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Examining Some Major CBA Changes

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While the focus for many hockey fans today will be on the return to play protocols and when their individual team will resume the chase for the Stanley Cup, the vote between the NHL and NHLPA also officially introduced a CBA extension. With that extension, that will run through September 15, 2026 (but also has some built-in extenders), the two sides also agreed to several changes to contract structure rules and enforcement. We’ll go over some of the most striking changes here:

  • NMC/NTC: No-move or no-trade clauses that have been included in contracts but have not yet kicked in will remain even if a player is traded. In 2016, the Montreal Canadiens traded P.K. Subban to the Nashville Predators just a few days before his no-trade clause was set to begin. Under the old rules, the Predators had the choice of whether to honor that clause or not. They decided not to (Predators GM David Poile is notorious for not including no-trade clauses in most of his own deals) and subsequently traded Subban to the New Jersey Devils a few years later.
  • UFA Interview Period: The interview period that immediately precedes the league’s free agency period has been eliminated. Previously, the league allowed teams to speak with pending free agents a few days before their contracts actually expired, in order to allow players and front offices a little more time to negotiate. That period has been eliminated, meaning there will be a rush to get in contact with players the moment free agency begins.
  • Recapture Penalties: Cap recapture penalties cannot exceed in any one year the contract’s average annual value. Under the old rule, the Predators were in danger of facing a ~$24.6MM cap penalty if Shea Weber decided to retire before the 2025-26 season. That penalty, should it happen, would now be spread over several years and not be able to exceed the $7.86MM cap hit Weber carries. So far, only the Vancouver Canucks and Florida Panthers have been dinged with recapture penalties, both stemming from Roberto Luongo’s early retirement.
  • Trade Conditions: A team can no longer include a condition in a trade that would send further compensation if a player is re-signed. This is only applicable if the traded player has an NHL contract at the time of the trade. Before this rule, teams were almost always including an additional condition in trades that would net them an extra piece of compensation if the acquiring team re-signed the player. A notable recent example was when the San Jose Sharks re-signed Evander Kane after acquiring him from the Buffalo Sabres. The decision to re-sign Kane came with an increased cost to the Sharks, as a conditional fourth-round selection was upgraded to a first-round pick.
  • Eight-Year Extensions: Teams no longer need to wait until after the following trade deadline to sign a newly acquired player to an eight-year extension. In the case of Erik Karlsson, the Sharks were not permitted to sign him for an eighth year until the trade deadline had passed after acquiring him from the Ottawa Senators.
  • Qualifying Offers: A qualifying offer for a restricted free agent is no longer automatically equal to the final year’s salary.  Instead, it will be the lower of the salary in the final year or 120% of the AAV of the contract. Timo Meier notably used the old rule to his advantage when negotiating his new contract, back-loading the deal to force a $10MM qualifying offer when it expires. This change only applies to contracts signed from here on out, meaning Meier (and others like Brock Boeser) will still receive qualifying offers equal to their final contracted year.
  • Olympic Participation: Both sides have committed to participating in both the 2022 and 2026 Olympic Games. Though this isn’t contractual, it was a big point of emphasis for the players in CBA negotiations.
  • RFA and Draft Pick Contracts: Teams can start signing restricted free agents and draft picks to contracts starting in 2020-21 on Monday. They can also extend players who have contracts expiring after the 2020-21 season. Players like Kirill Kaprizov, Ilya Sorokin and Alexander Romanov will have a three-day window to sign for 2019-20 and burn a year off their entry-level contracts, but will not be allowed to play in the playoffs.

Given that the document released today is only a memorandum of understanding and not the official CBA, there are bound to be more changes noticed in the weeks to come.

NHL, NHLPA Ratify Return To Play, CBA Extension

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The NHL’s Board of Governors and the NHLPA have ratified their agreement that covers both a return to play for the 2019-20 season and an extension to the current CBA until 2026. The deal includes several tweaks to transaction and contract rules but will ensure financial stability for the players and labor peace for the next several years.

Frank Seravalli of TSN reports that the vote among players was 502-135 in favor of the agreement.

With the ratified deal in place the league’s Phase 3—training camp for those 24 teams involved in the expanded playoffs—is set to begin on Monday with games scheduled to kick off on August 1. The Stanley Cup is scheduled to be awarded in October, while the 2020-21 season will hopefully start in December.

