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NHL General Managers Could Discuss Closing LTIR Playoff “Loophole”

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Next week holds in store an NHL general managers’ meeting in Manalapan, Florida, and Daily Faceoff’s Frank Seravalli reports that the agenda may include a discussion around altering the long-term injured reserve “loophole” used by teams to build legal, but non-salary-cap-compliant rosters for the Stanley Cup Playoffs.

As it stands, teams are allowed to gain cap relief from players on injured reserve for the end of the regular season before the salary cap disappears for the playoffs, then bringing those players back once healthy for playoff runs. It theoretically allows teams to exceed the hard cap by several millions of dollars during the playoffs due to the salary cap not being in effect at the end of the regular season. Seravalli says at least one general manager has requested that this be included on the meeting’s agenda, with that GM believing “strongly that wasn’t the intended spirit of the CBA when it was written.” It’s a rule that’s been taken advantage of by multiple Stanley Cup-winning teams in the past, including the Tampa Bay Lightning in 2021 with Nikita Kucherov and the Chicago Blackhawks in 2015 with Patrick Kane.

The anonymous general manager cited in the article doesn’t think a complex solution is required to fix this inequity, however. While they don’t advocate for overall financial roster limits, they put forth a proposal that the 20-man roster on the ice for each team during a playoff game can’t exceed the salary cap. This would provide a boost to essentially all playoff teams, considering that during the regular season, any healthy scratches or players on regular injured reserve count against the salary cap as well. It gives teams flexibility, allowing them to make roster decisions freely during the playoffs among healthy players within the constraint of a combined $81.5MM cap hit for the on-ice lineup.

However, as Seravalli notes, any modification to this rule requires negotiation with the NHLPA, as it constitutes a “material change” to the Collective Bargaining Agreement.

While no surefire playoff team this season is taking advantage of this loophole in earnest, it was widely assumed the Vegas Golden Knights’ playoff lineup would benefit from this ability due to captain Mark Stone’s long-term back injury that’s expected to keep him out through the regular season. Now, with additional injuries continuing to pile up for the Knights, it’s feasible the team misses the playoffs entirely.

NHL Announces More Postponements

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The NHL has officially announced the temporary formation of taxi squads and three additional postponements. The following games will be rescheduled for later in the season:

  • Columbus Blue Jackets at Chicago Blackhawks, December 28
  • Pittsburgh Penguins at Toronto Maple Leafs, December 29
  • Boston Bruins at Ottawa Senators, December 29

The other games scheduled for Tuesday are set to play as originally planned, though there will be continued testing that could change that. Frank Seravalli of Daily Faceoff writes that more players are expected to be placed in the COVID protocol tomorrow when test results have been confirmed.

In addition to the postponements, the league has officially revealed the new taxi squad rules. As previously reported, they will be in place from today through each team’s final game prior to the All-Star Break. It will have a maximum of six players at any time, will be subject to normal waiver requirements and no player may spend more than 20 cumulative days on the taxi squad.

There have also been temporary modifications to the CBA, allowing some salary cap relief for clubs dealing with COVID absences. Roster Emergency Exception recalls are now allowed to be players with a cap hit of up to $1MM (previously it had been limited at $850K). Teams can now recall a goaltender under emergency conditions–i.e. if they have fewer than two goaltenders on the active roster–without playing a game short. That means we won’t continue to see EBUGs pop up around the league (or at least not as often).

The full changes can be found here.

Gary Bettman: Olympic Participation “Ultimately A Players’ Decision”

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The NHL has more than a few concerns about participating in the upcoming Winter Olympics in Beijing, China. Speaking with the media, including CBC’s Joshua Clipperton, following the conclusion of Friday’s Board of Governors meeting, Commissioner Gary Bettman didn’t shy away from expressing his hesitations either:

We have real concerns on a whole host of issues… We have concerns, and we’ve expressed those to the players’ association… Our concerns have only been magnified… I actually find it difficult to believe that a player would want to go…. I don’t think that this is going to be the ideal Olympic experience in terms of the lockdowns in the Olympic Village and everything else that’s going on.

