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Evander Kane, Sharks Inform Bankruptcy Court Of Potential Contract Termination

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When San Jose Sharks forward Evander Kane filed for bankruptcy in January, just before the start of the season, there was some concern that he would not be available to play in 2020-21. While that has not been the case, a new question has arisen in relation to Kane’s bankruptcy case and his playing future: is this his final season with San Jose?

The Athletic’s Daniel Kaplan and Kevin Kurz write today that Kane, along with the Sharks, filed a motion in United States federal bankruptcy court requesting an extension on the court’s determination as to how Kane’s contract is governed by bankruptcy law and whether it should be assumed as part of reorganization. Their reasoning: as the parties to the contract, they each acknowledge a possibility of rejection of the deal, making the determination a moot point. The court has accepted this motion, delaying the case until June 7. For a San Jose team that is highly unlikely to make the 2021 playoffs, this date falls after the season is over, at which time the two sides could decide to terminate the remaining four years and $29MM of the $49MM pact that Kane signed in 2018.

Why exactly does either side wish to terminate the deal? After all, Kane is the Sharks’ second-best scorer so far this season and a perennial 30-goal, 50-point player who is well worth his value. Kaplan and Kurz posit that for both sides this is simply about saving money in the short-term. While that may seem counter-intuitive for Kane to give up so much guaranteed money, not only is the contract filed as his sole source of employment in his bankruptcy filing, but it was also used to secure many of the loans that he has defaulted on. Removal of the money promised in his contract would fundamentally change the way that his bankruptcy ruling would be organized, denying creditors of their immediate source of repayment. Essentially, the contract is all that Kane has and by removing it before his bankruptcy determination, the result would be very different. As for the Sharks, the team is happy with the play of Kane but as they endure another difficult season and consider a rebuild, $29MM in future salary could be put to better use in a time of financial hardship.

Of course, Kane’s creditors also want a say in the matter. One in particular, Zions Bancorp, has filed a motion requesting that Kane’s bankruptcy case be treated as a business under Chapter 11 rather than as an individual under Chapter 7. They claim that Kane’s losses, mostly attributed to gambling, should be considered business-related. If this change is made, with a hearing occurring later this month, than the $29MM remaining on Kane’s contract would be open to creditors and a lien would be placed on those future earnings. In this case, there would be even more motivation for Kane to terminate the deal. If the contract remains shielded from creditor access, then it is more likely to be honored by Kane and Sharks, especially in the event of a positive decision from the judge on how it should be treated.

The NHL and NHLPA are certainly watching this case closely as well, but as Kaplan and Kurz note there is not much that they can do when it comes to competing with federal law. If the Sharks and Kane decide to terminate the contract in the eyes of the bankruptcy court, that would supersede any collectively bargained rules and processes. However, if this does occur, the league and players’ association could certainly step in to prevent Kane from signing  a new deal with San Jose – or with any other team – after his bankruptcy decision has been finalized. Kane is no stranger to off-ice issues and the league may not want to further enable him and set a precedent that their rules can be warped when players get into personal trouble.

There is still much to be decided in this case, but this is now the second time that Kane’s bankruptcy case has come up as a possible hindrance to his participation in the NHL and it likely won’t be the last. With the Sharks now involved, this situation has been elevated from an individual issue to one that could impact the team, the league, and players’ rights. The case bears watching in the coming months.

Snapshots: Maple Leafs, Granlund, DeAngelo, Draft

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The Toronto Maple Leafs are the current kings of the NHL, leading the league standings and by a decent margin. In a rare season in which the Leafs don’t have to go through the Tampa Bay Lightning and more importantly the dreaded Boston Bruins early in the playoffs, Toronto is understandably excited about their prospects and willing to load up before the deadline to give themselves their best shot at a title. TSN’s Darren Dreger reports that the team’s current focus is on bolstering their forward corps. He states that the goal is to add a middle-six forward prior to the trade deadline and, if possible, one that could line up at center on the third line or shift to wing and play higher in the lineup. One potential fit that continues to be linked to Toronto is Nashville Predators forward Mikael Granlund, if you can call him “middle-six”. On a struggling Predators team, Granlund has been one of the few highlights, leading all Nashville forwards in ice time, blocked shots, and Corsi For and second only to Filip Forsberg in scoring. Dreger believes that Granlund, an impending free agent, will absolutely be available as the Predators seem poised to begin a fire sale of sorts and he could be the ideal pick-up for Toronto as a luxury depth addition – a current top-line forward moving into a middle-six role. Of course, given Granlund’s strong play there will be other suitors and Toronto will certainly take a look at additional options should a Granlund deal not prove to be viable.

