Archive for Business of Hockey
It’s been less than 48 hours since the Memo of Understanding has been signed, and there have already been two loopholes identified in the new CBA. In his 30 Thoughts this week (one of my personal favorite columns), Elliotte Friedman of CBC identified these two loopholes, and asked Bill Daly about how they would be addressed.
The first loophole is one that’s been talked about for a while, and it’s the sign-and-trade loophole. Currently, teams can re-sign their own players for a year longer than they would get as a UFA, but this doesn’t stop the team from trading the player. This opens up the possibility for a player to re-sign with his own team, then the team can trade him to his eventual destination. This happens regularly in the NBA.
One point of the new CBA that negatively affects the Rangers is the new “Luongo Rule.” This rule was designed to punish teams that circumvented the last CBA and signed players to back-diving deals. The Rangers have one of these deals in Brad Richards, who made $12 million in his two years of his nine-year deal, and sees his salary drop to $1 million by 2017-2018.
The rule states that for players retiring before the expiry of a contract longer than six years, a portion the cap savings from the deal will count against the team. In the Rangers case, Richards has a $6.66 million cap hit, but majority of the money ($57 million) will be paid in the first six years of the deal, with $3 million coming in the final three years.
Richards is signed until he is 39 years old, but his $1 million annual salary begins during his age-37 season. Now, it is unlikely that Richards would retire at age 37, but it is entirely possible that Richards retires with one or two years remaining on his deal. At this point, the Luongo Rule would kick in, and the Rangers would still have to deal with having a retired player on their payroll.
Update 1pm: More details are coming in. Check the bolded bullets after the jump.
Update 11:15am: The deal still includes amnesty buyouts. Each team will be allowed two amnesty buyouts. These buyouts can be used before the start of the 2013-2014 or 2014-2015 seasons. There will be no buyouts prior to this season starting. Yes, that means Wade Redden is on the cap this year. This does not negatively affect the Rangers.
Original Post: It finally happened. After months of a pointless lockout that only proved that the fans are the ones that are left in the cold, the owners and players ended this silly argument at 5am this morning. The key word here is “tentative”, but the fact that they are just drawing up the paperwork is a sign of the end. Over the duration of this lockout, we heard about several sticking points that turned out to not be sticking points at all.
The game is back, and perhaps the most important aspect of this is that there will be labor peace for at least ten years, assuming no opt-out is taken. Mediator Scot Beckenbaugh should be lauded as a hero among hockey fans. His first go-round with mediation wasn’t met with much success, but this time around he got significant movement from both sides and was able to play a major role in getting a deal done.
After the jump, we bulleted the major points from the agreement (bolded bullets are updates from original post). Rejoice folks. We have hockey.
As mentioned yesterday, the NHL is very adamant about sticking to a $60 million cap for the 2013-2014 season. This has a lot of the larger market teams worried, as GMs built their clubs for at least a $70 million cap, not a $60 million cap. The Rangers have a total of 16 players (10 forwards, 4 defensemen, 2 goalies) signed for the 2013-2014 campaign, totaling $51.8 million in cap space.
The organization will need to re-sign Michael Del Zotto (prior to this shortened season), Ryan McDonagh, Carl Hagelin, and Derek Stepan. All four will be on second year deals –and RFAs– which makes them cheaper to re-sign. Without a second buyout the Rangers would need to get these four, plus one more forward and one more defenseman, and they would have approximately $8.2 million to work with.
If the Rangers proceed with buying out a second player (as discussed yesterday), they will have an extra $1.5 million to work with. For the sake of this post, let’s use the $1.5 million projected with the buyout of Mike Rupp. Giving it more though, a Rupp buyout may be required at a $60 million cap. That makes seven total players for the Rangers to sign, and approximately $9.7 million to work with.
News broke yesterday that the NHL and the NHLPA had agreed to two amnesty buyouts before the 2013-2014 season. One buyout will be allowed before the start of this season –if it happens– with the second occurring before the start of the 2013-2014 campaign. The owners appear to be dead-set against a cap higher than $60 million for 2013-2014, so multiple teams will need to use both buyouts to get to that number.
The first buyout for the Rangers will have to be Wade Redden. The new CBA will not allow teams to bury bad contracts in the AHL, so Redden’s full $6.5 million cap hit will be on the books. This one is a no-brainer. Redden, much like Scott Gomez in Montreal, will be bought out. That’s the easy one to guess.
