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Qualifying Offer Deadline Set For October 7

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Given the added pressure applied by the flat salary cap, restricted free agent negotiations will take on even greater importance this off-season. That process is set to begin in just over four weeks, as TSN’s Pierre LeBrun reports that the deadline for teams to submit qualifying offers to their restricted free agents has been set for 4pm CT on Wednesday, October 7.

In order for any team to retain their rights to a restricted free agent, the team must submit a qualifying offer. This value is based on the RFA’s expiring contract; a base salary greater than or equal to $1MM is only owed a matching offer, while a base salary less than $1MM is owed a qualifying offer of 105% of the base (a base salary less than $660K is owed 110%). New this year is also a rule pertaining to those contracts signed after July 10 for the purpose of burning an entry-level contract. Those players may receive a qualifying offer up to 120% of their base salary.  A qualifying offer must also be a one-way contract if the player has played in at least 171 NHL games over the past three seasons combined and at least 51 NHL games in 2019-20, and did not clear waivers this season.

Those RFA’s who do receive qualifying offers are then able to sign those offers when the new league year begins at 11am CT on Friday, October 9. Those offers expire on Sunday, October 18 at 4pm CT. Even if a player does not sign their QO, the issuing team maintains the player’s rights simply by making the offer. A restricted free agent can only be signed to a new team by way of an offer sheet.

As for those RFA’s who do not receive qualifying offers, they become unrestricted free agents and join the open market on October 9. Given the cap crunch that many teams are facing, this has a chance to be an unprecedented year when it comes to the RFA market. Teams will have to seriously think about the opportunity cost of extending or in some cases increasing the salaries of some of their current young players. It will be interesting to see what happens when the deadline approaches on October 7.

Long-Term Injuries Represent Continued Opportunity For Cash-Rich Teams

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The NHL’s salary cap ceiling will be $81.5MM for 2020-21 and will not increase until the league’s hockey-related revenue surpasses $3.3 billion once again. Even then, the number will grow slowly as the difference in escrow is slowly paid off. Despite that cap being the theoretical number that teams can spend to, many around the league will be icing rosters that are quite a bit cheaper.

Frank Seravalli of TSN reported just a few days ago that the Buffalo Sabres, Arizona Coyotes and Pittsburgh Penguins could all be operating with an internal budget much lower (with the Coyotes perhaps going “just south of $70MM”). They aren’t the only three, which could potentially open up even more opportunities for cash-rich organizations that have strong financial backing. Not only will they be able to bring in a roster that adds up to the salary cap ceiling, but players that are earning more money than their cap hits in 2020-21 could potentially be available in trade at a bargain price.

The other opportunity is one that has existed for some time but could be amplified this offseason: long-term injured reserve.

For years now, teams have traded in “dead contracts” in various situations. Trading for players who are under contract but will never play again has been a routine occurrence for teams like the Coyotes and Toronto Maple Leafs—though the two use those opportunities in very different ways. The Maple Leafs have used a strong financial situation to take on the contracts of players like Nathan Horton and David Clarkson, giving them a bit more flexibility when it comes to the salary cap. No, these dead contracts are not just bonus cap space as some imply, but they can create some creative ways to provide wiggle room around the hard cap.

It’s hard to use this to your advantage when you’re already working on an internal budget, especially with contracts that are not fully insured. But for those teams still able to flex their financial might, there will be some obvious candidates this offseason should they want to pursue these LTIR opportunities and can figure out a way to make it benefit their individual situation.

Ryan Kesler has two seasons remaining on his contract with the Anaheim Ducks, which is set to pay him $6.675MM annually. The 36-year-old forward is not expected to play again thanks to multiple hip surgeries, which ended his playing career in 2019 after he battled through pain to reach the 1000-game mark. Kesler does have a full no-movement clause for this season (which will switch to an eight-team no-trade clause in 2021), but that has been worked around in past transactions like this.