  • Trade talks have quieted down on New York Rangers defenseman Anthony DeAngelo, as it seems that teams do not want to make the financial commitment this year and next to the polarizing defenseman despite his obvious ability. Yet, DeAngelo wants to get back on the ice. He was told that his time with the Rangers was over and, per TSN’s Frank Seravalli, that extends to the AHL’s Hartford Wolf Pack as well. New York has informed DeAngelo that he will not be assigned to their affiliate; however, they are willing to loan him out to another AHL team. Seravalli reports that DeAngelo and his representation are currently in the process of trying to find a spot for him to play out the rest of this season in the minors. In the big picture, the fact that it has come to this means that a trade elsewhere seems highly unlikely. Expect DeAngelo to be bought out this summer and take a short-term “show me” deal elsewhere.
  • Even as the Canadian junior leagues continue to work towards a full return to play, there are concerns about the 2021 NHL Draft and the pressure on teams due to the lack of complete information on eligible prospects. While European leagues, American junior leagues, and the NCAA have all had some semblance of a full season, the same cannot be said for Canada, the largest producer of NHL talent. A number of teams have expressed support for postponing the draft until later this year or even next year and a number of option have been proposed. However, Sportsnet’s Elliotte Friedman stated on a recent radio appearance that this change is easier said than done. Due to all of the language pertaining to draft eligibility and rights, all collectively bargained, it will be difficult to postpone the draft, even if it is in the best interests of the teams and many prospects. Friedman notes that the NHLPA presented the league with a number of issues that would need to be addressed before the draft could be delayed and Friedman hears that that there simply may not be enough fight on the league side to figure out the many solutions. Dreger reports that, one way or another, answers are needed soon and there could be a meeting as early as Thursday to discuss all issues and options.

League Notes: Draft, Fines, AHL

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There’s been a lot of talk about the 2021 NHL Entry Draft and how it could be pushed back from this summer, but Elliotte Friedman of Sportsnet examines just how difficult that would actually be in his latest 31 Thoughts column. Everyone agrees that it will be tough to properly assess players who haven’t had a chance to play much this season, but the draft has many other machinations that go along with it, including service time and rights retention.

There are real hurdles to overcome before the event is moved just like anything that needs to be negotiated between the NHL and NHLPA. For now, the draft is still scheduled to begin on July 23, just a few days after the Seattle Kraken enter as the league’s 32nd franchise and hold their expansion draft.

  • Vancouver Canucks forward Antoine Roussel has been fined $5,000 for roughing Edmonton Oilers forward Jesse Puljujarvi last night, the maximum allowable under the CBA. After a whistle, Roussel started throwing punches at Puljujarvi without the Edmonton forward wanting to engage in a fight. Roussel was also assessed a two-minute minor penalty on the play.
  • The AHL has postponed tonight’s game between the Iowa Wild and Texas Stars due to COVID-19 protocols affecting the Wild. The game has not been rescheduled yet. This postponement means that Texas will continue to wait for their next game after having last week’s match postponed due to inclement weather. The Stars haven’t played since February 13 and it is unclear if games on Friday and Saturday against Iowa will go ahead.

International Notes: 2022 Olympics, Team USA, Mexico City

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The NHL may have made a commitment to return to the Winter Olympics in 2022, but that doesn’t mean that participation is automatically guaranteed. TSN’s Darren Dreger reports that concerns obviously still exist about the viability of a mid-season international tournament set to begin in less than 12 months given that the battle against the Coronavirus is still being waged across the globe. Although COVID-19 vaccines are now being distributed world-wide and the hope is that the virus will be contained within the next year if not sooner, a major international event with athletes from all over the world poses a great threat of infection, especially given the fact that many countries will not be vaccinated at the same rate as major world powers like the United States and Canada, among others. As Dreger notes, the first test before the Beijing Games in 2022 will be this summer, as the postponed Tokyo 2020 Summer Olympics are still scheduled to take place. However, there is considerable concern and doubt about the Tokyo Games occurring. The stakeholders in the next Winter Olympics will learn a lot from how these Summer Games are operated, if at all, from a health and safety perspective. As Dreger notes, the testing protocols in Beijing will have to be extensive for NHL players to attend, especially considering that the virus originated in China. He believes that if the Summer Olympic results or the plans for the Winter Olympics do not inspire hope, there is a possibility that the men’s hockey tournament could be held remotely at a different venue, still part of the Beijing games but from a more secure location, likely in North America. Dreger adds that the IIHF is set to meet soon to discuss the many issues and possibilities surrounding the 2022 Games. Since the commitment to Olympic participation was collectively bargained in the latest CBA, both the NHL and NHLPA would need to agree if players were not to attend next year. However, both sides only have player safety in mind at this time and should be on the same page with making a determination at some point in the near future.