The salary cap ceiling is expected to stay at $81.5MM for the 2020-21 season and potentially for several years thereafter.

Should any player wish to opt-out of the upcoming playoff tournament, he will be allowed to penalty-free as long as he does so in writing before 4pm on Monday. The MLB has recently seen several high-profile players opt-out of their shortened season, though they are not working out of hub cities and continuing to travel around North America. The NBA, which has set up a bubble in Florida, has also seen players opt-out including two-time All-Star Victor Oladipo.

The NHL has also announced that the 2020 Entry Draft has been tentatively scheduled for October 9-10. The second phase of the draft lottery will be held after the qualification round.

As part of the agreement, the NHL will once again be sending players to the Olympic Games.

NHL commissioner Gary Bettman released the following statement:

Today, the NHL and the NHLPA announced a significant agreement that addresses the uncertainty everyone is dealing with, the framework for the completion of the 2019-20 season and the foundation for the continued long-term growth of our League. I thank NHLPA Executive Director Don Fehr and Special Assistant to the Executive Director Mathieu Schneider, the more than 700 NHL Players – particularly those who worked on our Return to Play Committee – and the NHL’s Board of Governors for coming together under extraordinary circumstances for the good of our game. While we have all worked very hard to try to address the risks of COVID-19, we know that health and safety are and will continue to be our priorities. We know that all of our fans are excited about our return to the ice next month and that has been our goal since we paused our season on March 12.

The league has also included a schedule for the first ten days of the qualification round.

Snapshots: Ratification, Murray, Evason

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The NHL’s Board of Governors has a conference call scheduled for this evening to vote on the proposed CBA extension and return to play agreement. That vote is expected to go smoothly according to Bob McKenzie of TSN, who points out that it is “virtually unheard of” for the governors to go against something put forward by commissioner Gary Bettman. The NHLPA however, which also needs to ratify the agreement for it to come into effect, has been voting since Wednesday evening and will complete the process tonight.

Though there is plenty of positivity around the player vote, McKenzie does point out that this is likely an all-or-nothing situation when it comes to the 2019-20 season. The veteran scribe does not see a way the two sides could immediately go back to the negotiating table or find a way to finish the 2019-20 season if the players were to reject this package. A rejected proposal would also have far-reaching effects on the league, with some sources even indicating to him a substantial drop in the salary cap ceiling for next season without the CBA extension. McKenzie also mentions the dreaded “lockout” term in his explanation of the importance of this vote, something no hockey fan wants to hear at this point. News of the ratification could come as early as tonight.

  • Michael Russo of The Athletic has a few notes about the Minnesota Wild’s front office and coaching structure, including a suggestion that Mike Murray could be joining the organization soon. While Murray has only said he left the AHL to “accept a position with an NHL club” in October, Russo tweets that fans shouldn’t be surprised if that’s Minnesota given his familiarity with Wild GM Bill Guerin. Murray served as the AHL’s vice president of hockey operations.
  • While Murray’s connection seems speculative at this point, Russo goes into far more depth on interim head coach Dean Evason and his future with the organization. In his latest piece for The Athletic, Russo lists Gerard Gallant, Peter Laviolette, Tim Army, Scott Sandelin, Mike Hastings, and Tony Granato as other potential candidates, but notes that Evanson has “elevated himself” into consideration. The Wild are scheduled to face the Vancouver Canucks in their qualifying round, giving Evason even more opportunity to show what he can do behind the bench.

NHL Announces Tentative Key Dates, Notable CBA Changes

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The NHL and NHLPA today released the details on their Memorandum of Understanding regarding the agreed-upon extension of the Collective Bargaining Agreement. The memorandum, as detailed by TSN’s Frank Seravalli, reveals a number of potential key dates for the adjusted 2020 postseason and 2020-21 off-season and regular season. The dates are as follows:

July 10 – Beginning of training camp

July 24 – Travel to hub cities

July 25 – Beginning of exhibition games

July 31 – Beginning of qualifying round

Aug. 9 – Beginning of Stanley Cup Playoffs

Aug. 23 – Beginning of Second Round

Sep. 6 – Beginning of Conference Finals

Sep. 20 – Beginning of Stanley Cup Final

Oct. 2 – Last possible day of Stanley Cup Final

Oct. 6 – 2020 NHL Entry Draft

Oct. 9 – Opening of free agency

Nov. 17 – Beginning of training camp for 2020-21 season

Dec. 1 – Beginning of 2020-21 regular season

Not only are these dates of course pending a vote to ratify the CBA extension by the players, but Seravalli also notes that they are subject to change based on logistical delays. This has in fact already occurred, as training camps are listed as opening on Friday, when in reality they will open on Monday, July 13. Regardless, the NHL clearly has a plan to start play within a month and wrap the expanded postseason by early October. This would set the league up to take nearly two months off for the off-season but still begin the next season less than two months later than usual.

