Colorado Avalanche v Minnesota Wild - Game Three

Report: Avs may file for arbitration against O’Reilly (Update: They have)


After playing things cool the past two seasons, relations between the Colorado Avalanche and forward Ryan O’Reilly may be about to get heated up again.

TSN’s Bob McKenzie reports the Avs may file for club-elected salary arbitration on O’Reilly, a restricted free agent. Two seasons ago, the two sides butted heads on a contract until the Calgary Flames signed O’Reilly to a two-year, $10 million offer sheet the Avs quickly matched.

This time around, things could get a bit hairy for Colorado if they go down this road with O’Reilly.

In order for Colorado to retain his rights to negotiate with him, they have to make a $6.5 million qualifying offer to him. The Avs could negotiate a long-term deal with him or they can take him to arbitration. As McKenzie noted, the latter choice isn’t made very often and if O’Reilly agrees to go to arbitration, he can pick a one or two-year award.

At worst for O’Reilly, the arbitrator could side with the Avs and award him an amount lower than $6.5 million. The worst that can be is 85-percent of that total ($5.525 million). Still a good haul but not what he could’ve gotten had the Avs just qualified him.

On the other hand, O’Reilly could win his case and the Avs could be on the hook for a cap hit exceeding $7 million for one or two years. It’d be tough for the Avs to make a case against a guy who had 28 goals and 64 points last season while playing a strong two-way game.

Things didn’t go well when the two tried to work out a deal two years ago and going through this sort of rigmarole again could lead to a holdout or a trade demand.

Update (6:12 p.m. ET): Right after posting this, the Avs have indeed filed for arbitration.

This doesn’t have to have a dire ending for either side. An arbitration hearing is the last straw, but they can get a deal worked out before a hearing even happens. Going this route just provides some closure in some way, although O’Reilly can still be signed to an offer sheet between July 1-5. That wasn’t the case under the old CBA.

Kings grab goalie insurance by signing Budaj

LOS ANGELES, CA - SEPTEMBER 22: Jhonas Enroth #1 and Peter Budaj #31 of the Los Angeles Kings stretch before a game against the Arizona Coyotes at STAPLES Center on September 22, 2015 in Los Angeles, California. (Photo by Andrew D. Bernstein/NHLI via Getty Images)
via Los Angeles Kings
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In slightly less interesting Los Angeles Kings news than the latest in the Mike Richards fiasco, the team handed Peter Budaj a one-year, two-way deal on Friday.

The veteran goalie’s contract pays $575K on the NHL level and $100K in the AHL (though it’s $150K guaranteed), according to Hockey’s Cap.

At the moment, it sounds like Budaj will be third on the Kings’ goalie depth chart. That says as much about how things have been going lately for Los Angeles than Budaj’s work on a PTO.

As noted above, one of the more significant moves in Budaj’s favor came when the New York Islanders claimed Jean-Francois Berube off of waivers this week.

The Kings actually waived Budaj before signing him, so this has to be a relief to a goalie with a fairly robust resume as a backup.

All apologies to Budaj, but it’s probably true that the Kings would prefer not to see him at the NHL level very often in 2015-16.

Kings, NHLPA announce settlement in Richards grievance

Los Angeles Kings v New York Rangers

The Los Angeles Kings announced today that they have “reached an agreement with Mike Richards to resolve the grievance filed in relation to the termination of his NHL Standard Players Contract. The terms are agreeable to all parties.”

The club said that it will not be commenting further “on the terms” of the settlement.

The NHLPA released a similar statement.

It was reported earlier in the week that a settlement was close to being reached; however, it wasn’t clear what salary-cap penalties the Kings would incur.

We’re starting to find out some details now:

How the final numbers differ from what the Kings would have incurred if they’d bought Richards out will be interesting to see. And if there are differences, how will they be justified?

Stay tuned.