The Rangers may need to use that second buyout to stay under that $60 million cap for 2013-2014. Of the players currently signed, the organization will not be looking to buyout either of their goaltenders, Rick Nash, Marian Gaborik, Brad Richards, Ryan Callahan, Chris Kreider, Marc Staal, Dan Girardi, or Stu Bickel. These guys are either cheap (Bickel), part of a group that the Rangers need to win (everyone else), or both (Girardi).
This past weekend it was confirmed the NHL submitted a new proposal to the union Thursday afternoon. According to reports, the latest offer is approximately 300 pages and is the most “comprehensive proposal” the league has submitted in months.
While the NHLPA takes the time to review the proposal over the weekend, I would recommend everyone remain cautiously optimistic. I’m sure the union will craft a counter offer, since the rumored drop-dead date to start a 48 game season is January 19th. Meaning an agreement would have to be in place sometime during the 2nd week of January. In other words, the NHLPA has time to squeeze the league for a little bit more.
Below are the key highlights of the proposal and what I think are non-issues and key sticking points.
So the NHL announced that all games through January 14 have been canceled, a move that was expected since there was no CBA in place. Ho hum.
There is apparently a drop-dead date in mid-January, and the NHL won’t play less than 48 games this year. In 1994-1995 the NHL played 48 games, with the season beginning on January 20 and ending in May.
If that is the same time frame, then a deal needs to be in place by January 10 at the absolute latest. It’s a fair assumption that there needs to be a ten day buffer between agreement on a new CBA and the start of the season. There needs to be three days for the players to get back to their teams, and another seven days for training camp.
If that drop-dead date is a true date, then we will know by mid-January if there will be a season. The next cancellation could be the last.
Unless you’ve been living under a rock the past week, then you’ve surely noticed that there are a lot of legal terms being tossed around by both sides. These are moves that have been rumored for weeks, so the fact that they have been made is just another step in the process at this point. I still believe this is all posturing, but it’s worth going through the three main items that came up this weekend.
- NHLPA to vote on a DISCLAIMER OF INTEREST. This is a vote to “dis-band” the union. I put disband in quotes because the union itself isn’t disbanding, that is the definition of decertification (more below). A disclaimer of interest is a vote that will see the union terminate representation of the players. In essence, this is the union leaving the players, and Donald Fehr would no longer represent the players.
- Decertification is the exact opposite, it is the players voting to disband the union. This process is incredibly lengthy, unlike a disclaimer of interest.
- Why a disclaimer of interest? Just that – time. Decertification takes weeks. Disclaiming takes days. The end result is the same, and the union would be dissolved. This gives the players the right to file anti-trust lawsuits against the league.
- The NHL counter to decertification/disclaiming is exactly what transpired on Friday: They filed a lawsuit to have the lockout declared legal. It’s a response –in this case a pre-emptive response– to the NHL move to file a Disclaimer of Interest.
- The second item coming from the NHL lawsuit is a declaration that all NHL contracts become void. That means every single player becomes a free agent.
So what does all this mean?
I’m not one to speculate, I’m just one to use logical reasoning to come to a conclusion. Unfortunately in this post, my logical reasoning is leading to speculation, so take this with a grain of salt.
Earlier this morning, Adam Rotter at SNYRangersBlog picked up this little tidbit from the Kalpa website noting that Derek Stepan has returned to the US, stating that Stepan was confident that a season would begin soon. With Stepan’s return to the US, all –well, I believe all– Ranger roster players who were overseas have returned to the US. Rick Nash and Michael Del Zotto returned last week, and Carl Hagelin and Ryan McDonagh have been home for a while.
While Hagelin and McDonagh returned for injury reasons last month, the returns of Nash and Del Zotto with “minor injuries that needed US medical attention” were a bit confusing. After all, Nash stayed with Davos when he bruised his shoulder earlier this year, so why wouldn’t he stay with them if this groin issue was minor as well?
In what is now unexpected news, Darren Dreger is reporting that the NHL will cancel regular season games through 12/30. This comes as no surprise considering the events of last week.
So, what happens first: 1) The NHL season begins, 2) The fiscal cliff issue is resolved, or 3) The Islanders move to Brooklyn.