Seravalli also noted that there are some proration rules in place with regards to eligibility for player bonuses for this season but that does not extend to trades that were made with conditions for players reaching certain statistical thresholds, such as the James Neal–Milan Lucic trade.  The league will instead allow teams to make arguments and then potentially have it decided by an arbitrator.

Other key CBA notes revealed by Seravalli include:

  • An increase in maximum entry-level contract salaries from the current $925K to $950K from 2022-2024, $975K from 2024 to 2026, and finally $1MM beginning in 2026-27.
  • An increase in the minimum salary from the current $700K to $750K from 2021-2023 and $775K from 2023-2026
  • An agreement that the NHL and NHLPA will discuss abandoning the Return To Play plan if players opting-out on a league-wide or club-wide basis “materially impacts the integrity” of the postseason

COVID-19 Outbreak In Edmonton Hospital Doesn’t Alter NHL Plans

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All services have been closed to the public at Edmonton’s Misericordia Hospital after a COVID-19 outbreak left 20 patients and 15 staff members infected, per Nicole Bergot of the Edmonton Journal. Edmonton, of course, is prepared to be one of the NHL’s hub cities as play resumes on August 1.

The NHL and NHLPA have seemingly put together an amazing week of work to find common ground in the hopes of returning to play – and as of right now, this outbreak doesn’t change the NHL’s plans, per Jason Kay of the Hockey News. These playoffs – should they happen – will be unlike anything the NHL has orchestrated in recent years.

To briefly recap: the 5 through 12 seeds in each conference are preparing for head-to-head five-game series on neutral ice that will determine the final four playoff competitors in each conference. Though the stakes are as high or maybe higher than a traditional NHL playoff series, the scope and logistics are much different.

For starters, there’s the simple fact that after a long layoff, players are jumping right into an elimination round. They are trying to work themselves back into game shape in the most unique environment they’ve likely ever played. Facing potential separation from their families and the constant fear of contracting coronavirus, the “it’s only a game” idiom no longer holds true. On the other hand, assuming most players can “get back to it” without setbacks – a huge assumption – it’s the same game these players have played their entire lives.

Still, to jump right into a five-game elimination round (as opposed to the typical seven-game playoff) could set the stage for even more parity than in most years. Not only will teams have less room for error, but top seeds have lost the advantage of home ice. Broadly-speaking, this lowers their probability of surviving any given game from 55 percent to an even 50-50 split, per TSN’s Travis Yost.

The Edmonton Oilers are one of two squads who will get to play on their home ice. And while there won’t be any fans allowed in the stadium, the organization is still exploring ways to capture a modicum of home-ice advantage elsewhere in the city, writes Terry Jones of the Edmonton Sun. Given the risks of gathering any large crowds, it’s hard to imagine the Oilers pulling this off in any substantive way – especially after news of this most recent outbreak.

Still, coronavirus isn’t going away, and outbreaks of some variety are to be expected. If Edmonton gets a handle on this situation, it might provide the league with even more confidence in its viability as a hub city.

NHL Players Grappling With Monday’s Opt-Out Deadline

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NHL players will have three extra days to decide whether or not to play in the 24-team playoff that begins on August 1, per Adrian Dater of Colorado Hockey Now. Anyone opting out will have to do so before Monday night.

But don’t expect a whole host of skaters to sit this one out, writes The Athletic’s Scott Burnside. Families being allowed into hub cities starting with the conference championships have allayed some concerns, but there are still players with pregnant wives and pre-existing conditions who must think twice before putting themselves at risk.

One general manager, speaking anonymously, posited that there was a good chunk of NHL players who do not prefer to return to play under these conditions, per Burnside. This is a refrain we’ve heard numerous times in recent weeks, but always anonymously. That fact alone speaks to the complicated cultural hurdles facing the NHL. The option of opting out is always couched in this idea that NHL’s culture of toughness won’t allow for abstainers.

