Not every money-losing owner is a Leipold

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Let’s start off with a little math:

If each team in the NHL had spent just enough to reach the salary cap floor in 2011-12, 57 percent of hockey-related revenue would’ve gone to the players.

Last year, 57 percent of hockey-related revenue was $1.87 billion.

On the other hand, if each team in the NHL had spent to the salary cap ceiling in 2011-12, 57 percent of hockey-related revenue would’ve gone to the players.

Last year, 57 percent of hockey-related revenue was $1.87 billion.

Sometimes it seems like not everyone understands this. Or, they’re choosing not to publicly.

“We’re agreeing to pay our players a certain percentage of our revenues. That’s a fixed dollar amount,” deputy commissioner Bill Daly told FAN 590 earlier in the week.

Again, “That’s a fixed dollar amount.”

In the new, yet-to-be-negotiated CBA, the NHL wants a reduction in the percentage of revenues going to the players because the league thinks 57 percent is too high. Such a reduction would result in the loss of salary for players via escrow, which is used to reconcile any “shortfall” or “overage” to the players as it relates to the revenue split.

Losing money to escrow would not be a new thing for the players. Five times since the 2005 CBA was introduced the players haven’t received as much as their contracts said they were supposed to receive.

Of course, twice they received more than their contracts said they were supposed to receive. You just don’t hear them talk about that very much.

Not once have the players received the exact amount their contracts said they were supposed to receive, because another contract – the CBA – overrides all.

So to those arguing it’s the damn owners that are paying the players too much, the owners, as a group, don’t have a choice. Last year, the players were going to get $1.87 billion, regardless of what total player salaries added up to on paper.

As individual teams, however, the owners have a choice. Take the case of the Minnesota Wild, which now boasts one of the league’s highest payrolls thanks to the massive contracts the club awarded Zach Parise and Ryan Suter.

That, for lack of a better term, may have been dumb. Minnesota is a mid-level market; it’s not Toronto or New York.

“Some clubs may spend poorly,” admits Daly.

But Wild owner Craig Leipold believed it was the kind of investment that needed to be made in order to reconnect with fans, get the team back into the playoffs and kick-start future revenue growth. And the only way he was going to get those players was to give them the kind of front-loaded deals the NHL wants to do away with.

Absolutely Leipold was hoping to claw back some of that salary in a new CBA. Was it distasteful? Perhaps. But Parise and Suter knew the score. So the players can spare us with the babe-in-the-woods routine (h/t FBI agent in Goodfellas).

From a public-relations standpoint, what Leipold did looked awful, and you can bet Gary Bettman wasn’t pleased. Most everyone would agree that owners who take massive financial gambles should have to feel serious financial hurt if they don’t work out. That’s business. And no owner should be guaranteed a profit every season.

But it’s unfair to throw Leipold in with all the other small- to mid-market owners that adhere to their self-imposed budgets. It’s those owners that need help, be it through more revenue sharing or reduced player expense. Chances are it will be through both. To which degree of each is the question.

Ultimately a new CBA won’t guarantee every team a profit, and nor should it. If an owner spends his money poorly, then that owner should lose money.

But as it stands, there are owners that could spend their money well and still lose money, and that’s not a sustainable model.

Fortunately, a deal is possible — this isn’t a broken industry.

Which is what makes all this so frustrating. We can see the deal through all the rhetoric and posturing and pandering to fans.

It just needs to happen.

WATCH LIVE: 2017 NHL Draft – the first round

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Will the New Jersey Devils select Nico Hischier or Nolan Patrick with the first overall pick? Could another team swoop in and trade for a high choice, whether it be from the Devils, Philadelphia Flyers, or someone else?

On a day of huge, often shocking trades, the first round of the 2017 NHL Draft still has potential to bring more twists and turns.

You can watch another important night in the NHL unfold on NBCSN beginning at 7 p.m. ET on Friday.

CLICK HERE TO WATCH LIVE

Also, check out PHT’s draft tracker here. Note the current order of selections below.

PHT’s 2017 NHL Draft Tracker

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From the United Center in Chicago, it’s the first round of the 2017 NHL Entry Draft!

Click back here throughout the night for all the latest picks, complete with draft profiles, stories and video from tonight’s broadcast on NBCSN.

