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NHL Salary Cap Raised To $75 Million

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The NHL’s salary cap ceiling has been raised by $2 MM to $75 MM, according to NBC and various sources. The NHLPA voted on this decision back on June 16th according to TSN’s Pierre Lebrun, and the results of that vote resulted in next season’s total. The floor (or minimum) will be set at $55.4 MM.

The increase is slightly less than what many fans had hoped for, though the figure had been floated around for quite some time. This is only a 2.6% increase in the ceiling, which is less than the option the NHLPA could have opted for – an automatic 5% yearly increase. The stagnation in the cap overall is concerning to many teams who are very near the cap and/or have players due raises in the near future.

Many teams have been operating under the assumption that the ceiling would be around this number, so it shouldn’t affect any single organization too greatly. The team that will be most impacted is the Chicago Blackhawks, who are already over that ceiling. Teams such as the Washington Capitals and Tampa Bay Lightning highlight a group that will struggle to get a compliant roster in the near future with such little room to maneuver.

Latest On Salary Cap Limits For 2017-18

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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.

Chris Chelios Leaving Red Wings

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Chris Chelios is leaving the Detroit Red Wings thanks in part to a possible opportunity with the NHLPA, reports TSN’s Darren Dreger (video link).  Chelios was a part-time assistant coach, but with his contract ending, both parties chose to sever ties in light of Chelios’s new prospects.

Chelios has worked for the Red Wings organization since his retirement in 2010, and most recently as an assistant since 2015. Not a true assistant coach, Chelios adopted part-time duties to remain closer to his family. The former NHL defenseman had been linked to NHLPA positions before, and had his contract terminated early—it was set to expire at the end of this month—because of his involvement with player agents Rich Winter, Anton Thun and Kurt Overthardt on how to strengthen the union.

Dreger mentions that there may even be a role within the NHLPA for Chelios as an ombudsman, a position that does not report to the executive director, but rather to the 30 player representative board. The NHLPA created this position as part of a system of checks and balances against executive director impropriety, and to prevent an Alan Eagleson-esque situation.

Chelios cannot hold both a position with the Red Wings and be involved in this process because it would create serious conflicts of interest. The NHLPA serves to protect players’ interests in the face of managements’ transgressions, so employees cannot fully represent both sides of the coin.

The NHLPA has a history with Chelios. In 2006, Chelios, along with Trent Klatt and Dwayne Roloson, sued the NHLPA in U.S. Federal Court to remove then-current NHLPA executive director Ted Saskin. Saskin succeeded Bob Goodenow as NHLPA director during the 2004-05 NHL lockout, though Goodenow did not formally step down until two weeks later. The Court eventually dismissed the case because it should have been brought in Toronto, where the NHLPA was located.

Though he now isn’t part of the Red Wings organization, Dreger makes it clear that there is “no bad blood” between the two sides and that a reunion could be in order if it doesn’t work out with the NHLPA.

Evening Notes: Chayka, Boogaard, Oilers

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Coyotes GM John Chayka spoke with Craig Morgan of Arizona Sports and provided decent insight into the team’s strategy headed into the summer. Chayka is the youngest general manager in the league and has become infamous for his cap management strategies. Chayka seems highly interested in acquiring a player from a team worried about losing an asset for nothing. Although many other GMs will be seeking to accomplish similar deals, Chayka looks to be relatively aggressive on this front. He tempered Mike Smith trade speculation, saying “there’s a value to our team that Mike has, being an All-Star and our rock; his value is extremely high but if someone wants to pay an even higher value for him, that’s the industry.” There is also no news as to Shane Doan’s retirement decision. Chayka emphasized the increasing urgency among all GMs as the expansion draft seems to have every organization slightly on edge.

  • The case for wrongful death filed against the NHL on behalf of the late Derek Boogaard has been tossed out, according to the Star-Tribune. Boogaard died at the age of 28, after a long enforcer career with the Minnesota Wild and New York Rangers. He received multiple brain injuries and relied on opioid pain killers as treatment, which led to an addiction that eventually resulted in his demise. Fighting has declined substantially over recent years in the NHL, as both the NHL and NHLPA are looking to reduce incidents of traumatic brain injury. The debate over the role of violence in the sport remains a hot-button issue, but players still generally vote in favor of fisticuffs when surveyed. That the Boogaard case has been dismissed on technicalities is a setback for safety advocates, as there is a looming lawsuit in U.S. courts which seeks to prove that the league has been reckless in its regard for player safety in relation to concussions. Whether these off-ice lawsuits will impact the next Collective Bargaining Agreement, or the way penalties are called, remains to be seen.
  • The NHL released the results of a fan vote for the greatest team of all time in honor of the 100 year anniversary – with the 1984-85 Edmonton Oilers taking top honors. The 1991-92 Pittsburgh Penguins came in at number two, followed by the 1976-77 Montreal Canadiens.