  • Assuming the NHL does return to the Olympics in 2022, it will the first opportunity to play at the top international level for many of the game’s biggest names. After skipping the last Winter Olympics in Pyeongchang in 2018, the NHL has not sent representative to the Games since 2014 – a long span of time in an NHL career. Many established stars had not even been drafted when the league was last involved. Expectations are especially high for Team USA, as the Americans may be looking at their most talented Olympic roster ever in 2022. Auston Matthews, Jack Eichel, Johnny Gaudreau, Matthew and Brady Tkachuk, Seth Jones, Connor Hellebuyck, and countless other will all be making their Olympic debuts. However, USA Hockey has yet to choose the man that will be in charge of forming this team and does not plan to do so until participation in the games is confirmed. However, TSN’s Frank Seravalli reports that Chicago Blackhawks GM Stan Bowman is considered the likely selection at this point. Bowman, who won Stanley Cups in the years sandwiching the NHL’s last Olympic Games, was nevertheless not part of Team USA the last time around. This time, he is expected to be the GM and the one to lead a hopeful squad. Seravalli notes that past members of Team USA’s operations such as David Poile and Don Waddell are surely being considered as well, but appear more likely to be assistants to Bowman. With Hockey Canada already announcing a deep and talented brain trust for the 2022 Games to go with an always-talented roster, Team USA may not want to wait much longer to formally begin preparations.
  • As for other possible upcoming international ventures, Arizona Coyotes President and CEO Xavier Gutierrez has some thoughts. Speaking with AZ Central’s Jose Romero about the NHL’s upcoming outdoor games – and how the ’Yotes have never been invited to play in one – Gutierrez shared his hopes for Arizona to take part in a different historic game. He believes that the next step for the NHL in their global initiatives is to hold a game in Mexico City. Although Mexico is not a traditional hockey country, Gutierrez sees “incredible opportunity” for growth in Latin America. The NHL has played games in Asia before with this same idea of spreading the game in mind and Gutierrez feels that Mexico should be next up. He notes that the NFL, MLB, and NBA have all ventured into Mexico before, leaving the NHL as the only major North American league yet to do so. The league has not hesitated to hold both preseason and regular season games abroad in recent years and games in Mexico City, given a proper venue is available, may not be as costly or logistically challenging as games in Eastern Europe and Asia have been. Should the league consider Gutierrez’ idea, the Mexico native’s club does seem like the ideal fit. Coyotes owner Alex Meruelo is the NHL’s first Latino majority owner and Gutierrez it’s first Latino president. The ’Yotes, as well as the Los Angeles Kings, Anaheim Ducks, or Dallas Stars, all play in areas with significant Latin populations and there are surely fans of some of these team in Mexico as well. A match-up between Arizona and any of those teams would be a great introduction for the NHL south of the border.

League Notes: COVID Safety Measures, Draft Lottery, Draft Date

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As alluded to earlier, the NHL and NHLPA have revealed a joint release describing several new Coronavirus safety measures in response to the growing list of players in the COVID Protocol and game postponements. Included in the list of new strategies to mitigate the spread of the virus are a “work/home quarantine”, a ban on non-virtual team meetings and social interactions, removal of the glass behind the penalty box, KN95 face masks, and even revised seating assignments in the locker room and during travel to use previous positive-test players as “buffers”. There will also be rapid testing for all U.S. teams on game days, with a similar system in the works for Canadians clubs, genome sequencing tests, greater testing availability for household members, and a greater emphasis on COVID education. Will all of this change the current COVID calamity across the league? It certainly won’t hurt.