1. New Jersey Devils
2. Philadelphia Flyers
3. Dallas Stars
4. Colorado Avalanche
5. Vancouver Canucks
6. Vegas Golden Knights
7. New York Rangers (from Arizona)
8. Buffalo Sabres
9. Detroit Red Wings
10. Florida Panthers
11. Los Angeles Kings
12. Carolina Hurricanes
13. Vegas Golden Knights (from Winnipeg)
14. Tampa Bay Lightning
15. Vegas Golden Knights (from NY Islanders)
16. Calgary Flames
17. Toronto Maple Leafs
18. Boston Bruins
19. San Jose Sharks
20. St. Louis Blues
21. New York Rangers
22. Edmonton Oilers
23. Arizona Coyotes (from Minnesota)
24. Winnipeg Jets (from Columbus via Vegas)
25. Montreal Canadiens
26. Chicago Blackhawks
27. St. Louis Blues (from Washington)
28. Ottawa Senators
29. Dallas Stars (from Anaheim)
30. Nashville Predators
31. Pittsburgh Penguins

Capitals re-sign Oshie for eight years, $46 million

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T.J. Oshie will be staying with the Washington Capitals for a very, very long time.

The team announced on Friday evening that it has signed the veteran forward to an eight-year contract that will pay him an average annual salary of $5.75 million.

That comes out to a total dollar amount of $46 million.

“T.J. is an invaluable member of our team and we felt it was imperative for us to re-sign him in a competitive free agent market,” general manager Brian MacLellan said in a statement released by the team. “T.J. is a highly competitive player with a tremendous skill set; he epitomizes the kind of player our team must have in order for us to continue to put ourselves in a position to compete in this League.”

Oshie is coming off of a career year for the Capitals that saw him score 33 goals to go with 28 assists in only 68 games.

While the team is almost certainly ecstatic to bring him back (and better off in the short-term), that eight-year commitment could be a risky one long-term. While Oshie is still a top-line player and was one of the most productive forwards in the league this past season, he is also already 30 years old. Giving that much term to a player that has already celebrated his 30th birthday usually ends up becoming an issue before the contract expires. But that is still pretty far down the road, and the Capitals are a better team in the short-term with him back in the mix. If he proves to be an essential ingredient in maybe bringing a Stanley Cup to Washington, they certainly won’t complain about maybe having to deal with a bad contract in five or six years.

In two years with the Capitals he has 59 goals and 48 assists (107 points) in 148 games.

His re-signing with the Capitals also puts a pretty significant dent in the upcoming free agent class as Oshie was looking to be one of the most sought after players on the open market.

On Friday, shortly after the Blackhawks overhauled their roster, there was speculation they might make a run at him as a potential Artemi Panarin replacement. Obviously, they will have to now look elsewhere. With Oshie no longer available the biggest names that could be available would be Alexander Radulov (assuming he and the Montreal Canadiens can not come to terms) or Ilya Kovalchuk (if he makes a return to the NHL).

Barroway doing ‘what’s right’ for Coyotes

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CHICAGO — If it wasn’t clear that Andrew Barroway is running the show in Arizona, it sure is now.

Since Barroway bought out his minority partners earlier this month, the Coyotes have cut ties with captain Shane Doan, traded goalie Mike Smith, and parted ways with head coach Dave Tippett.

That is no coincidence. Doan, Smith, and Tippett were the old guard, and Barroway wants to chart a new path.

For the breakup with Tippett, Barroway cited “philosophical differences on how to build” the team.

“I mean, he’s 100 percent owner,” GM John Chayka said Friday before the NHL Entry Draft. “Usually those guys do have some influence. … I think he’s trying to do what’s right for the organization moving forward. He wants to help find us an arena and keep us (in Arizona) long term. He wants to help us build a team. He’s invested emotionally, financially, everything. I respect that about him.”

Read more: ‘It was the owner’s decision’

But the shakeup hasn’t been easy on Chayka, who now has to find a new head coach, in addition to everything else on his plate.

“I’m 24 hours past Dave Tippett, and he’s a tough guy to get over,” said Chayka. “I’m focused on picking the best player tonight, then going from there.”

The Coyotes have the 23rd overall pick tonight. That was the selection they got from Minnesota in the Martin Hanzal trade. Arizona’s pick, the seventh overall selection, went to the Rangers in today’s Derek Stepan trade.

Hectic times for the Desert Dogs.

Related: Coyotes acquire Niklas Hjalmarsson from Chicago