Potential Buyout Options

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NHL fans are looking ahead to an offseason which will likely see a lot of movement, but will also feature teams tight up against a stagnant cap ceiling. Buyouts are always an option teams will weigh, although certainly an avenue of last resort. Dumping a contract isn’t as simple as taking the player’s salary off the books. They will count as 1/3 or 2/3 of the original cap hit, for twice the remaining years on that contract. So if a 26 year old player has two years remaining at $3 MM, he will cost $1 MM for four years against the team’s cap total. That means a substantial savings of $2 MM, but is a habit GMs will not want to fall into. For players over 26, the 2/3 rule applies, and that same player would count for $2 MM each of the next four seasons. In such a scenario, the savings are rarely worth it. However, teams can be backed into this corner when trade options completely vanish.

For the 2017 offseason, there is an extra component at play – the expansion draft. Players with full No-Movement Clauses must be protected by their team, exposing potentially better, younger, cheaper options to selection by the Vegas Golden Knights. Prior to the expansion draft, on June 15-17th, there will be a buyout window. Consequently, there will most likely be at least one case where a player who otherwise would not have been bought out will be due to a team’s long-term prospects. This certainly isn’t what the NHLPA had hoped for when they agreed to another 20+ players in the league with the expansion of Vegas, but is an unfortunate unforeseen consequence. Here are just some of the players who could be facing the buyout option this summer:

 

Antti Niemi – Dallas Stars

Both Niemi and fellow goalie Kari Lehtonen should be expecting this fate. With Ben Bishop signing a massive six-year contract with Dallas, their time as starters in this league look all but complete. Both are paid an asburd amount of money, but Niemi’s $4.5 MM is the more unpalatable total. His .892 save percentage through 37 games this year was only edged in ineptitude by Michal Neuvirth among tenders who got more than 15 starts. At his pricetag he is virtually unmoveable, and with only one year remaining on his contract, the hit would be worth it for 2 seasons to keep him away from the team.

Kevin Bieksa – Anaheim Ducks

Bieksa might seem an odd inclusion on this list, considering his age, but it should be remembered that he has a No-Movement Clause, meaning he would need to be protected by the Ducks. Needing to also protect Sami Vatanen, Cam Fowler, and Hampus Lindholm, even under the 8 player protection model, this would likely expose Josh Manson. Considering his play in this post-season, and Bieksa’s complete inability to remain healthy, this is a darkhorse candidate for a last-minute buyout. Bieksa’s Corsi is the worst on the backend for his team and his skating has looked quite problematic of late. The flare of his Vancouver days seems long past and with only one year remaining at $4 MM, he seems an easy target to eliminate.

Scott Hartnell – Columbus Blue Jackets

Hartnell is considered a gutsy character player, a net-front presence, and a veteran leader. However, he has seen his production shift from being that of a decent offensive threat (28 G, 32 A in 2014-15) to an average third liner (13 goals, 24 A in 2016-17). His problems run deeper, though, as his brand of physical hockey has taken its toll on his play. No longer quite the intimidating wrecking-ball of his Philadelphia days, Hartnell is not as effective on the forecheck as he once was. The reason he is included on this list, however, is because Columbus has a lot of young, promising players they will wish to protect in the expansion draft, and Hartnell has a No-Movement Clause. At 34 years old and in a quickly diminishing role, it will be difficult for GM Jarmo Kekalainen to save a space for Hartnell. With toughness adequately filled by hard-nosed forwards in Brandon Dubinsky, Boone Jenner, Nick Foligno, and Brandon Saad, he seems even more superfluous. Assuming Dubinsky (NMC), Brandon Saad, Jenner, Foligno (NMC), Cam Atkinson, and Matt Calvert are protected, Hartnell’s inclusion would sacrifice the 24 year-old William Karlsson. That’s a difficult concession for the Jackets to make, even if the youngster took a step back offensively this season. If they would opt to buy out Hartnell’s contract at $4.75 MM, it would mean $3.16 MM in dead space for 4 more seasons, a hefty pill to swallow.

 
There are certain to be other candidates for buyouts as well, but these are three that could easily find themselves looking for a new contract come June 18th.

2020 World Cup Tied To New CBA

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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.

NHL Fires Back At NHLPA In Concussion Lawsuit

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In the ongoing lawsuit between the NHL and over 100 former NHL players, the league has begun to try and shift blame to the NHLPA for impeding rule changes that may have better protected its members. In the latest report from Rick Westhead of TSN who has been following this story from the beginning, he includes sections of an affidavit from Deputy Commissioner Bill Daly filed with the court on Thursday. The plaintiffs are trying to get the case certified as class action which—similar to the recent certification of the OHL lawsuit—would automatically include over 5000 former players as plaintiffs.

