Coyotes fans

Booming NHL business a double-edged sword for low-revenue teams

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Yesterday, the NHL announced a 12-year Canadian broadcast agreement with Rogers worth almost $5 billion in U.S. dollars.

Yeah, it was a pretty big deal.

Immediately after the news broke, people started to wonder what it would mean for the league’s 30 franchises. And in particular, they wondered about the clubs that aren’t considered among the financial powerhouses of the NHL, for which finances are always a concern.

For example, Yahoo! Sports columnist Nicholas Cotsonika was thinking about the Phoenix Coyotes, a team that very nearly relocated this past summer before finally finding new ownership.

Say you’re the Coyotes. You have been at or near the bottom of the league in attendance in recent years. You want to win, draw fans and make the business work on your own. But the cap and floor are more manageable. You don’t have to hit attendance targets to receive revenue-sharing anymore. Your cut of the Canadian TV revenue now is $4.75 million a year at the current exchange rate, but it will shoot up to an average of about $13.8 million a year over the next dozen years – a $9.05 million difference per year. Now factor in revenue from the American TV deal, the outdoor games, a World Cup, other international events, et cetera.

And now consider this: If the NHL does expand – to, say, Quebec City and Seattle – the owners will split hundreds of millions of dollars in fees between them, and they won’t have to share any of that money with the players.

That’s the positive spin. But here’s the potential negative side, from the CBC’s Elliotte Friedman:

The only thing to worry about here is the salary floor, if you love a low-revenue club. Article 50.5 b (i) of the CBA states “the magnitude of the Team Payroll Range shall never be less than $16 million … or greater than $28 million.”

The promise of this new agreement allowed Bettman to stabilize his three biggest trouble spots: Florida, New Jersey and Phoenix. No doubt the owners of those teams, like Leonsis in Washington, are thrilled by the television bonanza and updated revenue-sharing formula.

The true test of the new CBA will be how many teams can’t afford to go much higher than the floor because you know the revenue powerhouses can’t wait to flex their financial-steroid muscles.

That’s the only concern I see. It’s at $44 million this season, and a $60-million base – with the upper limit approximately $20 million higher – is not out of the question in the near future.

The Globe and Mail’s James Mirtle conservatively estimates the salary floor/cap will rise as follows throughout the course of the CBA:

source:

It’s impossible to say for sure how current low-revenue teams like the Coyotes, Panthers, Predators, and Blue Jackets will fare in the next few years. Yes, there will be more national TV money coming in, and yes, there’s more revenue sharing under the new CBA. But paid attendance will still matter greatly for individual clubs, meaning much will continue to depend on their win-loss records.

Islanders agree to terms with Dennis Seidenberg

BOSTON, MA - JUNE 08:  Dennis Seidenberg #44 of the Boston Bruins skates against Mason Raymond #21 of the Vancouver Canucks during Game Four of the 2011 NHL Stanley Cup Final at TD Garden on June 8, 2011 in Boston, Massachusetts.  (Photo by Harry How/Getty Images)
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Word surfaced on Wednesday morning that the New York Islanders were expected to sign veteran defenseman Dennis Seidenberg.

On Wednesday night, the team announced that it has officially agreed to terms with him on a one-year contract. Financial terms of the deal were not disclosed, but according to TSN’s Darren Dreger earlier in the day the value is reported to be $1 million.

Seidenberg is currently playing a significant role for Team Europe, a surprise finalist against the heavily favored Canadians.

The 35-year-old defenseman was unexpectedly bought out by the Boston Bruins over the summer. He had two years remaining on his contract, with a cap hit of $4 million.

Seidenberg was a key part of the Bruins’ Stanley Cup champion team in 2011, but injuries limited him to just 61 games last season, and his average ice time fell below 20 minutes for the first time since he was with the Hurricanes in 2007-08.

He’ll likely take on a bottom-pairing role with the Islanders, below Nick Leddy, Travis Hamonic, Johnny Boychuk, and Calvin de Haan. He may even be the extra defenseman, pushing the likes of Thomas Hickey, Ryan Pulock, Adam Pelech, and Scott Mayfield for a spot in the lineup.

