Brooks Laich

Ask a Lawyer: If a player has a contract, how can the owners cut his salary?

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With all the rhetoric emanating from each side of the NHL’s labor dispute, we’ve decided to bring in an actual lawyer to answer a series of questions. Hopefully it will prove useful to you, the reader, because it’s costing us $500 an hour. Please welcome to ProHockeyTalk, sports legal analyst Eric Macramalla.

PHT: Hi Eric, thanks for doing this. Brooks Laich of the Washington Capitals has been particularly outspoken leading up to and during the lockout. Here’s what he had to say about the owners demanding an immediate reduction in players’ salary:

“Where I come from, you honor your handshakes and you have your word. If you don’t have that you have nothing. If I make a bad deal, sign a bad contract that’s my fault. And I accept that, I’m a man and I work through that. That’s something I deal with. I don’t go crying foul and looking for somebody to fix my mistakes. I accept that as a man, that I made a bad decision. I think that hockey players are pretty honest people and they don’t like it when it’s coming back the other way.”

Doesn’t Laich sort of have a point?

EM: It is understandable that Laich has expressed displeasure with the NHL seeking to reduce player salaries on existing contracts. After all, when a contract is signed, the expectation is that it will be honored and not altered at some later date. We all know that when million dollar contracts are not honored, lawsuits can be threatened.

The NHL, though, is not proposing a rollback (or altering existing contracts). Rather, the league wants to drop more of player salaries into escrow. If revenue projections end up being below the league’s actual revenue totals, the players would end up forfeiting a portion of their salaries. That’s the idea behind escrow – to make sure that the sides get the right share of revenue.

Practically speaking, if the players agree to a dramatic drop in their share of revenue, they could see a significant reduction in salaries. So from the players standpoint, it doesn’t matter what you call it since the net effect may be the same. Still, increased escrow payments and rollbacks are different.

Let’s also remember that this is not your typical employer/employee relationship. It’s different because players have agreed to tie salaries directly to revenue. If the players ultimately agree to take a lower percentage of revenue, they may see a reduction in their salaries. Indeed, this is a unique business model since an individual is directly affected by the collective.

One more point: some have said it’s unlawful for the league to rollback salaries since contracts have been signed. However, that’s not the case. The collective bargaining agreement, which represents the agreement between the parties, rules the day. If the NHL and Union agree on a lower share of revenue for the players, that would be included in the CBA – thereby making it law.

Eric Macramalla is a partner at a national law firm and TSN’s sports legal analyst. He has covered the legal side of all major sports stories, including the NFL and NBA lockouts, the Saints Bountygate, Barry Bonds and Roger Clemens perjury trials, the Ilya Kovalchuk dispute and the Jerry Sandusky case. You can follow him on Twitter at@EricOnSportsLaw and his sports law blog is located at www.OffsideSportsLaw.com.

Flames say there’s still ‘no real update’ on contract talks with RFA forwards Monahan, Gaudreau

CALGARY, AB - JANUARY 7: Johnny Gaudreau #13 (L) of the Calgary Flames confers with his teammate Sean Monahan #23 during a break in play against the Detroit Red Wings during an NHL game at Scotiabank Saddledome on January 7, 2015 in Calgary, Alberta, Canada. (Photo by Derek Leung/Getty Images)
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NHL training camps open in September and although most teams have done the bulk of their off-season tweaking, there’s still at least one team that has some serious work to do.

The Calgary Flames are still working on signing forwards Johnny Gaudreau and Sean Monahan to contract extensions. Both players are currently restricted free agents.

“No real update there,” said general manager Brad Treliving, per the Calgary Herald.  “We’ll continue to work away at it.”

The Flames have just under $15 million in cap space remaining, according to General Fanager. There’s a good chance both RFA forwards will take a deep bite into those remaining dollars.

Monahan already said he’d be willing to take less money to get a deal done, but that doesn’t mean he’ll come cheap. The 21-year-old scored 58 goals and 125 points in 162 games over the last two seasons.

As for Gaudreau, he’ll cost a pretty penny as well. The 22-year-old is coming off a season in which he scored 30 goals and 78 points in 79 games.

Here’s an excerpt from the Herald regarding these two players:

With 11 weeks until the regular season begins, here is what we know:

• Both players are restricted free agents and received qualifying offers from the Flames earlier this month. Talks are ongoing.

• Both are expected to receive whopping raises.

• Both are seeking long-term contracts, expressing that they’d like to play together for the foreseeable future.

• Both could be getting paid in the neighbourhood of between $6-million and $7.5-million for between six and eight years (if you use the com parables of Vladimir Tarasenko, Filip Forsberg, Seth Jones, Aleksander Barkov, and Nathan MacKinnon).