In the affidavit, Daly writes:

A history of the playing rules, supplemental discipline, equipment standards, playing environment characteristics and/or the league’s approach to player safety that fails to consider and account for the NHLPA’s role with respect to these matters is inherently incomplete and profoundly misleading.

Westhead also added on Twitter documents that point to players refusing concussion testing in the past, adding to the idea that it was the players themselves who slowed down concussion prevention and diagnoses. Recently, the courts denied the NHL’s request for all research and communication from Boston University’s study of CTE, saying that it would be a “staggering” task for the study to complete because of the retractions they would have to make on each document to protect patient confidentiality.

Should the case be certified class action, the NHL could possibly be liable for much more than if individual players had to pursue individual claims. Westhead reports that the courts could decide this summer over whether or not to certify it. While this is obviously far from decided at the moment, it does seem to point to a bigger strategy by the league to implicate that the players themselves are a party to any and all concussion issues the hockey world has faced.

Morning Notes: Ritchie, Bjork, Lockout

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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.

Snapshots: Olympics, Gabrielle, Hemsky, Meier

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If you thought the Olympic story was over after the league announced yesterday they would not participate in the 2018 Winter Games, you were wrong. Almost every player around the league was asked about their stance on the tournament, and some of the strongest opinions once again came from Alex Ovechkin and the Washington Capitals. When Ovechkin was pressed, he repeated his intention on attending the tournament whether the NHL allows him to or not. “Somebody going to tell me don’t go, I don’t care, I just go” Ovechkin told Chris Johnston of Sportsnet before going on to say he believes the NHL is bluffing.

There is chance the NHL will install fines or suspensions for players who do go, and Rick Westhead of TSN reports that Donald Fehr, the head of the NHLPA, is already telling agents that he expects the NHL to try and stop them in one way or another. Westhead expects the players’ union to fight any such “impromptu rule” though.

  • The Boston Bruins may get a closer look at prospect Jesse Gabrielle soon, as Mark Divver of the Providence Journal reports that the Prince George winger will join the AHL Bruins as soon as this weekend. Prince George was knocked out of the WHL playoffs after another solid season by Gabrielle. He spent time with Providence last spring before heading back to junior, but next year will likely play all season in the AHL. The young winger has offensive upside and an in-your-face style that Bruins fans both love and expect from their young players.
  • Mike Heika of the Dallas Morning News gives us an explanation on the Justin Dowling transaction carousel, reporting that Ales Hemsky will be out for the remainder of the season. The Stars had thought he was ready to return to the lineup, but instead he will sit out the last few games and head into the summer as a pending unrestricted free agent.
  • Despite sending Timo Meier to the AHL yesterday, Curtis Pashelka of the Mercury News reports that he has been brought back up by the team today. It must have been a cost-saving measure, though the point still stands that Meier has struggled to get quality chances despite racking up shots on net. The youngster will look to break his goalless drought if he gets back into the lineup.
  • Flyers’ prospect German Rubtsov won’t be getting any more time on the ice this year, as he has been shut down following hand surgery to repair a broken bone. The young forward had 22 points in 16 games since coming over from the KHL in January. He signed his first entry-level contract a month ago, and looks like a can’t miss prospect for the Flyers going forward.

Official Responses to NHL Olympic Announcement

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Earlier today the NHL announced that it would not allow its players to participate in the 2018 Winter Olympics. This announcement came after months of public negotiations involving the IOC, IIHF, NHLPA and the NHL.

The NHLPA released a response to the NHL’s announcement, and we’ve reproduced it in full below:

The players are extraordinarily disappointed and adamantly disagree with the NHL’s shortsighted decision to not continue our participation in the Olympics.

Any sort of inconvenience the Olympics may cause to next season’s schedule is a small price to pay compared to the opportunity to showcase our game and our greatest players on this enormous international stage. ​

A unique opportunity lies ahead with the 2018 and 2022 Olympics in Asia. The NHL may believe it is penalizing the IOC or the players, or both, for not giving the owners some meaningful concessions in order to induce them to agree to go to PyeongChang. Instead this impedes the growth of our great game by walking away from an opportunity to reach sports fans worldwide.

Moreover, it is doing so after the financial issues relating to insurance and transportation have been resolved with the IOC and IIHF. The League’s efforts to blame others for its decision is as unfortunate as the decision itself. NHL players are patriotic and they do not take this lightly. A decent respect for the opinions of the players matters. This is the NHL’s decision, and its alone. It is very unfortunate for the game, the players and millions of loyal hockey fans.”

The NHLPA clearly disagrees with the NHL’s position, and lays the non-participation solely at the feet of the NHL.

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