The league’s apprehension is based mostly on the continued issues with the spread of the Coronavirus, not only across the league but on a global basis, China included. The NHL has seen the majority of its teams impacted by COVID-19 already this season, including at the cost of some games. Olympic participation would mean sending its biggest stars off, out of the protection of the league’s protocols and to the origin point of the virus and to protocols that have yet to be finalized and announced. In that same vein, Bettman discussed the possibility that China could mandate a three-week quarantine for any athletes who test positive for COVID and stated that he would be surprised if any NHLer would risk an additional three weeks in the country in order to play at the Olympics. Beyond the COVID conversation, there are also a number of political red flags as the governments of both Canada and the United States have become more vocal of late about the human rights violations taking place in China.

Yet, with all that said, Bettman is standing by his word. Barring a joint decision between the NHL and NHLPA – with Deputy Commissioner Bill Daly stating his expectation that the two sides would be on the same page should it reach this point – to disallow participation, the final decision will lie with the players themselves:

We made a promise to the players, and I’m going, to the best of our ability, adhere to it, understanding that there may be consequences that nobody’s gonna like… It’s not like we haven’t expressed our concerns. But in the final analysis, subject to some caveats, with all of the issues that are being raised… the players, for the most part, seem to continue to be saying they want to go… ultimately, this is going to have to be a players’ decision.

A return to the Olympics was in fact collectively bargained when the NHL and NHLPA agreed to a new CBA last year. The players have right to compete for gold if they so choose, though it is obvious that the league would rather they not. Bettman does note that more players have expressed their concerns of late, but will it be enough? That remains to be seen with time ticking away before the opt-out deadline of January 10 and the opening of the tournament in two months.

Ryan Hartman Avoids Suspension, Earns Fine

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The Department of Player Safety has decided that Minnesota Wild forward Ryan Hartman’s slew foot on Tampa Bay Lightning forward Ross Colton did not rise to the level of a suspension, issuing a $4,250 fine instead. The fine is the maximum allowable under the CBA, based on Hartman’s current salary.

The incident, which occurred late in the first period on Sunday night and resulted in a tripping penalty for Hartman. He then received an additional five-minute major for fighting when Zach Bogosian engaged him almost immediately after he exited the penalty box. Colton avoided a serious injury on the play and ended up seeing nearly 16 minutes of ice time in the game.

Slew-footing has become something of a trend in the NHL this season, with several different players earning fines or suspensions for incidents similar to the one that happened in Tampa Bay. Just last week, Kevin Labanc received a one-game suspension for nearly the same thing, with the league including the explanation that “what causes this play to rise to the level of supplemental discipline is the speed the players are traveling and their proximity to the boards.” Perhaps in the Hartman case, they did not feel it included those same factors.

Snapshots: Blackhawks, Kane, Wedin

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It is a quick COVID Protocol turnaround for a few Chicago Blackhawks, well at least two of the three. After missing practice yesterday due to compliance with league protocol, Ryan Carpenter and Erik Gustafsson were back on the ice at morning skate today ahead of their game against the Detroit Red Wings. However, remaining absent was star Patrick Kane, who was also among the protocol group yesterday. The Athletic’s Scott Powers has confirmed suspicions, relaying word from the Blackhawks that Carpeneter and Gustafsson have been removed from the COVID Protocol, but Kane has not. There is no word as to why the trio were initially subject nor why Kane remains, but regardless Chicago will get some reinforcements back but could still be missing their best player tonight. Off to a frustrating 0-4-1 start, the Blackhawks can ill afford to be without Kane for very long. Interestingly, head coach Jeremy Colliton stopped short of ruling Kane out against Detroit, but there will have to be a change to his COVID status within a matter of hours.

