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.

Predators’ Watson asking for $1.4 million in arbitration

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It could be a busy couple of days for the Nashville Predators with two arbitration hearings scheduled through Monday.

The first of those two was scheduled for Saturday with restricted free agent forward Viktor Arvidsson, while Austin Watson is scheduled to have his on Monday if no deal is struck before then. On Saturday Sportsnet’s Elliotte Friedman reported that Watson and the Predators have filed their numbers for that hearing with Watson looking to make $1.4 million, and the Predators countering with an offer of $700,000.

Watson made $575,000 this past season for the Predators when he scored five goals with 12 assists in 77 games while mostly playing in a bottom-six role.

The 25-year-old Watson was a first-round pick by the Predators in 2010 and has played his entire career to this point with the organization. In parts of three seasons with the big club he has scored just nine goals in 140 games.

He played what was perhaps his best hockey with the team during the 2016-17 playoffs when he scored four goals (nearly matching his career regular season high) and added five assists during the Predators’ run to the Stanley Cup Final. All four of those goals came in the Western Conference Finals against the Anaheim Ducks, including two in their series-clinching Game 6 win. He also recorded three assists in the Stanley Cup Final.

Given the relatively small gap here this seems like a classic “meet in the middle” situation when it comes to reaching a deal for this upcoming season.

Ducks prospect Jones seems ready to make the jump to the NHL

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The Anaheim Ducks had a chance to restock their prospect cupboard during the 2016 draft with a pair of first-round picks, selecting Max Jones with the No. 24 overall pick and Sam Steel with the No. 30 pick. Both prospects had strong seasons in 2016-17 with their junior teams — Steel recorded 131 points in 66 games with the Regina Pats of the Western Hockey League, while Jones was a point-per-game player for the OHL’s London Knights before getting his first taste of pro hockey with a nine-game look in the American Hockey League playoffs with the San Diego Gulls.

He now seems determined to make the Ducks’ roster this upcoming season.

Here is talking to Eric Stephens of the OC Register following the team’s prospect camp earlier this month.

“I don’t know if it’s about that,” Jones said at the Ducks’ prospect camp earlier this month. “I just think … I won a Memorial Cup. I think it’s time to move on and try to win a Stanley Cup. That’s kind of what my idea is.

“I want to step into the big leagues and I want to … for years and years I’ve been watching teams win that Stanley Cup and that’s all I want to do right now. Start playing and try to win a Stanley Cup.”

The problem Jones and the Ducks will face this season is that he is still not eligible to play in the American Hockey League during the regular season due to the CHL transfer agreement, which means the team has to decide whether or not to give him a look with the big club in Anaheim, or send him back to the Ontario Hockey League for a third consecutive season.

He also missed significant time this past season due to a broken arm and another suspension for crossing the line physically (this time it was 10 games for cross-checking), something he has struggled with during his junior hockey days.

Given his willingness to play the game with a physical edge and his size (6-3, 215 pounds) he certainly seems to fit the Ducks’ “heavy” style of play.

Still, the Ducks’ roster is already pretty deep and there aren’t many spots available, especially after the team just reached the Western Conference Finals this past season. For as big and talented as he is, he has still only played 112 games in the OHL over the past two seasons and hasn’t always dominated offensively. Some additional development time might not be the worst thing for him this season.

Penguins, Dumoulin seem pretty far apart with their arbitration numbers

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The Pittsburgh Penguins have two arbitration hearings scheduled with restricted free agents (Brian Dumoulin and Conor Sheary) over the next few weeks, and on Saturday we found out some of the numbers being thrown around for one of them.

Sportsnet’s Elliotte Friedman has the arbitration numbers for Dumoulin, with the defender asking for $4.35 million, while the team is offering $1.95 million.

Obviously, that is a pretty significant gap, and probably one of the larger ones you will see in these sorts of situations. But it is also important to keep in mind that at the end of the day this is still a negotiation and both sides know they’re probably not going to get what they are hoping for.

Dumoulin has to know he is not going to get $4.35 million, while the Penguins have to know they are probably going to have to pay more than $1.95 million to get him re-signed.

He is coming off of a contract that paid him $800,000 in each of the past two seasons.

The question is going to be how much each side has to give up.

What is going to work against Dumoulin is that he does not have the offensive numbers that are going to stand out and get him the sort of payday he asked for. His career high in points is 16 while he has scored just two goals in 163 regular season games during his career. He is a good defensive player and a solid top-four defenseman on a Stanley Cup winning team, but that lack of offensive production is going to hurt him in this sort of negotiation. Even if he were an unrestricted free agent on the open market he probably would not be able to get that sort of payday from a team. It seems impossible to think he would get that as an RFA in arbitration.

His arbitration hearing is scheduled for Monday, July 24.

Sheary is scheduled for his arbitration hearing on Aug. 4.

The Penguins are still $10.3 million under the salary cap (via CapFriendly). Dumoulin and Sheary figure to take up most of that, but they are also still in the market for a third-line center to replace Nick Bonino after he signed with the Nashville Predators in free agency.

Coyotes, Martinook avoid arbitration with two-year contract

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The Arizona Coyotes and restricted free agent forward Jordan Martinook were able to avoid their upcoming salary arbitration hearing by agreeing to terms on a two-year contract on Saturday.

Martinook’s new deal will pay him an average annual salary of $1.8 million per season according to Craig Morgan of 98.7 in Arizona and Sportsnet’s Elliotte Friedman.

“We are pleased to sign Jordan to a two-year contract,” general manager John Chayka said in a statement released by the team. “Jordan is a hard-working, versatile forward with good speed. He was an effective player for us last year and will play an important role for us this season.”
Martinook had an arbitration hearing scheduled for July 26 but this contract helps the two sides avoid that unpleasantness.

A second-round pick by the Coyotes in 2012, the 24-year-old forward has spent the past two full seasons playing for the Coyotes and is coming off of a 2016-17 season that saw him score a career-high 11 goals and 25 points. He mad $612,500 this past season, so the $1.8 million cap hit over the next two years represents a pretty significant raise for him. He bounced around the Coyotes’ lineup this past season, but he spent the majority of his time playing on a line alongside Tobias Rieder.