The Columbus Blue Jackets, for one, don’t expect anyone to opt-out, but that doesn’t mean it’s an automatic call, writes The Athletic’s Aaron Portzline. Portzline spells out the dilemma facing Nick Foligno to give a sense of the types of decisions players are dealing with: “He’s the Blue Jackets’ captain, so he has an enormous responsibility within the dressing room. But he’s also the father of a child with a pre-existing condition. His daughter, Milana, was born with a congenital heart defect and has had multiple surgeries. That makes her more vulnerable to the COVID-19 virus.”

The league itself does not require players to cite any specific reason for opting out. Given the culture of the NHL, however, it seems that any player who makes that choice will be scrutinized. And yet, that’s not the same as being stigmatized – and that’s an important distinction. There’s a lot of understanding in the league right now, and given the absolute dangers of COVID-19, players and coaches alike realize that the decision to play – or not to play – is deeply personal.

Snapshots: NHLPA Executive Board Approves CBA, DEL, LeBlanc, Stutzle

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The NHL and NHLPA have crossed another hurdle to ratifying their CBA extension, the NHLPA announced. The NHL’s Executive Board has approved of the extended CBA and sent it to the NHLPA membership for a vote. The full body of NHL players still needs to cast their ballots, which is expected to take place sometime over the next 48 hours. Only a simple majority is needed to pass, per Sportsnet’s Elliotte Friedman. As we await the final vote, let’s check-in elsewhere around the NHL…

  • Former Chicago Blackhawks prospect Drew LeBlanc signed a two-year extension to stay with Augsburger Panther of the Deutsche Eishockey Liga, per NHL.com’s Brandon Cain. LeBlanc appeared in two games with the Blackhawks in 2012-2013 and last appeared stateside with the AHL’s Ice Hogs in 2014-2015. He’s carved out a role in Germany over the last five years, scoring exactly 11 goals in the last four. He posted a career-high 49 points last season for Augsburger.
  • Speaking of the DEL, top draft prospect Tim Stutzle put up 34 points (7 goals, 27 assists) for Adler Mannheim last season, a strong enough showing to put him in the running to become the highest-drafted German prospect ever (Leon Draisaitl went number 3 overall to the Oilers in 2014). As a consensus top-5 prospect, Stutzle – who has drawn comparisons to Patrick Kane for his offensive creativity – could go as high as number two to the Los Angeles Kings, who may understand Stutzle’s path better than most, writes The Athletic’s Lisa Dillman.
  • Kings’ assistant coach Marco Sturm took a similar path on his way to the San Jose Sharks in 1997-1998. Sturm ought to be able to help connect the Kings’ to whatever intel they need on Stutzle. Most pundits suggest the Kings’ choice will come down to Stutzle or Quinton Byfield, though Jamie Drysdale could be in the running as well, which Dillman wrote about in-depth here.

 

NHL Adjusts Recapture Penalties

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With the NHL set to ratify a new extension for the Collective Bargaining Agreement, labor peace will be guaranteed for at least the next six years. That comes as very welcome news for hockey fans that have been waiting to see their favorite players back on the ice for several months. With any CBA negotiation, however, small changes will be made that benefit one side or the other—the NHL and NHLPA.

One of those changes, as reported by Michael Russo of The Athletic and explained by Frank Seravalli in his latest piece for TSN, is to the rules governing recapture penalties. Previously, a complicated formula would force substantial cap penalties onto teams if a player with a front-loaded contract retired before its expiration. Now, that penalty cannot eclipse the original contract’s cap hit in a single year.

So far only Roberto Luongo has created such penalties with his retirement last year.

When Luongo hung up his pads, the Vancouver Canucks and Florida Panthers were each forced to deal with penalties against their salary cap, with the former suffering the bigger charge. The Canucks have a $3.033MM penalty through the 2021-22 season and unfortunately will not receive any relief from this rule change given Luongo’s cap hit was $5.33MM.

The biggest winner (if you can even call it that) out of this new change may be the Nashville Predators, who were in danger of a potential ~$24.6MM cap charge if Shea Weber had retired just before the 2025-26 season. That number will now not eclipse the $7.86MM cap hit he carries, though that means it would be spread out over several years as the entire penalty must still be paid eventually.

