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Paying for intangibles usually backfires

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In an ideal world the thought of a “bad contract” in sports wouldn’t really exist (in my world, anyway). Professional sports are a multi-billion dollar a year industry and a player’s value should be what the market (in this case, a bunch of billionaire owners — or even one billionaire owner) feels that player should be worth.

The players are the ones putting in the work, making the effort, and drawing fans to the stadium or arena. They absolutely deserve a significant cut of the pie, and if they aren’t getting it, an even richer person ends up keeping it for themselves. So, pay the players.

That said, the world is not always perfect. Especially in sports.

When you are dealing with a sport that has a salary cap (and in the case of the NHL, a hard salary cap) you have to look at contracts a little more critically than just saying, “well, that is what they are worth that and that is the end of it.” A hard salary cap makes the business side of sports even more cutthroat and emotionless than it already is. Teams only have a set amount of money to spend, and paying the wrong player the wrong salary for the wrong reason can make it difficult to keep better players or build a winning team.

That brings us to one of the more eye-opening contracts signed this offseason when the Washington Capitals signed restricted free agent Tom Wilson to a six-year, $31 million contract extension over the weekend.

[Related: Tom Wilson cashes in with $31 million extension]

Reactions to that signing have been … mixed.

On one hand, that is a ton of money to invest in a player that has scored more than seven goals and 23 points in a single season once in five years, a fact that has made it a highly scrutinized deal from an analytical perspective.

On the other hand, there is this the intangible side of the argument that has come out of Washington, where the things Wilson does well don’t always show up on a stat sheet and that he was a part of a Stanley Cup winning team this past season.

Or that he might inflict a lot of pain on you…

Honestly, I would not want to go into the corner against any player in the NHL, but that fact alone does not mean it is smart to pay every player more than $5 million per season over the next six years in a hard-capped league, especially when my team already has several big-money players on the roster.

This is part of the “intangible” argument that gets thrown around in contracts like this. We have seen it and heard it a hundred times.

There used to be literal shouting matches over players like Dave Bolland when he played in Toronto, and then collective confusion (and even more yelling) when he signed for $27 million over five years in Florida. Eventually, his contract became one of the many to buried in Arizona when it did not work out.

When Edmonton spent big money on players like Milan Lucic and Kris Russell in recent years the defense of those contracts wasn’t about the offense they could provide or the tangible production they would give the Oilers, but more about intangible things like protecting Connor McDavid or being gritty and tough to play against. Just a couple of years into those contracts they already look like bad investments for an Oilers team that is pressed against the cap ceiling without any consistent success on the ice to show for it.

The thing about players like Bolland and Lucic is that at one point in their careers they were players that did provide tangible results. Their contracts backfiring had more to do with paying too much for players at the wrong point in their careers and for the wrong reasons.

All of this brings us back to Wilson’s contract. I get the argument that he is still reasonably young, and that maybe the Capitals are finally figuring out how to use him by giving him a real role with good players instead of burying him on the fourth line and sending him out to rattle cages for 10 minutes a night. As I wrote on Friday when Wilson signed his contract, maybe his game continues to evolve and he produces more. Fact is, though, there really isn’t a player in the NHL right now that has signed a contract like this with the sort of production he has put on paper.

That makes it a contract worth evaluating a little more critically, especially when much of the argument for it is based on things we can not easily see.

Taking a deeper dive into this, I went back over the past 10 years and looked at forwards that signed larger, big-money contracts that did not necessarily match their level of production. Specifically, I looked at players that had played at least 300 games in the NHL and averaged less than 0.45 points per game (less than a 35-point pace over 82 games) at the time of their contract signing.

It is a group that includes Wilson’s new deal.

Here are the biggest contracts in that group (at least four years in length, worth at least $3.5 million per season), ranked by largest salary cap hit.

Look at that list, and then ask yourself this question: How many of them would you say have worked out favorably for the team that signed them?

  • Clarkson, Bickell, and Beleskey have already traded or dumped by the teams that originally signed them.
  • Sutter and Abdelkader have no-trade clauses as part of their deals. Given Detroit’s salary cap situation Abdelkader’s deal looks especially problematic. He is 31 years old, still has five years remaining, and over the past two years has scored a grand total of 20 goals in 140 games.
  • Shaw and Clutterbuck have no such clauses in their deals, and would it really be a surprise to see one (or both) be traded before their deals expire? Especially Clutterbuck as the Islanders have assembled a collection of fourth-line players just like him (on equally bizarre long-term contracts).
  • Upshall is the only player on that list that, as of now, played out the entire contract with the team that signed him.

Aside from the group shown above, there were another 22 players with similar stat lines that signed contracts of at least four years in length (Paul Gaustad shows up twice on this list because he actually signed two such contracts, one in Buffalo and one in Nashville).

How did that group turn out?

