certainty, sure,  and no-movement clauses are included in almost all the free agent deals around the league. But as we’ve seen time and time again, they are often waived near the end of a player’s career so he can go to a better situation. Radulov would likely be no different, and the Canadiens could move him at the right price. In today’s NHL where the gap between cap-floor teams and cap-ceiling teams continues to grow through salary manipulation, big market teams like Montreal can afford to give out deals that pay a little more upfront to keep their talent around. The smaller markets benefit by acquiring draft and prospect assets when the time comes, and both find parity in different ways.

So when you hear about Radulov’s huge ask, don’t fret. As long as they play their cards right in the negotiating room, they won’t be left with a 36-year old Radulov destroying their cap situation. They’ll just be able to remember a 31-year old playmaker who made their top-line more dangerous than it has been in years.

CBA| KHL| Marc Bergevin| Montreal Canadiens| NHL| Players Alexander Radulov| Andrew Shaw| Elliotte Friedman

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2016-17 Retained Salaries By Team

March 1, 2017 at 10:49 am CDT | by Brian La Rose Leave a Comment

One of the new elements from the most recent CBA was the ability to retain salary and cap hits as part of a trade.  We’ve seen it used a lot in recent days and it will undoubtedly occur several more times before the trade deadline passes.

However, there are some restrictions to using this tool.  They are as follows:

  • No more than 50% of a player’s salary, cap hit, and bonuses (if applicable) can be retained in a single transaction. A player can only have their salary retained twice on the same contract.
  • The same percentage must be retained for salary, cap hit, and bonuses.
  • Teams can only retain up to a maximum of three contracts per season. Additionally, the sum of the amount retained can be no higher than 15% of the Upper Limit ($73MM this season).

Below are how many remaining retention spots are available for each team for 2016-17 and, where applicable, which players have had their cap hits retained as part of a trade already.

Anaheim: (2) Patrick Maroon ($500K per year through 2017-18)
Arizona: (1) Martin Hanzal ($1.55MM through 2016-17), Michael Stone ($2MM through 2016-17)
Boston: (3)
Buffalo: (3)
Calgary: (3)
Carolina: (2) Ron Hainsey ($1.42MM through 2016-17)
Chicago: (2) Rob Scuderi ($1.13MM through 2016-17)^
Colorado: (2) Cody McLeod ($533K through 2017-18)
Columbus: (3)
Dallas: (1) Ryan Garbutt ($900K through 2016-17), Johnny Oduya ($1.875MM through 2016-17)
Detroit: (1) Jakub Kindl ($360,000 through 2016-17), Thomas Vanek ($1.3MM through 2016-17)
Edmonton: (3)
Florida: (3)
Los Angeles: (2) Tom Gilbert ($280K through 2016-17)
Minnesota: (3)
Montreal: (2) David Desharnais ($700K through 2016-17)
Nashville: (3)
New Jersey: (3)
New York I: (3)
New York R: (3)
Ottawa: (3)
Philadelphia: (3)
Pittsburgh: (2) Rob Scuderi ($1.13MM through 2016-17)^
St. Louis: (2) Kevin Shattenkirk ($1.66MM through 2016-17)
San Jose: (2) Tommy Wingels ($743K through 2016-17)
Tampa Bay: (2) Ben Bishop ($1.19MM through 2016-17)
Toronto: (2) Phil Kessel ($1.2MM per year through 2021-22)
Vancouver: (1) Jannik Hansen ($500K through 2017-18), Roberto Luongo ($800,000 per year through 2021-22)
Washington: (3)
Winnipeg: (3)

^ – Both Chicago and Pittsburgh are retaining identical amounts on Rob Scuderi’s contract.

CBA

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NHL Stars Support Going To Olympics In 2018

January 30, 2017 at 2:03 pm CDT | by Brett Barrett Leave a Comment

Alexander Ovechkin, Connor McDavid, Jonathan Toews, and Sidney Crosby all agree. The NHL should go to the Pyeongchang Olympics in 2018.

Now it’s just up to NHL Commissioner Gary Bettman and IOC President Rene Fasel to hammer out a deal.

Toews told TSN’s Frank Seravalli “quite frankly, to turn on the Olympics next year and watch the hockey teams and the players representing their country — if it’s not the best in the world, I don’t know, I feel like we’re misrepresenting our sport on a pretty huge scale, on a pretty huge level.”

Toews is part of select group, including Crosby, Shea Weber, and coach Mike Babcock, who could win their third-straight Olympic gold medal in Pyeongchang. Toews believes the Olympics are on a “whole other level” than the World Cup and World Championships.

Pyeongchang would be the first chance for McDavid to represent Canada at the professional level. He told Seravalli that, after playing for Team North America at the World Cup, having a chance to represent his country “would be everything.”

“Just to get a chance to chase down a spot on the team and have that opportunity, it would be very special. But we’re very fortunate in Canada to have a long list of great Canadian players. It’d be a tough team to make.”

While the players appear to be a united front, as evidenced by the chatter at the All-Star Game, the NHL’s board of governors and owners are not in agreement. Many owners are not interested in taking a two-week break in the schedule with the potential for their superstars to come back hurt, like John Tavares did in 2014. Despite this, some owners are clearly supportive, like Ted Leonsis. The Capitals’ owner has be vocal about the players going, even saying he would allow Ovechkin to go regardless of official NHL participation.

Negotiations have not gone smoothly so far. The IOC initially said it wouldn’t cover insurance and travel costs for NHL players, but then found funds to do so. That didn’t go over well with Bettman, who said the IOC “opened a can of worms” with the NHL board of governors by appearing to not value the NHL’s participation, according to Sportsnet’s Chris Johnston.

Earlier this season, the NHL offered the Olympics to the PA as part of a deal that would see the current CBA extended by three years, but that was shot down without much consideration. The subject reportedly came up again at the board of governors’ meeting over the weekend, but talk lasted “just ten seconds.”

The NHL, it seems, would prefer to skip 2018 but return for 2022 in China. The league is already looking at hosting games in China as it looks to expand its presence in Asia.

Time is becoming an issue, as the Games are already just a year away. However, this wasn’t a problem in Turino or Sochi, writes CBC’s Tim Wharnsby, as the NHL didn’t officially agree to go until the summer before.

Despite the negativity surrounding negotiations, Crosby remains optimistic, telling ESPN’s Craig Custance that “you have to trust at the end of the day, everyone is going to work hard to make sure it can happen.”

It’s hard to imagine the NHL not going, especially with its biggest stars being so passionate about attending. Either way, the decision is approaching.

CBA| Mike Babcock| NHL| Newsstand| Olympics Alex Ovechkin| Connor McDavid| Gary Bettman| Jonathan Toews| League News| Shea Weber| Sidney Crosby| World Cup

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