  • As rumored this off-season, the NHL is going to take a closer look at changing the structure of the NHL Draft Lottery. On Thursday’s edition of TSN’s “Insider Trading”, Pierre LeBrun reported that NHL Deputy Commissioner Bill Daly has revealed to him that a review of the lottery process is officially underway. He believes that a pitch will be made to the Board of Governors soon as to a proposed new format. The assumption of course is that the new structure will give increased odds of winning the lottery to the teams finishing at the bottom of standings. The talk this off-season centered around the Detroit Red Wings, who failed to win even one of the lottery draws for the 2020 NHL Draft and fell to fourth in a season in which they were historically bad and well below even the 30th-ranked team in the NHL. Many owners and GM’s felt that this shifted the status quo and placed importance on avoiding such poor teams missing out on top picks in the future, or at least offering them a better chance of landing those picks. Whether or not these lottery changes will be approved, and if so in time for the next entry draft, remain to be seen.
  • The question still remains of when the 2021 NHL Draft will actually be held. Given the lack of opportunity for a number of prospects this season, there have been considerable talks about postponing the draft. TSN’s Darren Dreger reports that NHL’s general managers plan to meet soon to discuss options for the coming draft. Dreger believes there are three possible options for the draft. The first, of course, is to leave the draft as is in June. With the CHL leagues working toward a return and the American junior and collegiate levels and European leagues well underway, there will likely have been a chance for every team to see every prospect, even if only in a limited sample size. This will put teams on an even playing field, however those drafting later in the first round may wind up benefiting from the lack of complete information allowing some superior prospects to slide. The other two possibilities involve postponing the draft. The first is to schedule the draft for the winter, either December of January, to allow teams to gather more data over the remainder of this season, in summer tournaments, and early next season. The second, and to Dreger the one likely to be most supported by GM’s, is to hold the 2021 and 2022 drafts back-to-back next summer, allowing for another complete season to replace the current campaign before teams are asked to select players. All three options hold merit and there are likely still many factors to consider over the next few months before a formal decision can be made.

Connor Ingram Enters Player Assistance Program

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One of the Nashville Predators’ depth goaltenders will not be with the team for the immediate future as Connor Ingram will be voluntarily taking part in the NHL/NHLPA player assistance program.

No other comment has been made from the league or the Predators. The program, which is a confidential service provided by the league and union to help players and their families with mental health, substance abuse, and other issues, has seen several players take leaves over the last few seasons, most publicly Bobby Ryan, then of the Ottawa Senators.

Ingram, 23, was a star for the Milwaukee Admirals last season, posting a .933 save percentage in 33 appearances. He signed a new three-year contract with the Predators last March and looked like the team’s third-string option heading into this season. It is not immediately clear how long Ingram will be away from the organization.

NHL, NHLPA Finalize Agreement On 56-Game Season

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Sunday: The NHL Board of Governors has approved the agreement between the NHL and the NHLPA with a tentative start on Jan. 13th, according to NHL.com’s John Shannon.

Friday: A resolution may finally be within reach for the league and its players on a format for the 2020-21 season. Sportsnet’s Elliotte Friedman reports this evening that the NHL and NHLPA have reached a tentative agreement on the terms of season, which would include a 56-game regular season schedule.

Of course, no agreement between the sides can be finalized until it is approved by each independently first. On that note, TSN’s Pierre LeBrun reports that the NHLPA and its player reps are expected to meet tonight while the NHL Board of Governors will meet this weekend.

Among the details trickling in are as follows:

  • The league will start on January 13 as hoped, per TVA’s Renaud Lavoie. Lavoie adds that the agreed-upon plan does include an all-Canadian division, as expected, though concerns exist about the logistics of cross-province travel.
  • TSN’s Frank Seravalli echoes that January 13 start date, though he opines that all dates could be subject to change. That includes training camp start dates as well, which he expects to be December 30 for the seven 2019-20 non-playoff teams and January 3 for all others.
  • Seravalli also reports that rosters are expected to remain at 23 players, but that each team may carry a taxi squad of four to six players who will travel and practice with the team, but will be paid their AHL salaries and will not count against the salary cap.
  • Seravalli adds that all players will be given the right to opt out of the season for personal or familial health concerns and that teams will have the decision of whether or not to toll the contract.
  • Friedman notes that salaries will not be pro-rated despite the shortened season. He also confirms that thre will be no preseason exhibition games.
  • Colorado Hockey Now’s Adrian Dater reports that the tentative plan is for every team to play out of their home building this season, at least at the outset, rather than playing in hub cities as some had speculated.
  • With the league expected to be broken down into four realigned divisions without any conference alignment, Friedman reports that each division will produce four playoff teams and the postseason will be inter-division until four division winners become the semifinalists for the 2021 Stanley Cup.

San Jose Sharks Expected To Open Season In Arizona

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With the NHL and NHLPA inching closer to a resolution on the 2020-21 season, teams are beginning to prepare for the reality of a forthcoming campaign. While the Canadian clubs have issues to work out before the season can begin, the San Jose Sharks are another team facing questions. Santa Clara County has banned contact sports locally through at least January 8, a policy that was recently extended and could be extended again as Coronavirus numbers remain high. This proves problematic for the Sharks, who as a reigning non-playoff team would be eligible to begin training camp on December 31 and may need to host games as early as January 13.