The Coyotes themselves still have Marian Hossa on the books for one more season at a $5.275MM cap hit, though his actual salary is still just $1MM for 2020-21. Hossa hasn’t played since a skin condition forced him into retirement in 2017 and could potentially be used as a trade chip if another team is looking for help reaching the salary cap floor this year. Henrik Zetterberg, is another player whose salary is just $1MM in 2020-21, though he carries a $6.08MM cap hit. The Red Wings have moved on from legendary players in this situation before, trading Pavel Datsyuk’s dead contract to the Coyotes in 2016.

Marian Gaborik is much the same, having last played in the 2017-18 season with the Ottawa Senators. The 38-year-old Gaborik is still under contract for next season and carries a $4.875MM cap hit, but is owed just $3.075MM in actual salary. According to a Postmedia report from 2018, approximately 80% of Gaborik’s salary is covered by insurance, making it an inexpensive way for the Senators to build up their commitments, but that doesn’t mean he won’t be used in a deal to get him completely off the books this summer.

One of the newest additions to this retired-but-still-active group is Brandon Dubinsky of the Columbus Blue Jackets, who missed all of the 2019-20 season with a chronic wrist injury. That injury is expected to keep him from ever playing again, but he is still owed $5.85MM for the 2020-21 season.

Of note, the Maple Leafs, who have been the team most notably acquiring these heavy LTIR contracts, will see both Clarkson and Horton come off the books this offseason. That doesn’t by any means indicate that they will go this route again, but don’t be surprised if you see some movement this offseason on players that will never actually hit the ice in an NHL game again.

Photos courtesy of USA Today Sports Images

Latest On Alex Pietrangelo’s Free Agency

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While an early look at the free agent pool each year often results in wild speculation and amazement at the talent potentially available, by the time the offseason actually rolls around there isn’t a lot to actually choose from. Top names are given huge extensions to stay put or dealt to a contender at the deadline who uses their three-plus months to re-sign the star. That’s why it has always seemed like Alex Pietrangelo’s availability was a bit of a pipe dream for every team other than the St. Louis Blues.

The captain of the reigning Stanley Cup champions, in his prime at age-30, coming off a season where he logged more than 24 minutes a night. It was hard to imagine the Blues letting that go in free agency, but as we now stand in mid-September, Pietrangelo doesn’t have a contract for next season.

Speaking to Pierre LeBrun of The Athletic, Pietrangelo called it “a little disappointing” that nothing had been done to this point, and explained “there hasn’t been much in terms of progress” on a new contract. While neither side has ruled anything out—LeBrun even suggests that the Blues will be making another offer soon—the star defenseman has already discussed next steps with his wife should he end up on the open market in a few weeks.

There is no doubt that Pietrangelo is still a game-changing force in the NHL. The Blues captain scored double-digit goals (16) for the fourth straight season and registered 52 points in 70 games. Those 24 minutes a night included more than three on the powerplay and almost two on the penalty kill, coming in as one of the most effective players on the team in both situations. His playoff track record is outstanding, with a league-leading 16 assists last year and another strong performance in the 2020 restart. While he may not be running around hitting opponents, his 6’3″ frame is still more than enough to battle physically when required.

There is a lot to like in Pietrangelo, but that all-around game will also deserve a hefty paycheck wherever he lands. That is likely the sticking point in St. Louis, given the flat salary cap and the fact that the team has already committed $76MM to next season’s roster. Expensive extensions for Justin Faulk and Brayden Schenn have eaten up a lot of the room left by Pietrangelo’s expiring contract, though there are obvious ways to create enough money to bring the captain back, if they want to.

Instead, it seems more and more likely by the day that Pietrangelo will be a free agent on October 9th, with LeBrun speculating that the Toronto Maple Leafs, Vegas Golden Knights, and Florida Panthers could all be in the mix given their respective situations. The connection to Toronto has been discussed constantly (Pietrangelo is from King City, just north of Toronto and once played minor hockey with John Tavares), but the Maple Leafs would have to battle a long list of suitors for the 30-year-old’s services.