  • Two of those contracts (the Jay Beagle/Antoine Roussel duo in Vancouver) are starting this season.
  • Four players (Zack Smith, Casey Cizikas, Derek Dorsett, and Dale Weise) are still with the team that signed them … for now.
  • Five players played out the entire contract with the team that signed them.
  • Ten players either had their contracts bought out or traded before the end of them. In many cases within the first two years of signing the contract.

The point here isn’t to downplay defensive play, or penalty killing, or any number of intangible things that go into a player or a team, because there is value to them. But the thing that stands out about a lot of these players that were given contracts based largely on those things we can’t see is that in many cases those teams quickly realized they maybe weren’t worth the big dollar numbers and either traded them or moved them out, either to dump salary or give that salary to players that, quite simply, produced more.

Perhaps the simplest way to put all of this: Pay big money for what you can see. Not what you can not.

Adam Gretz is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @AGretz.

Trade: Flames get Lucic; Oilers receive Neal

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Call it a “change of scenery,” or probably most directly, trading problems. Either way, Alberta rivals the Calgary Flames and Edmonton Oilers made a truly resounding trade on Friday, with the main takeaway being that Milan Lucic goes to the Flames, while James Neal is bound for Edmonton.

Yeah, wow.

Multiple reporters indicate that it’s close to one-for-one, although there are a few minor tweaks to consider.

The Calgary Herald’s Kristen Anderson reports that the Oilers are retaining 12.5 percent of Milan Lucic’s salary, which translates to $750K, while Edmonton is also sending Calgary a conditional third-round pick in 2020. It’s not clear yet what those conditions are.

If Anderson and others are correct, that means the trade boils down to:

Flames receive: Lucic, 31, minus $750K per year. That puts Lucic at $5.25M, with his contract running through 2022-23. Calgary also receives Edmonton’s 2020 third-round pick, if conditions are met.

Oilers receive: Neal, 31, who has a $5.75M cap hit that runs through 2022-23.

As you can see, the two players remain very similar in both cap hit, term, and even age. The Flames save $500K in cap space, while the Oilers add $500K, as Puck Pedia confirms.

Of course, when you’re talking about contracts teams largely want to get away from, it’s often about more than just cap hits. There are some significant ins and outs to that side of the discussion, including Lucic’s deal being essentially “buyout proof.” Neal, meanwhile, would be easier for the Oilers to buy out, if they decide to do that after an audition with the team.

On Saturday, PHT will try to wade through the variety of paths the two teams could take, whether it means sticking with Lucic and Neal respectively, or going for a buyout or trade. For now, let’s consider where they are in their careers.

Lucic’s tough times

After a productive first season in Edmonton where Lucic scored 23 goals and 50 points in 2016-17, Lucic plummeted down the depth chart and in production. This past season was rock bottom, as Lucic scored just six goals and 20 points in 79 games.

The bet on Lucic, some might say in part leading to the dreadful Taylor Hall trade, stands as one of the landmark gaffes of Peter Chiarelli’s Era of Error in Edmonton. It was clear that both the player and team needed to part ways, so now there’s at least peace in that regard.

A bumpy path for Neal, and brutal times in Calgary

Whether you like Neal – a player who absolutely goes over the line at times, when he loses his cool – or not, it’s tough not to feel for him after the last several years.

He was traded from the Stars to the Penguins in 2011, scapegoated a bit out of Pittsburgh on his way to Nashville in 2014, then scooped up by Vegas in the 2017 expansion draft, only to sign with the Flames (possibly in a relatively lukewarm free agent market) last summer. Now this trade sends Neal to Edmonton, making this the 31-year-old’s sixth NHL team, and his fourth in his past four seasons. Players as productive as Neal – aside from last season’s meltdown – rarely become journeymen like this.

Honestly, should we just get his nameplate ready for the Seattle [Unfortunately Not Supersonics] right now?

Despite that upheaval, Neal had been a guy who could score goals nonetheless. He peaked with 40 during his best days with Malkin in Pittsburgh (an 81-point output in 2011-12), but he sniped in multiple climates, generating 20+ goals in 10 consecutive seasons.

And then this Calgary season happened.

Neal never clicked with Johnny Gaudreau and Sean Monahan, as Elias Lindholm instead took that plum gig. Neal slipped lower and lower in the lineup, sometimes becoming a healthy scratch, and ended 2018-19 with Lucic-like numbers (though in fewer games), as Neal managed only seven goals and 19 points. He was also an all-around disaster, as you can see from RAPM charts via Evolving Hockey that argue that, in some ways, Lucic was actually better last season, as Lucic at least wasn’t as much of a defensive disaster as Neal. Faint praise, but still:

Better times ahead, maybe?

Again, it’s easy to forget that both wingers are 31.

