11:55 AM: Seravalli has elaborated on the specific nature of the settlement. He reports that Kane will receive a “one-time payment” from San Jose, and as a result, a “cap penalty” will be retroactively applied to last season’s salary cap calculation for the Sharks, who finished last season with just under $5MM in space.
Presumably, the nature of this settlement means the cap implications of the agreement are entirely in the past and will not have an impact on GM Mike Grier’s roster-building decisions moving forward.
11:04 AM: One of the oddities of this NHL offseason was the cloud of a grievance hanging over Evander Kane, the San Jose Sharks, and the Edmonton Oilers. Kane had filed for wrongful termination of his previous contract with the Sharks, while the Oilers had signed him anyway, with the hope that things could be settled and Kane could continue to play in Edmonton.
It appears as though that will be the case, as Kevin Weekes of ESPN reports that a verbal settlement has been reached between the Sharks and Kane. Frank Seravalli of Daily Faceoff expands on the details, explaining that the Sharks are expected to face a salary cap charge because of the settlement, though are mitigating the risk that an arbitration decision could have brought.
When his contract was terminated, Kane had three years and $19MM in salary remaining. His new four-year contract with Edmonton is worth $16.5MM over those same three seasons, leaving a disparity of $2.5MM. Darren Dreger of TSN tweets that the settlement is expected to “come close” to making up that difference, though it is not clear how the cap charge will be applied at this point.
Even if it is just $2.5MM spread over three seasons, it is meaningful. The Sharks currently have less than $250K left under the cap ceiling with a projected 23-man roster, meaning any additional penalties will make things tight for this season. Of course, that is the much-preferred option to having Kane’s entire contract on the books, which would have been possible if he won the grievance and was reinstated.
The Sharks moved on from Kane quite some time ago, stashing him in the minor leagues for the start of last season until they could terminate the contract. He then joined the Oilers on a one-year deal and scored 22 goals and 39 points in 43 games down the stretch. He re-signed with Edmonton and now carries a cap hit of $5.125MM through 2025-26.