Related: Seidenberg shocked by Bruins’ decision

Rieder’s agent thinks trade from Coyotes is best for both parties

GLENDALE, AZ - OCTOBER 02:  Tobias Rieder #8 of the Arizona Coyotes in action during the NHL preseason game against the San Jose Sharks at Gila River Arena on October 2, 2015 in Glendale, Arizona.  (Photo by Christian Petersen/Getty Images)
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It seems that Winnipeg Jets defenseman Jacob Trouba isn’t the only unsigned restricted free agent that might be looking for a fresh start somewhere else.

Arizona Coyotes forward Tobias Rieder also seems to be ready to explore other options.

It’s already been known that Rieder is frustrated in his current negotiations with the Coyotes and will not attend training camp once he is finished playing for Team Europe at the World Cup.

On Wednesday afternoon, his agent, Darren Ferris, told Arizonasports.com’s Craig Morgan via email that he thinks it would be best for both parties if the Coyotes simply trade his client at this point, and that Rieder is “really disappointed” with the team.

More from Arizonasports.com:

“It’s unfortunate that a good kid gets treated this way. He never balked at the defensive role they made him play, and they don’t seem to value the intangibles he brings to the team.”

The Coyotes do not seem to have any interest in actually dealing Rieder at this point.

There’s a lot of rhetoric here, and that really should not be a shock considering the circumstances, but when looking at the numbers that are being talked about this doesn’t seem like a situation that should be beyond repair. A middle ground isn’t that far off.

According to Rieder’s agent, he is seeking a two-year deal worth $2.5 million per year. The team is reportedly holding strong with either an offer at $2.2 million per year, or a lower one-year qualifying offer. Again, that’s not a huge gap in terms of asking price. In actual salary it’s a total of $600,000 over two years, while the cap hit is only an extra $300,000 each year. For a young player that is already fairly productive and still has some upside to get better.

The middle ground in those two numbers would be a cap hit of $2.35 million per season.

The 23-year-old Rieder has played two full seasons in the NHL with the Coyotes and is coming off of a 14-goal, 37-point performance.

Originally a fourth-round draft pick by the Edmonton Oilers, the Coyotes acquired Rieder in a 2013 trade for Kale Kessy. Seeing as that Kessy has yet to play a single game in the NHL and only recorded 12 points in 56 AHL games a season ago it’s been a pretty good deal for the Coyotes.

Now they just need to find a way to make sure they can continue to benefit from it by trying to bridge this (relatively speaking) small gap in contract talks.

NHL odds: Coyotes biggest long shot to make playoffs in 2016-17

GLENDALE, AZ - SEPTEMBER 26:  (L-R) Christian Dvorak #18, Luke Schenn #2, Radim Vrbata #17, Dakota Mermis #43 and Max Domi #16 of the Arizona Coyotes celebrate after Schenn scored a first period goal against the Los Angeles Kings during the preseason NHL game at Gila River Arena on September 26, 2016 in Glendale, Arizona.  (Photo by Christian Petersen/Getty Images)
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With Max Domi, Anthony Duclair, Oliver Ekman-Larsson and Dylan Strome all in place, the Arizona Coyotes have an exciting core of young talent that should have a bright future in the NHL.

From a big picture outlook, there are plenty of reasons for optimism surrounding the Coyotes.

Vegas, on the other hand, isn’t a big believer in the Coyotes chances for the 2016-17 season.

The folks at Bovada released their playoff odds for the upcoming season and the Coyotes opened as the biggest long shot to make the playoffs (-600 to miss the playoffs; +400 to make them).

Here are the odds for every team, via Bovada.

Playoff Odds (From Most Likely to make the playoffs to least likely to make the playoffs)

Washington Capitals – To make the Playoffs?
Yes -1000 (1/10)
No +600 (6/1)

Tampa Bay Lightning – To make the Playoffs?
Yes -850 (17/2)
No +525 (21/4)

Chicago Blackhawks – To make the Playoffs?
Yes -800 (1/8)
No +500 (5/1)

Pittsburgh Penguins – To make the Playoffs?
Yes -800 (1/8)
No +500 (5/1)

St Louis Blues – To make the Playoffs?
Yes -800 (1/8)
No +500 (5/1)

San Jose Sharks – To make the Playoffs?
Yes -700 (1/7)
No +475 (10/4)