Photo courtesy of USA Today Sports Images

GM Quotes: Sakic, Rutherford, Benning

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Although many will blame goaltending performance for the Colorado Avalanche loss in the Western Conference semifinals, GM Joe Sakic is not so quick to blame his netminders, Philipp Grubauer and Pavel Francouz. Both goaltenders were injured in the seven-game series against the Dallas Stars, leaving Michael Hutchinson to fend for himself. Grubauer also missed time due to injury in the regular season and many felt his play was affected. Overall, the pair played well this year and both are signed through at least next season at a valuable rate. While many have speculated, including Sportsnet’s Elliotte Friedman and Jeff Marek, that the club could still use their considerable cap space to bring in a new starting goalie for next year, Sakic says otherwise. Speaking with Mike Chambers of the Denver Post, Sakic offered support for his tandem and stated that he does not plan to bring in another keeper for next season:

They both had good years. Unfortunately, they both got hurt at the wrong time, but neither of those injuries are injuries you have to worry about. Train hard in the summer and make sure it doesn’t happen again. You can’t predict injuries, but no, they both had good stretches and we expect that next year.

Sakic revealed that Francouz was already dealing with an injury when he replaced the injured Grubauer in the postseason and tried to battle through the pain as long as he could. Fortunately, he stated that both goalies – and in fact all injured Avs – are expected to be back at full strength for next season. As a result, Sakic does not anticipate chasing a new goalie on the free agent or trade markets, as he is content with his duo’s performance, blaming only the poor timing of their injuries.

  • Pittsburgh Penguins GM Jim Rutherford made yet another major trade on Friday, his second already since his team was eliminated in the qualifying round, when he dealt Nick Bjugstad to the Minnesota Wild in a salary cap dump. Talking to The Athletic’s Josh Yohe about a deal that on paper seemed to net Pittsburgh little in return – a conditional seventh-round pick and only half of Bjugstad’s 2020-21 cap hit ($2.05MM) – Rutherford made it clear that he is simply doing what he can to create enough cap space as to allow the Penguins to be active in free agency:

Well, I’d really like to be able to get there, to be at the point where we can do something in free agency, but we aren’t there yet… I want to be able to be active on that day, but it’s going to be difficult to get to that point… You’ve got to realize that teams don’t know how much money they’ll be making next season and moving forward. Plus, teams all thought the salary cap for next season was going to be anywhere between $3 million and $6 million higher than what it is. So, everyone is in a pretty difficult situation, and that includes us… First things first, we need to get to a point where we are comfortable that we’ll be compliant with the cap. We’ll see what happens between then and now.

  • If there has been any one theme to Vancouver Canucks GM Jim Benning’s comments all season long, it has been that he would like to keep as many of his current players on the team as possible, including his pending unrestricted free agents. While much of that focus has been on a trio of top players in Jacob Markstrom, Chris Tanev, and Tyler Toffoli, Benning has thrown his support behind role players as well. The latest name that Benning hopes to squeeze back on the roster next season is Josh Leivo, who lost much of his season to a fractured knee cap but was working his way back into game shape when the Canucks were eliminated in the Western Conference Semifinals. Benning knows what Leivo can do when healthy and in an interview with TSN Radio 1040 he stated that he hopes to give him another chance in Vancouver:

He played well for us. We haven’t ruled out re-signing him… He’s a big body, shoots the puck well, is a smart player… His rehab has gone well… he’ll be ready to play next year for us.

Minnesota Wild Acquire Nick Bjugstad

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8:00pm CT: The terms of this trade have now been revealed by Sarah McLellan of the Minneapolis Star-Tribune and certainly seem to tilt the favor even more toward Minnesota. First, the Penguins will retain half of Bjugstad’s salary this year, the final season of a six-year, $24.6MM deal. As a result, Pittsburgh will only dump $2.05MM in cap salary while the Wild get a full year of Bjugstad at a bargain price. Second, the Penguins will only receive the conditional seventh-round pick if Bjugstad plays in at least 70 games or scores at least 35 points this season. Otherwise, the team does not receive any return. If this trade is indication, shedding salary this off-season is going to be easier said than done.