Thankfully for Calgary, they’ve done a decent job of managing their roster and the cap. Gaudreau and Monahan are the only two players on the roster that still need new contracts. The rest of the team is locked up for at least one more year.

Edmonton will have a captain by opening night, says McLellan

Todd McLellan
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After going without a captain last season, the Oilers will have someone wearing the “C” in 2016-17.

“Will we have a captain? Yeah, we will,” head coach Todd McLellan said on Wednesday, per the Oilers’ website. “We will have a captain.”

The last player to serve as captain in Edmonton was Andrew Ference, who inherited the position from Shawn Horcoff in ’13 and held it for two seasons.

Last year, the veteran blueliner appeared in just six games, and underwent season-ending hip surgery. He was in no position to serve in the club’s leadership group and, ergo, the Oilers opted to play without a captain.

So… who will be next to wear the “C?”

Most are thinking about Connor McDavid. Though he’s not publicly campaigning for the role, the 19-year-old did say it would “be one of the greatest honors. ” Though he missed significant time to injury last year, McDavid still enthralled Oilers fans with a rookie campaign that saw him rack up 48 points in 45 games, finishing as a Calder Trophy finalist.

Of course, there will be others in the mix.

Jordan Eberle, Ryan Nugent-Hopkins and Matt Hendricks have all served as alternates in Edmonton, and Hendricks captained the U.S. at this year’s world championships. There’s definitely some leadership to choose from, and it’s worth noting Eberle is one of the most vested veterans in Edmonton, having appeared in 425 games over the last six seasons.

Oilers’ Yakimov going back to KHL — this time, on loan

LOS ANGELES, CA - OCTOBER 14:  Bogdan Yakimov #39 of the Edmonton Oilers looks on prior to the start of the game against the Los Angeles Kings at Staples Center on October 14, 2014 in Los Angeles, California.  (Photo by Jeff Gross/Getty Images)
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Bogdan Yakimov is on his way back to Russia.

On Wednesday, the Oilers announced they’ve loaned Yakimov to KHL club Nizhnekamsk Neftekhimik, the same team he joined after leaving AHL Bakersfield last season.

The 83rd overall pick in 2013, Yakimov has appeared in one game for the Oilers since getting drafted. He’s spent almost all of his time in North America in the AHL, and didn’t impress the club last year when he bolted the farm team to return to his native land.

“He made a career decision to return to Russia and I’m not sure how he played or how many games he played,” Oilers head coach Todd McLellan said at the time, per the Edmonton Sun (McLellan was then informed Yakimov was away for 11 games).

“Well, that’s 11 games he didn’t spend with us. During his time away, there were a number of players recalled. I would have preferred to see him in an Oilers uniform and he was real close. Now he has to reset his Oiler clock and get playing again.”

All told, Yakimov played in 36 games with the Condors last season, scoring five goals and 15 points.

At 6-foot-5 and 232 pounds, Yakimov has impressive size and is still only 21 years old, so he’s got some value. But it remains to be seen whether he wants to try and push for an NHL career, or opt to stay in the KHL.

 

Max is back: Lapierre to attend Rangers camp on PTO

PITTSBURGH, PA - APRIL 01: Maxim Lapierre #40 talks with Craig Adams #27 of the Pittsburgh Penguins before a face-off during the game against the Philadelphia Flyers at Consol Energy Center on April 1, 2015 in Pittsburgh, Pennsylvania. (Photo by Justin K. Aller/Getty Images)
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After a year abroad, Maxim Lapierre is getting a shot to rejoin the NHL.

Per TVA, Lapierre has agreed to join the Rangers in training camp on a professional tryout. The news comes after he split last season between Swiss League outfit Lugano and Swedish League side Modo, with midseason rumblings there were NHL teams interested in bringing him back.

In New York, Lapierre will be reunited with Alain Vigneault, his former head coach in Vancouver. Vigneault has brought in a few former Canucks during his time with the Rangers, including Tanner Glass, Nicklas Jensen and Michael Grabner.

Lapierre, 31, last played in the NHL during the ’14-15 campaign, splitting time between Pittsburgh and St. Louis. A known agitator, he finished the year with 11 points in 80 games, and appeared in all five games of the Pens’ opening-round playoff loss to the Rangers.

Prior to his time in Pittsburgh and St. Louis, “Yappy Lappy” played in Montreal, Anaheim and Vancouver. His best season came in 2008-09, when he scored a career-high 15 goals and 28 points, earning a handful of Selke votes.