The Minnesota Wild are another team who could be affected, given the front-loaded nature of contracts signed by Ryan Suter and Zach Parise in 2012. Those deals don’t expire until 2025 but will have paid out $88MM of the initial $98MM guarantee by the end of next season.

Seravalli has a comprehensive list of the other changes, but they include an increase to minimum salaries and a rule that no-trade clauses will remain in contracts even if the player is traded before the clause kicks in. Previously, the acquiring team was given the option to honor them—something the Predators chose not to do when they acquired P.K. Subban in 2016, days before the clause kicked in.

NHL, NHLPA Reach CBA Extension

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The NHL and NHLPA have a tentative agreement in place for the memorandum of understanding on the CBA, per TSN’s Bob McKenzie. The NHL and NHLPA have both announced the deal.

The owners and the players must ratify the agreement with a vote, but this is definitely trending in a positive direction. Ratification could happen as soon as the end of this week, but there is no set deadline, per McKenzie. Per the agreement, Phase 3 will begin as planned on July 13, followed by travel to hub cities on July 26 and the beginning of play on August 1.

The full press release from the NHLPA reads as follows: “The National Hockey League (NHL) and National Hockey League Players’ Association (NHLPA) have reached a tentative agreement on a Return to Play Plan and Memorandum of Understanding (MOU) that adds an additional four years to the term of the current Collective Bargaining Agreement and includes transition rules and a new critical dates calendar. As part of the tentative agreement, the following dates have been established: July 13  start of formal training camps; July 26  Clubs travel to hub cities; August 1  start of Qualifying Round. The tentative agreement is now subject to approval by the NHL’s Board of Governors, as well as the NHLPA’s Executive Board followed by the full NHLPA membership. The respective review and approval processes will take place over the next few days and there will be no further comment until those processes are completed.”

Given the troubled history between these two sides, that they could come to an agreement without a work stoppage under these rushed and dynamic conditions speaks volumes. The extended CBA will now expire on September 15, 2026, per NHL.com.  There are still plenty of hurdles ahead before August 1, but for now, it appears that the NHL will return in less than a month’s time.

NHL, NHLPA Hoping To Finalize CBA, Return To Play Agreement Saturday

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The NHL and NHLPA are hoping that they will finalize a six-year CBA agreement today along with a tentative agreement on Phase 3/4 protocols as well as a critical calendar, according to TSN’s Bob McKenzie. Assuming it’s both finalized and ratified, it should provide the league some long-term economic stability with all the issues that have surrounded the league since the COVID-19 pandemic began.

Assuming the new CBA is agreed on today, it would need to be ratified by the Board of Governors and the full membership of the NHLPA, where the players would get 72 hours, starting Monday.

While some details were leaked yesterday, TSN’s Frank Severalli notes a few more additions to return-to-play discussions as well as other CBA changes:

  • Dates for Phase 3/4 will be finalized with trainings camps scheduled to open on July 13. Teams will then be expected to report to their hub cities in either Toronto or Edmonton by July 26 and games expected to begin on Aug. 1. Assuming there are no setbacks, the Stanley Cup should be awarded in the first week of October. The second phase of the draft lottery is expected to be held on Aug. 10 immediately after the play-in series is over. The NHL draft is expected to be in mid-October, with free agency starting on Nov. 1.
  • Players can opt out of the 24-team tournament for any reason without penalty and will receive a playoff share regardless. Bonus pool money has also doubled with players who lose in the play-in round receiving $20K, while the Stanley Cup winners would receive $240K.
  • As reported earlier, Olympic participation for NHL players will be included for the 2022 Beijing Olympics as well as the 2026 Milan Olympics, pending negotiations with the IOC and IIHF.
  • There will be no changes to signing bonuses. It was believed the NHL was trying to limit signing bonuses in the next CBA to no more than 50 percent of the total contract, but this will not take place.
  • Players will now also be allowed to rehab from long-term injuries from any where they want, unless the team can prove it’s not possible from that location.
  • Teams will also no longer have to place players playing in Europe on waivers when they wish to return to the NHL. That was an issue back in 2013 for Ryan O’Reilly, who opted to play in the KHL while holding out for a new deal while with the Colorado Avalanche. The Calgary Flames signed him to an offer sheet. However, had Colorado opted not to match the offer, the Flames would have been forced to place him on waivers since he was playing overseas before he returned and likely would have lost him.

 

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