7:00pm CT: Nick Bjugstad, one of the most well-regarded prospects to come out of the Minnesota high school ranks this century, is headed home. The Minnesota Wild announced that they have acquired the 28-year-old center from the Pittsburgh Penguins. In what is all but a salary cap dump, the Penguins only received a conditional 2021 seventh-round draft pick.

Bjugstad is a polarizing player, but certainly one worth risking a late pick and one year of term on. Named Mr. Hockey in 2010 as the best player in Minnesota high school, Bjugstad went on to be drafted in the first round by the Florida Panthers later that year. After starring for the of Minnesota for three years, Bjugstad joined Florida and  immediately became a contributor. He recorded 38 points as a rookie, even garnering Calder Trophy votes, and totaled 191 points in 394 games with the Panthers over parts of seven seasons. While these were solid numbers, they weren’t exactly what Florida was hoping for from one of their core players. In 2018-19, Bjugtad was traded alongside Jared McCann to the Penguins for Derick Brassard, Riley Sheahan, and three draft picks. His time in Pittsburgh has been forgettable, marred by injury and inconsistency that left him with just 16 points in 45 games to show for a season and a half.

Yet, Bjugstad is healed and expected to be fully healthy for the start of the 2020-21 season for Minnesota. No one will blame Pittsburgh for dumping Bjugstad’s $4.1MM cap hit (and $5.25MM salary) as they face a stiff cap crunch, but the Wild could easily wind up with the better side of this deal if Bjugstad can return to form back at home in the Twin Cities and produce 40-50 points as he has several times before. As the Wild look to replace the experience and two-way ability of Mikko Koivu down the middle this season – and quite possibly Eric Staal next season – Bjugstad is a prime candidate. At 6’6″ and 215 lbs., Bjugstad is a menacing presence on the ice and has the proven ability to take the puck with both brute force and finesse. After a pair of down seasons, Bjugstad may not be the most exciting name, but he could be primed for a major comeback this year with the Wild and could potentially earn himself a long-term extension with his hometown team in the process.

 

Sabres Coaches Declined Pay Cut, Team Considering Internal Salary Cap

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It should not surprise anyone that NHL teams across the league are hurting financially. A shortened regular season, a postseason without any ticket revenue, and no idea when fans may be able to return to games has every franchise scrambling to cut costs wherever possible. For some, that has included asking coaches and staff members to take pay cuts or forego bonuses. For others, it means reduced spending on player salaries this coming season – an internal salary cap. As TSN’s Frank Seravalli writes, these difficult decisions do not lie only with the NHL’s small or non-traditional markets either. The Pittsburgh Penguins are reportedly considering a lower internal salary cap for 2020-21, while the Jack Adams-winning head coach of the Boston Bruins, Bruce Cassidy, and his staff declined playoff bonuses. In total, Seravalli reports that 17 teams have made some sort of meaningful pay cut to their coaching or front office staffs, while several others will be forced to cut player salaries this off-season.

However, a team can only ask so much and now the Buffalo Sabres and owners Terry and Kim Pegula are getting push-back from key members of their club. The Pegulas did not pull any punches when it came to cost cutting earlier this summer. The team fired 22 hockey operations staffers back in June, including then-GM Jason Botterill, and reduced their front office staff to a skeleton crew. Yet, even before that they had cut the pay of head coach Ralph Krueger and his staff by 20% from April 1 to July 13. Seravalli reports that at the end of that period, the team requested that the coaches take a 25% pay reduction for another extended period of time; they declined. While most coaching staffs have been willing to take a pay cut to prevent other personnel losses in the front office, Krueger and company sat and watched as their hockey operations staff was decimated even as they sacrificed a significant portion of their pay. As a result, they refused to do it a second time, perhaps knowing there were no more hockey jobs left for the Pegulas to cut. Seravalli notes that this is the first reported instance of a coaching staff rejecting a voluntary pay cut.

