NHL Off-Season Thread 2010

[-Jrabbit]

Canadian drama queens, all of you.

The Hawks were really hit hard by post-season bonuses (over $4MM), which count against next year's cap (ouch!). Bowman has now stated that Patrick Sharp isn't going anywhere and is not being offered in trade. He also seems to think he can get Niemi signed before arbitration on the 29th.

That seems to indicate that (1) Campbell is the odd man out - not for his play, but for his contract. And (2) they almost certainly will have to dump Huet. Which means a minor leaguer (Crawford) or a cheap retread as 2nd goalie. A bit scary.

[Flubber]

Canadian drama queens, all of you.

.

The Hawks were really hit hard by post-season bonuses (over $4MM), which count against next year's cap (ouch!). Bowman has now stated that Patrick Sharp isn't going anywhere and is not being offered in trade. He also seems to think he can get Niemi signed before arbitration on the 29th.

That seems to indicate that (1) Campbell is the odd man out - not for his play, but for his contract. And (2) they almost certainly will have to dump Huet. Which means a minor leaguer (Crawford) or a cheap retread as 2nd goalie. A bit scary.

A little scary but if you believe in Niemi, the backup is largely irrelevant. Are you predicting Huet gets waived or traded? There are teams where he could help but I don't know that he is worth the cap hit

[notyoueither]

Kovalchuk (finally) signs with the Devils. For real.

Return to sender

http://www.tsn.ca/nhl/story/?id=328025

NHL rejects Kovalchuk contract for salary cap circumvention
TSN.ca Staff
7/20/2010 9:25:15 PM

The NHL has rejected Ilya Kovalchuk's 17-year, $102 million contract with the New Jersey Devils on the grounds that it circumvents the NHL's salary cap.

Details to Follow…

[-Jrabbit]

I think they'll cut Huet loose if that's what it takes to keep Niemi. They may not have huge confidence in him, but they've had to dump half the roster and Cup-winning goalies aren't exactly easy to come by.

[Asher]

Return to sender

http://www.tsn.ca/nhl/story/?id=328025

NHL rejects Kovalchuk contract for salary cap circumvention
TSN.ca Staff
7/20/2010 9:25:15 PM

The NHL has rejected Ilya Kovalchuk's 17-year, $102 million contract with the New Jersey Devils on the grounds that it circumvents the NHL's salary cap.

Details to Follow…

Impressively ballsy by NHL. About time.

Luongo's contract should get looked at also.

[-Jrabbit]

Ballsy? Or just tired of being laughed at?
The payouts you listed for the Kovalchuk contract were pretty bald-faced and obvious, thumbing the nose at the league.

[Asher]

How is it any different from Luongo's? He gets 1.618, 1.000, 1.000 in his last 3 years of his 12 year contract.

[notyoueither]

I think the problem with Kovalchuk's is the five years at the end playing for league minimum when he is 42.

Luongo's is for the same amount at 42 as Mark Recchi is playing for this year as a 42 year old (1 million) and goes for two years at that rate. Kovalchuk will supposedly play for five years at $550K.

Kipprusoff's also smells a bit, but isn't as outrageous as either of the above.

Also, skaters almost never play into the 40's. Recchi now and then go back to Howe and Hull?? Goalies more frequently play at older ages if they are good.

[notyoueither]

Kovalchuk's is also five years of max (pretty well) and five years of minimum, 11.5 and 550K; average 6.0.. cap hit.

If the league can't say that this one is circumvention without smoking emails they would be hard pressed to stop the flood of these junk deals.

[-Jrabbit]

This just in: Campbell renegotiates to a 30 year deal, Niemi signs for 25 yrs. Through clever accounting, both a negative cap hits.

[Flubber]

Kovalchuk's is also five years of max (pretty well) and five years of minimum, 11.5 and 550K; average 6.0.. cap hit.

If the league can't say that this one is circumvention without smoking emails they would be hard pressed to stop the flood of these junk deals.

Agreed

the other "solution" for future deals is the make the cap hit the higher of the actual salary or some average for the early years-- The average was used to avoid ridiculous back loaded deals or crazy uneven ones circumventing the cap.

It appears the problem with front loaded ones is the deferral or avoidance of the cap hit. Apparently players can retire after 35 and their cap hit disappears??

[Flubber]

Kipprusoff's also smells a bit, but isn't as outrageous as either of the above.

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Kippers finishes 7, 6, 5, 1.5 so its is a much much tamer example. His cap hit of 5.8 is only what a million or so away from his max salary-- The kovalchuk contract is one where years of 11.5-- most of his productive years-- is magically turned into a 6 million cap hit and everyone knows he won't be playing at 42

[notyoueither]

I erred while typing. Confused myself with too many details.

Kovalchuk's goes til he is 44.

It appears the problem with front loaded ones is the deferral or avoidance of the cap hit. Apparently players can retire after 35 and their cap hit disappears??

Yeah, that's the problem. If the player is younger when the deal comes into effect the contract and cap hit end if he retires. If a player is 35 or older when the deal comes into effect the cap hit still applies even if he retires.

[Flubber]

I erred while typing. Confused myself with too many details.

Kovalchuk's goes til he is 44.

It appears the problem with front loaded ones is the deferral or avoidance of the cap hit. Apparently players can retire after 35 and their cap hit disappears??

Yeah, that's the problem. If the player is younger when the deal comes into effect the contract and cap hit end if he retires. If a player is 35 or older when the deal comes into effect the cap hit still applies even if he retires.

I wonder what the logic for that loophole is? It seems to beg teams to make front-loaded deals where the player will certainly retire rather than make a minimal salary annd the team is delighted to see years of a high cap hit evaporate.

It probably was designed to allow/incentivize teams to make 3-4 year commitments to "older players" ie those in their early 30s without fear of the cap hit if they retire but it seems that it allows teams to make cap hits just disappear.

Now my "solution" is this

1. generally use the average salary as the cap hit
2. If certain criteria are met--(on variability of the salary, length of contract, extending beyond age 35 etc etc) then the cap hit for the contract is the actual number per year (or a rolling 3 year average to avoid 1 year abuses etc)

No way Jersey does this contract if they have to take the actual salary as a cap hit. It was a cap avoidance contract no doubt and I for one am happy the NHL grew a pair

[notyoueither]

The league seems to have assumed that teams would not be stupid enough to enter into contracts that last longer than a small mortgage.

Imagine a team signs 4 or 5 of these things. Say they get unlucky and 2 or 3 of their players suffer injuries that have a permanent, severe effect on the players ability to produce.

You can't cut a player for being injured, or for decline in ability to play. The teams can't terminate them. Contracts over seven years can't be insured.

A franchise could be destroyed by these things. Even one of them. Imagine NJ having to pay $11.5 MM a season for several seasons to an invalid.