That’s not a great age to be when your contract looks inflated, but there’s also a chance that maybe both could turn things around, at least to some degree. With Neal closer to more productive seasons than Lucic, he’d seem to be a more likely candidate, especially if his rifle of a shot pairs nicely with Connor McDavid‘s all-world playmaking.

But both players have a shot at positive regression. Neal’s five percent shooting percentage from 2018-19 marked the only time in his career that he’s been below 10.4 percent, while Lucic shot at 6.8 in 2017-18 and 8.1 in 2018-19, compared to his career average of 13.5 percent.

Modest rebounds wouldn’t guarantee that either Neal or Lucic sticks around in their new climates. Improvements might just make each forward easier to trade, and more palatable to keep around while looking for trades. There’s simply a lot of room for “to be continued” elements to this move, from buyouts to trades and more.

***

As discussed above, there could still be twists and turns in these sagas, and some of those possibilities will be examined on Saturday. Yet, at this moment in time, this seems like the rare trade win for the Oilers. Maybe this is the start of a positive pattern now that Ken Holland is GM?

James O’Brien is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @cyclelikesedins.

Trouba gets seven-year, $56 million deal from Rangers

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The New York Rangers have locked up Jacob Trouba with a seven-year, $56 million contract.

Trouba saw his restricted free agent rights acquired by the Rangers last month from the Winnipeg Jets in exchange for defenseman Neal Pionk and 2019 first-round pick (Ville Heinola). General manager Jeff Gorton added up front by bringing Artemi Panarin to Broadway on July 1, so you knew that they were going to eventually come to an agreement to keep the 25-year-old defenseman in the fold following the June trade as they bulk up for a run in 2019-20.

“They’re building a winner tends to be the vibe I’ve gotten,” said Trouba following the trade to New York. “They treat the players first class. It’s very first-class organization. I mean, it’s New York so you’ve got a big stage and they expect a lot out of their team. We want to ultimately get to the Stanley Cup.”

 

Earlier this month Trouba had elected salary arbitration and had a July 25 date scheduled. But that was merely a formality to allow extra time for both sides to hammer out a deal.

According to PuckPedia, $22 million will be paid to Trouba over the next three seasons via signing bonuses and he has a no-move clause from 2020-21 to 2023-24 and a limited no-trade clause in the final two years of the deal.

[ProHockeyTalk’s 2019 NHL free agency tracker]

The ninth overall pick in the 2012 NHL Draft, Trouba has spent the last six seasons with the Jets, playing 408 games and recording 42 goals and 179 points. In 2018-19 he set a career high with 50 points, making him the ninth defenseman 25 or younger to hit that mark in the past three seasons.

Gorton still has work to do this summer in deciding whether to re-sign RFAs Pavel Buchnevich (July 29 arbitration hearing), Brendan Lemieux and Tony DeAngelo, while working around the salary cap, which after this signing puts them over the ceiling. This could end up leading to a trade of Chris Kreider, who’s entering the final year of this deal carrying a $4.625 million cap hit but owed $4 million in salary for the coming season. They also have a 48-hour buyout window later this summer as well even if they settle with Buchnevich before his hearing.

MORE: Jets were never going to get enough for Trouba

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Sean Leahy is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @Sean_Leahy.

Key defensemen enter contract years, possible free agency

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Despite being the most exciting offseason since PHT started in 2010, the NHL will probably always lag behind the NBA when it comes to stars moving in free agency.

Rudely, players like Sidney Crosby and Connor McDavid don’t even flirt with drama, instead sticking with their teams by signing extensions, often almost at the first possible moment they legally can. Again, rude.

So, it’s important to get that disclaimer out of the way. Chances are, the fascinatingly robust list of pending free agent defensemen will narrow down, possibly starting before the 2019-20 season begins.

But, even so, it’s quite the list, and a lot of these defensemen will earn enormous, team-changing raises, whenever their next deals get signed.

And, hey, sticking with your team can still alter its course. Just look at how scary that Drew Doughty extension ($11 million AAV through 2026-27) seems today compared to when Doughty re-upped with the Kings in July 2018.

Let’s consider some of the most intriguing names, split by UFA and RFA designations. Cap Friendly’s listings were helpful in putting this together, and being that these lists aren’t comprehensive, you may enjoy digging deeper there to find even more.

Prominent UFAs

Alex Pietrangelo (Blues), Roman Josi (Predators), Tyson Barrie (Maple Leafs), Torey Krug (Bruins), Jared Spurgeon (Wild, more on them here), Justin Faulk (Hurricanes), Jake Muzzin (Maple Leafs), Justin Schultz (Penguins), Christopher Tanev (Canucks), T.J. Brodie (Flames), Sami Vatanen (Devils), Travis Hamonic (Flames).