While the Buffalo coaches and front office may be safe, the need for further budget cuts is likely to affect how much talent they have to work with next season. Seravalli reports that the team is now planning to enforce an internal salary cap in the low $70MM range, potentially putting payroll $10MM under the $81.5MM salary cap ceiling. On paper, this may not seem too bad for the Sabres, who have just over $48MM committed to their 2020-21 roster. However, that amount covers just ten players, as Buffalo counts seven unrestricted free agents and six restricted free agents among their regulars from this past season. The team is looking at as little as $22MM or so on their internal salary cap to fill 13 roster spots, and new contracts for RFA’s Sam Reinhart, Victor Olofsson, Brandon Montour, and Linus Ullmark are bound to eat up the vast majority of that space. While every team in the NHL is struggling due to the impact of COVID-19, the Sabres had already been struggling for a lot longer than most and there does not appear to be an end in sight.

NHL Announces Official Dates And Times For 2020 Draft, Opening Of Free Agency

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With the 2020 postseason proceeding ahead of schedule, there has been reporting and considerable speculation that the league would move up the dates of the delayed 2020 NHL Entry Draft and the beginning of the new league year and opening of free agency. The NHL has followed through on that speculation, officially announcing today the new dates for these events. The Draft will take place on October 6-7, and the new league year will commence on October 9.

The first round of the NHL Draft will begin at 7pm ET on Tuesday, October 6, a departure from its usual Friday night slot. Similarly, the second day of the draft, comprising rounds 2-7, will take place on Wednesday, October 7 rather than it’s typical Saturday placement. Otherwise, the structure of the draft stays the same. One key difference though is that all draft operations will take place virtually.

As for the start of free agency, the July 1 unofficial holiday will instead take place on Friday, October 9. Other than a delay of more than three months, the opening of free agency will not be much different; at 12pm ET, the signing window will open and free agents will be free to speak with teams and sign contracts. What may be very different however is the pace at which players will sign. While there is usually a massive rush of contracts when free agency opens, there are factors working against a fast-paced market. First, the NHL’s new CBA has eliminated the free agent contact period, meaning teams and available players cannot formally communicate until after free agency officially opens. Second, the flat salary cap will force the majority of NHL teams to be very careful with their roster operations this off-season, potentially prioritizing re-signing their own restricted free agents before throwing money at unrestricted free agents. This combination could produce an abnormally slow start to free agency, but October 9 will be an intriguing day league-wide nonetheless.

Canucks Notes: Markstrom, Virtanen, Trades

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The Vancouver Canucks went further in the 2020 playoffs than many expected, coming within a single game of the Western Conference Final. GM Jim Benning and head coach Travis Green spoke with the media today (audio via TSN radio) about where the team goes from here, with Jacob Markstrom’s future front and center. The goaltender is a pending free agent who is coming off an excellent season but was injured in the second round leading to Thatcher Demko’s coming-out party. Even with Demko’s performance, Benning was clear about his desire to bring back the more veteran goaltender:

We’re going to try and figure out a way that makes sense for us and makes Jacob and his agent happy. Try and figure out a deal to get him signed. We want him back. We’re going to start working on that this week.

Markstrom, who could potentially hit the free agent market as the best available goaltender depending on some other situations, is coming off his best season in the NHL. Through 43 appearances he went 23-16-4 with a .918 save percentage, a performance that made Benning call him the team’s MVP. Demko is signed for next season at just a $1.05MM cap hit and Benning pointed out multiple times the fact that the Canucks believe they need two strong goaltenders to handle the tough travel schedule of the Western Conference.