  • Another team missing a Kane is the San Jose Sharks. Last season’s leading scorer, Evander Kane, is serving a 21-game suspension for violating COVID Protocol by using a fake vaccination card. Given all of the controversy surrounding Kane over the past year though, a 21-game absence is unlikely what the Sharks expected to result from multiple investigations. The big winger will in fact be eligible to return to the team before the end of November. So where does San Jose go from here? The team is off to an incredible and unexpected 5-0-0 start and is playing well, perhaps without Kane’s distraction in the locker room. However, they have little recourse to prevent him from returning to the club. TSN’s Chris Johnston reports that the Sharks cannot terminate Kane’s contract due to the lengthy suspension nor can they do so as an internal form of punishment due to the findings that led to his league suspension. The CBA does not allow either form of double punishment and the NHLPA would not let it fly. They would be supported by a recent report from Sportsnet’s Elliotte Friedman, which stated the league never considered termination as a punishment for Kane. While the Sharks may be opne to a reunion with Kane, both Johnston and Friedman note that the team’s reaction has been a mixed bag of support and disdain for the situation and Kane’s coaches and teammates have been non-committal about whether or not they want him back. The team has just over a month to decide how to handle his return.
  • Interestingly, a former Chicago Blackhawk and a player once linked to the San Jose Sharks was back on the market this week, albeit briefly. Forward Anton Wedin, who spent the 2019-20 season in the Blackhawks organization, terminated his contract with the KHL’s Sibir Novosibirsk earlier this week. This sparked some speculation that perhaps he would return to North America, even if only on an AHL deal. After all, Wedin made the jump from Sweden to Chicago at 26 and played in four NHL games and recorded 17 points in 31 AHL games. It was by no means a poor season. Wedin, who was only on a one-year deal with the Blackhawks, drew some NHL interest in the 2020 off-season, but ultimately decided to say home in Sweden during the pandemic, totaling 16 goals and 30 points in 39 games with HV71 in his best SHL season to date. Wedin’s name did not appear in any NHL rumors this summer and he signed in the KHL, but after just two points in 14 with Sibir he has moved on. Instead of exploring a return overseas though, Wedin will play out the season in the KHL after signing with Dynamo Moscow for the remainder of the year. Still just 28 and with NHL experience and ability, perhaps Wedin could return to the league in the future.

Latest On Evander Kane

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Yesterday, the San Jose Sharks left Evander Kane off their opening night roster, noting that he “is considered a non-roster player pending completion of the NHL’s investigation.” There was no clarity on how that affected the team’s cap situation, but CapFriendly reports today that Kane’s $7MM cap hit will not currently count against the Sharks. That leaves them with a little more than $8MM in total cap space going into the season.

The bigger question is how long will the Sharks be without Kane, and there could be an answer coming soon on that front. Nick Kypreos of Sportsnet tweets that the league is leaning toward suspending Kane under the CBA’s “Commissioner Discipline for Off-Ice Conduct” (article 18-A). A suspension like this is entirely determined by the league’s commissioner, in this case Gary Bettman, but does have an appeal process. Technically the article also states that a player’s contract can be canceled by the commissioner, though nothing has indicated that will be the case here. It reads:

18-A.2 Commissioner Authority to Impose Discipline for Off-Ice Conduct.

Whenever the Commissioner determines that a Player has violated a League Rule applicable to Players (other than Playing Rules subjecting the Player to potential Supplementary Discipline for On-Ice Conduct), or has been or is guilty of conduct (whether during or outside the playing season) that is detrimental to or against the welfare of the League or the game of hockey, he may discipline such Player in any or all of the following respects:

  • (a) by expelling or suspending such Player for a definite or indefinite period;
  • (b) by cancelling any SPC that such Player has with any Member Club; or
  • (c) by imposing a fine on the Player not exceeding the maximum permissible fine under Section 18.7(b).

For the purpose of calculating compensation forfeited due to a suspension under this Article, the Player will forfeit all Paragraph 1 NHL Salary and Bonuses, but not Performance Bonuses, commencing on the effective date of the suspension through the completion of the last game or date of the suspension, inclusive of all intervening days.

David Pagnotta of The Fourth Period tweets that the investigation is ongoing and Kane is currently designated as a non-roster player. How long that designation stands for is unclear, just as the potential length of suspension is still unclear.

When the league announced that Kane had been cleared of the allegations of gambling on NHL games, it also included a note that he was being investigated for other potential wrongdoing. The official release has been changed several times, but now does not include any mention of the “allegation of inappropriate behavior potentially jeopardizing the health and safety of Club members” that it once listed.

Teams Will Receive Cap Relief For COVID-Related Suspensions

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

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

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

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

Overseas Notes: Olympics, Kuhnhackl, Slepets

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

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

Salary Cap Increases Expected To Be Minimal Through 2025-26

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

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

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

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

NHL Central Registry Rejects Philipp Grubauer’s Contract

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

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

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

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

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