The headliners of this list – particularly Pietrangelo and Josi – must have licked their chops when Erik Karlsson signed that mammoth eight year, $92M ($11.5M AAV) contract with the Sharks. Pietrangelo and Josi don’t boast multiple Norris Trophies, yet they might also be healthier than Karlsson when he signed his deal, so there could be interesting value debates.

Either way, Roman Josi’s borderline-insulting $4M won’t cut it after 2019-20.

The marquee names are the most intriguing, yet there are interesting situations as you go down a rung and more. And those are the players who are arguably more likely to sign with new teams.

[ProHockeyTalk’s 2019 NHL free agency tracker]

Would Toronto be able to bring back even one of Barrie or Muzzin after next season? Are the Hurricanes destined to move on from Faulk, or would they instead keep Faulk and move someone else, like Dougie Hamilton? Players like Faulk, Schultz, and Vatanen could see their value shift in big ways depending upon how well or poorly they perform in 2019-20. Will P.K. Subban‘s arrival hurt Vatanen, or will the former Ducks defenseman thrive in a more relaxed role next season for New Jersey?

There are a lot of intriguing situations to watch there.

Notable RFAs

Josh Morrissey (Jets), Thomas Chabot (Senators), Samuel Girard (Avalanche), Mikhail Sergachev (Lightning), Ryan Pulock (Islanders), Darnell Nurse (Oilers), Brandon Montour (Sabres), etc.

These players don’t have the same leverage as they’re restricted, but it should still be interesting if there’s a ripple effect when the Jets have to pay Morrissey, and how strenuous negotiations could be between Chabot and the penny-pinching Senators. Tampa Bay’s really brought Sergachev along slowly, and you wonder if they’d be wise to try to extend him before a potential breakthrough?

***

Again, extensions will kill some of the wildest daydreams by crossing names off the list long before July 2020. Don’t assume your team will happen upon a Pietrangelo or Spurgeon.

That said, there are certain “something has to give” situations. The Maple Leafs may know that they’re only getting Muzzin and Barrie for a limited time. The Bruins have a tight squeeze happening, especially with Charlie McAvoy still needing an RFA deal this summer.

Either way, teams should savor deals like Josi at $4M, because they won’t last much longer.

James O’Brien is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @cyclelikesedins.

Maple Leafs’ Marner mum on contract negotiations

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It’s not much, but for Toronto Maple Leafs fans willing to hang on anything said by still-unsigned restricted free agent Mitch Marner, it was at least something.

When Marner stepped in front of a crowd of reporters on Thursday, he did undoubtedly knowing what the first line of questioning would be. And the second, and the third.

When is he going to sign?

“Hopefully sooner than later,” Marner said. “I want to be there for the start of camp, so hoping something can get done then.”

From there, Marner steered those questions toward his agent as he threw on his best pair dancing shoes and showed he could sidestep with the best of them.

If you’re looking for a t-shirt slogan, “You have to ask my agent” is right up there with the best of them in Toronto these days.

 

“My agent and Kyle are doing it, and they’re going to figure something out,” Marner said.

One thing Marner made pretty clear is he wouldn’t be at training camp without a contract.

“Probably not,” he said. “There’s so much risk with that. It’s just something you don’t want to risk.”

What about an offer sheet?

[ProHockeyTalk’s 2019 NHL free agency tracker]

Marner whipped out the agent line once again, while saying he’s trying to stay out of all of that “stuff.”

So the uncertainty hasn’t affected you?

“None,” he said, before once again talking about his agent’s role in the negotiations.

What about fans’ concerns that you may not sign a contract with the Maple Leafs.

“I’m leaving all of that to my agent right now,” he said.

Those agents, man. Ruining Toronto’s summer for the second year in a row.

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Marner seemed unfazed by it all and appears to be enjoying his summer.

Why wouldn’t he? He’s about to get paid in a major way, but the Maple Leafs or any number of teams that would be willing to lavish cash upon him if given the chance.

Marner’s situation is one of several playing out this summer. He’s not the only big-ticket RFA without a deal so far.

Patrik Laine in Winnipeg, Brayden Point in Tampa Bay, Mikko Rantanen in Colorado are just a few others. It’s become commonplace for big names without arbitration rights on the RFA list to let negotiations span the summer, if not further.

Marner’s contract is only illuminated better because of where he plays. Dominating two national TV broadcasters on a daily basis in Canada.

And the fear in Leafs Nations is made only worse knowing all-too-well where this path can lead.

William Nylander‘s contract last summer dragged right into the regular season and Nylander and the Maple Leafs felt those effects throughout the season.

The same scenario with Marner would be worse, given he’s the team’s leading point-getter from last season.

A Toronto native, Marner said he’s well-accustomed to the media and said his phone has been shut off for much of the summer.

Like he said, his agent is running the show. Marner’s merely the main protagonist who has yet to be revealed in a complex script.

When he will is anyone’s guess.


Scott Billeck is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @scottbilleck