The Sharks’ solution appears to lie in following a fellow Bay Area team south. An anonymous source tells the Associated Press that San Jose will open their season in Arizona, much like how the NFL’s San Francisco 49ers have moved to Arizona to conclude their own season. While there is no word on whether the Sharks will share a facility with the Arizona Coyotes as the 49ers have done with the Arizona Cardinals, that is the expectation. Fortunately, this move will not disrupt the NHL’s current plan for realigned divisions and exclusive inter-division play this season, as both teams have been slotted for a new-look Pacific Division.

The AP source remained anonymous on this issue as details both on the league’s return to play and on the Sharks’ move have not been finalized nor have they been made public. NHL Deputy Commissioner Bill Daly took the same approach, telling the AP that he would not discuss details related to the Sharks’ plans as details of the restart still need to be papered and voted upon by the NHL Board of Governors and NHLPA both. The Sharks have additionally declined to comment on the relocation proposal. However, given the lack of any contrary reports, the restrictions facing San Jose, and the path already paved by the 49ers, it is a safe bet that the Sharks are Arizona-bound at least to open training camp and to begin their 2020-21 season.

Snapshots: Strome, Hallander, NHLPA Update

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The last few days have come with a few new contracts in the NHL, with restricted free agents like Justin Bailey and Oliver Kylington inking new two-way deals. We’re still waiting on the big RFA dominoes to fall though, with one of those being Chicago Blackhawks forward Dylan Strome who remains unsigned. This morning, Blackhawks GM Stan Bowman told reporters including Brandon Cain of NHL.com that the team has had conversations with Strome’s representatives and is optimistic something will get done, but couldn’t provide any timeline on the process.

Strome, 23, was included in our look at the mid-tier restricted free agents still waiting on contracts, but for Chicago, he’s all that really matters right now. The team’s roster appears largely set for the upcoming season, given that Strome’s eventual deal will likely eat up a good chunk of the remaining cap space. The young forward hasn’t lived up to the third-overall pick that Arizona used on him in the 2015 draft but does have 89 points in 106 games since coming to Chicago. As the team inevitably moves away from aging franchise icons like Jonathan Toews and Patrick Kane over the next few years, a player like Strome could step up and be a leader for the Blackhawks.

  • When the Toronto Maple Leafs dealt Kasperi Kapanen to the Pittsburgh Penguins, much of the focus was on the first-round pick coming the other way. The Maple Leafs actually acquired another piece in that deal though, 20-year-old center Filip Hallander, who had been drafted in the second round in 2018. Hallander was expected to come to North America this winter to take part in training camp with Toronto but is now going to stay in Sweden where he plays for Lulea HF in the SHL. Hallander has 10 points in 21 games this season and is an intriguing prospect for the Maple Leafs, whose system didn’t have much center depth beyond the NHL.
  • In his daily update, Pierre LeBrun of The Athletic tweeted this morning that there is a call scheduled for this evening between the executive board of the NHLPA to update the player reps on where things stand. LeBrun does not expect the call to include a vote as the documentation for the upcoming season is not yet completed. While there seemed like some momentum for things to be finalized this weekend, it does not appear as that will happen tonight.

Latest On Target Start Date For NHL

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We’re now less than four weeks away from the reported target start date of January 13 and still don’t have any official word from the NHL or NHLPA on when training camp will begin. Teams have begun the process of bringing their players back to North America to serve a quarantine period, but it’s still not clear when they will actually be suiting up for game one of a shortened season. Still, multiple reports have come out over the last 24 hours that suggest January 13 is still possible.

Pierre LeBrun of The Athletic tweeted this morning that this is still the case, with both sides working to complete the agreement documents. Once that is complete, both sides—the NHL board of governors and the NHLPA executive board—will need to conduct a vote. Nick Alberga of Sportsnet tweeted that a Friday or Saturday vote was the hope from the player side, while David Pagnotta of The Fourth Period reports there is no board of governors call scheduled for today, but hope that the documents can be finalized today or tomorrow.

Frank Seravalli of TSN meanwhile reports that the league is working on a triple header for opening night which would feature the Tampa Bay Lightning raising the Stanley Cup banner (potentially against the Chicago Blackhawks), a “big east clash” potentially between the New York Rangers and Boston Bruins and a “marquee west matchup” to close the night, potentially between the Colorado Avalanche and St. Louis Blues. None of that is official yet and there is certainly no guarantee it will take place as Seravalli suggests, but it would certainly be an exciting way to welcome hockey back.

There is so much smoke surrounding an agreement coming out this weekend that hockey fans can get their hopes up a little bit. Perhaps it won’t be January 13, but it feels inevitable now that the NHL will return at some point either in January should no more obstacles be placed in the way. The question of whether it will be held in hub cities or home cities is one of the biggest still to be answered and likely one that the league will wait until the very last possible second to reveal.

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