Los Angeles Kings – To make the Playoffs?
Yes -300 (1/3)
No +240 (12/5)

Dallas Stars – To make the Playoffs?
Yes -280 (4/15)
No +220 (11/5)

Florida Panthers – To make the Playoffs?
Yes -280 (4/15)
No +220 (11/5)

Nashville Predators – To make the Playoffs?
Yes -280 (4/15)
No +220 (11/5)

New York Rangers – To make the Playoffs?
Yes -280 (4/15)
No +220 (11/5)

New York Islanders – To make the Playoffs?
Yes -250 (2/5)
No +200 (2/1)

Anaheim Ducks – To make the Playoffs?
Yes -180 (5/9)
No +150 (3/2)

Boston Bruins – To make the Playoffs?
Yes -165 (20/33)
No +135 (27/20)

Montreal Canadiens – To make the Playoffs?
Yes -165 (20/33)
No +135 (27/20)

Philadelphia Flyers – To make the Playoffs?
Yes -150 (2/3)
No +120 (6/5)

Minnesota Wild – To make the Playoffs?
Yes -140 (7/5)
No +110 (11/10)

Winnipeg Jets – To make the Playoffs?
Yes -115 (20/23)
No -115 (20/23)

Calgary Flames – To make the Playoffs?
Yes +120 (6/5)
No -150 (2/3)

Edmonton Oilers – To make the Playoffs?
Yes +120 (6/5)
No -150 (3/2)

Detroit Red Wings – To make the Playoffs?
Yes +125 (5/4)
No -155 (20/31)

Colorado Avalanche – To make the Playoffs?
Yes +150 (3/2)
No -180 (5/9)

Vancouver Canucks – To make the Playoffs?
Yes +180 (9/5)
No -225 (4/9)

Buffalo Sabres – To make the Playoffs?
Yes +240 (12/5)
No -300 (1/3)

New Jersey Devils – To make the Playoffs?
Yes +250 (5/2)
No -325 (4/13)

Ottawa Senators – To make the Playoffs?
Yes +250 (5/2)
No -325 (4/13)

Toronto Maple Leafs – To make the Playoffs?
Yes +250 (5/2)
No -325 (4/13)

Columbus Blue Jackets – To make the Playoffs?
Yes +275 (11/4)
No -350 (2/7)

Carolina Hurricanes – To make the Playoffs?
Yes +300 (3/1)
No -400 (1/4)

Arizona Coyotes – To make the Playoffs?
Yes +400 (4/1)
No -600 (1/6)

If you’re feeling bold, the Coyotes aren’t the worst bet to make here. They are certainly not a lock to make the playoffs, but the biggest long shot seems like it is a little much as well.

Getting into one of the top three spots in the division is going to be tough because Anaheim, Los Angeles and San Jose had a pretty commanding lead for those spots. But the Coyotes still weren’t that far out of a playoff spot this past season, finishing in 10th place in the Western Conference, nine points out of the second wild card spot. It’s not like they were a bottom-feeder in the NHL. Plus, they made the move over the summer to bring in veteran defenseman Alex Goligoski to help on the blue line and should have Strome, the No. 3 overall pick from a year ago, ready to make his NHL debut.

Report: Ekblad cleared by Panthers doctors

NASHVILLE, TN - JANUARY 30:  Aaron Ekblad #5 of the Florida Panthers poses for a 2016 NHL All-Star portrait at Bridgestone Arena on January 30, 2016 in Nashville, Tennessee.  (Photo by Sanford Myers/Getty Images)
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Aaron Ekblad has been medically cleared by Florida Panthers doctors, according to TSN’s Darren Dreger.

That’s a big relief for everyone involved after Ekblad was injured while representing Team North America in the World Cup. The injury was originally reported as a “mild” concussion, though it was later called a neck injury.

The 20-year-old has since been back on the ice working out.

“Ekblad is going to be fine,” Panthers coach Gerard Galant said. “You see him out there skating already. I think it was a little scary, but he feels real good. He’s going to skate and see how he feels, but everything looks good.”

The first overall pick in the 2014 draft, Eklbad had already dealt with at least one concussion during his playing career. He suffered one in an international exhibition game during the summer of 2014, just prior to his outstanding rookie season with the Panthers.