  • As for another pending free agent, Jake Virtanen, Benning was a lot less impressed. The 24-year old forward is going to be a restricted free agent for the second time as his two-year bridge deal comes to an end, but failed to make much of an impact in the postseason for Vancouver. Virtanen had his best regular season performance with 18 goals and 36 points in 69 games but scored just three points in 16 postseason matches. Benning was on Sportsnet radio and explained that he was expecting more from Virtanen in the playoffs. Add that to the GM saying that he might have to move on from some young players this offseason in order to recover some draft picks and you can see why the speculation regarding Virtanen’s future in Vancouver instantly exploded.
  • In terms of creating salary cap room, Benning won’t be moving draft picks to do get rid of some of the more onerous contracts on the books. Vancouver is already without their first and second-round picks this year and it’s clear the front office wants to add, not subtract ahead of the draft in early October. Remember, though they have quite a bit of cap room for next season, the Canucks are staring down a 2021 offseason that will see Elias Pettersson, Quinn Hughes and Demko hit restricted free agency all at the same time.

Snapshots: Overages, Bowness, Sodergran

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The suspension of the last part of the 2019-20 season will cause financial ramifications for years to come, most notably the flat salary cap ceiling. Several teams dealing with that cap crunch will also have to deal with some bonus overages, as Frank Seravalli of TSN outlines in his latest piece. These are performance bonuses that have been awarded, but that would push teams over the salary cap ceiling. Normally these are put against the next season’s cap, but in this unique season they can now be split over the next two years.

The team with the biggest overage is the Dallas Stars, who have already racked up a $2.95MM penalty. That number could increase considerably—by another $1.65MM—should Miro Heiskanen earn the Conn Smythe trophy this season.

  • Speaking of the Stars, head coach Rick Bowness spoke today about his future with the organization. Dan Rosen of NHL.com reports that Bowness has agreed to wait until after the playoffs to speak with GM Jim Nill about a contract extension, however long that may take for the surging Stars. Bowness is still working under an interim tag after taking over from Jim Montgomery midseason.
  • The Los Angeles Kings have loaned Johan Sodergran to Almtuna in Sweden’s second league for the next few months, with an expectation that he will return in time for the 2020-21 season. Sodergran, a sixth-round pick in 2018, recorded seven points in 48 games for the Ontario Reign.

Free Agent Notes: Top-10, Pietrangelo, Crawford

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After the morning news was dominated by the Toronto Maple Leafs and Pittsburgh Penguins completing a trade, you might be wondering what is next for clubs looking to improve their lot. While the trade market is apparently open, free agency—set to start in October—is where a number of exceptional names will be available for nothing more than money. Frank Seravalli of TSN breaks down the ten names he believes are at the top of the list, including three different Florida Panther forwards.

Mike Hoffman, Evgeni Dadonov and Erik Haula are all set to hit the open market and it is not clear if the Panthers will try to retain any of them. In fact, it’s not very clear what the Panthers want to do with any members of their team given the uncertainty in the front office. Florida is still on the search for a new general manager, who will have to quickly make some tough decisions (or engage in brief negotiations) with his trio of pending free agent forwards.

  • The very top name on Seravalli’s list however is Alex Pietrangelo, the St. Louis Blues captain and one of the best defensemen in the entire league. Pietrangelo actually spoke with reporters including Jeremy Rutherford of The Athletic today and explained how much the Blues franchise means to him after a decade manning the blueline in St. Louis. Pietrangelo has always indicated a desire to remain in St. Louis, but in a flat-cap world it’s not going to be easy for the Blues to pull off. The team currently has nearly $79.5MM in salary committed to next season already including expensive extensions that kick in for Brayden Schenn and Justin Faulk. That doesn’t leave room for Pietrangelo, meaning they’d have to clear the deck if they want to bring the 30-year old back.
  • Speaking of players who want to stay put, Corey Crawford was clear in his intentions when speaking with reporters today. As Mark Lazerus of The Athletic reports, Crawford explained that he’s “definitely leaning towards staying in Chicago” but that he does want to be a starter still. Crawford admitted that a short-term deal might work for both him and the Blackhawks—which makes sense given the salary cap situation and the fact that Crawford will turn 36 in December.

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