Craig Leipold, Ryan Suter

Not every money-losing owner is a Leipold

24 Comments

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.

Kings place Zatkoff on waivers

LOS ANGELES, CA - OCTOBER 14:  Jeff Zatkoff #37 of the Los Angeles Kings looks on after allowing a goal during the second  period of a game against Philadelphia Flyers  at Staples Center on October 14, 2016 in Los Angeles, California.  (Photo by Sean M. Haffey/Getty Images)
Getty
Leave a comment

The Los Angeles Kings have placed goalie Jeff Zatkoff on waivers.

With Jonathan Quick not expected back until next month, it’s possible that the Kings intend to recall Jack Campbell from the AHL. (They had reportedly been considering it.)

Zatkoff has had a tough time in his first season with the club. The 29-year-old is 2-7-1 with an .879 save percentage. He hasn’t made a start since Jan. 23, leaving all the work to 34-year-old Peter Budaj.

Campbell has a .913 save percentage in 38 games for AHL Ontario this season.

The Kings host the Bruins tomorrow.

Treliving won’t say if Wideman’s been asked to waive NMC

CALGARY, AB - NOVEMBER 7: Dennis Wideman #6 of the Calgary Flames skates against the Pittsburgh Penguins during an NHL game at Scotiabank Saddledome on November 7, 2015 in Calgary, Alberta, Canada. (Photo by Derek Leung/Getty Images)
Getty
Leave a comment

The writing is pretty much on the wall for Dennis Wideman.

The Flames haven’t been happy with their defensive group outside the top three of Mark Giordano, T.J. Brodie and Dougie Hamilton. To that end, they signed Matt Bartkowski from AHL Providence and acquired former Arizona blueliner Michael Stone via trade.

Those moves have trickled down to Wideman, who’s in the last of a five-year deal with a $5.25 million cap hit.

After getting over 20 minutes in last Monday’s ugly 5-0 loss to Arizona, the 33-year-old received two of his lowest ice times of the season — 12:32 against Philly, 13:35 against Vancouver — before sitting as a healthy scratch in last night’s win over the Preds.

Could Wideman be moving on? More, from the Herald:

I asked Treliving if he had approached Wideman to waive his no-movement clause and he said he didn’t want to get into any of that.

Suffice it to say, Wideman and his $5.25 million cap hit have been shopped for years, with hopes that if anyone was willing to take him on, the player would see the move as a better option to staying put.

No takers.

It’s easy to forget that, in ’14-15, Wideman posted career-highs in goals (15) and points (56) while playing a boatload of minutes (24:39 per night). He also had seven points in 11 playoff games.

But the last two years have been extremely difficult. Injuries and the now-infamous hit on linesman Don Henderson — one that resulted in a 20-game suspension — have clearly taken their toll, and Wideman clearly isn’t a favorite of head coach Glen Gulutzan.

There may be a glimmer of hope for a trade, though.

Wideman’s bloated cap hit can be mitigated between the small number of games left in the regular season, and the possibility of Calgary retaining salary. That said, Wideman would be seen by most as an insurance policy for the playoffs — which is exactly why the Flames might keep him around.

This is a club with postseason aspirations, one that could use a serviceable d-man on the depth chart.

Vegas won’t be active at the trade deadline after all

LAS VEGAS, NV - JULY 13:  George McPhee (L) listens as majority owner of the Las Vegas NHL franchise Bill Foley speaks after announcing McPhee as the team's general manager during a news conference at T-Mobile Arena on July 13, 2016 in Las Vegas, Nevada.  (Photo by Ethan Miller/Getty Images)
Getty
1 Comment

The Vegas Golden Knights will not be active at the trade deadline after all.

It was thought a few weeks back that they might be, but owner Bill Foley said in a radio interview yesterday that the final payment would not be made in time.

“We won’t make it before the trade deadline,” Foley told KXNT, per The Sin Bin. “The documentation is unbelievable. I have documentation with the league on a franchise agreement. I have documentation on a loan we are taking out with CitiBank. I’ve got my personal stuff, which all has to get in and get approved. If you saw the stack of documents you’d say it’s not a pretty picture.”

Foley added that it was other teams that wanted to make deals more than it was his team.

“They want to lock up some of their players for the playoff run and after the playoff run,” he said.

What’s he talking about there?

Well, if the Golden Knights were active at the deadline, teams could’ve sent them draft picks or prospects to not select certain players in the expansion draft.

But that’ll have to wait now.

‘There’s a lot of flaws’ — Smith sounds off on concussion protocol

GLENDALE, AZ - OCTOBER 07:  Goaltender Mike Smith #41 of the Arizona Coyotes during the preseason NHL game against San Jose Sharks at Gila River Arena on October 7, 2016 in Glendale, Arizona. The Coyotes defeated the Sharks 3-1  (Photo by Christian Petersen/Getty Images)
Getty
3 Comments

Earlier this month, we wrote about Columbus head coach John Tortorella taking issue with the NHL’s concussion protocol.

Now, another vocal critic — Arizona goalie Mike Smith.

In the third period of Monday’s game against Anaheim, Smith was run into by Ducks forward Jakob Silfverberg. The collision knocked Smith’s mask off, and a spotter watching the game in Toronto asked that he veteran goalie be removed for concussion testing.

That happened at the 4:29 mark of the third. By the time Smith had been checked out, tested and cleared, there were only 90 seconds remaining — meaning Smith’s night was essentially over. (Marek Langenhamer secured the win in relief).

Arizona’s longtime No. 1 was displeased with the way things played out.

“I think there’s a lot of flaws in the system, especially with the goalie position, and it needs to get fixed,” he said, per the Arizona Republic. “What stops a fourth liner from going and bumping into a goalie? It’s just a two-minute penalty to get your starting goalie out?

“I don’t think it’s happened in a playoff game yet, but I’m sure it will.”

The 35-year-old added that his initial reaction to getting hit — grabbing his face and head — was only an instinct to protect himself, not an indication he suffered a head injury.

Smith also said that, for a goalie, sitting out for as long as he did makes it extremely difficult to jump back into action.

“I’m cleared, but now I’m coming back and now I’m more at risk of injury than before,” he explained.

Smith had yet another issue with the concussion protocol as it pertains to goalies. What if, he asked, the starter gets knocked out and requires testing, then the backup has the exact same thing happen? As unlikely as the scenario sounds, the possibility is out there.

As such, it wouldn’t be a surprise if the league looks to reassess the policy this offseason. In an email to the Republic, deputy commissioner Bill Daly said concussion protocol “is something that has been debated and discussed over a number of years and in great detail.”

One has to think those discussions will continue.