Escrow tops NHL players’ list of concerns ahead of CBA talks

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Jonathan Toews says he just wants his contract to be worth what it says on paper.

Right now, it’s not that simple.

Under terms of the collective bargaining agreement, NHL owners and players divide hockey-related revenue 50/50, and if player salaries exceed that split a certain percentage is withheld in escrow to make it even. The Chicago Blackhawks captain and fellow players have lost upward of 10% of their pay to escrow over the past seven seasons, which is why 25 of 31 NHL Players’ Association representatives surveyed by The Associated Press and Canadian Press named escrow as the biggest bargaining issue with September deadlines looming to terminate the current CBA effective the fall of 2020.

”A. escrow and B. escrow,” Toews said when asked the two biggest issues in labor talks.

Olympic participation, the definition of hockey-related revenue, post-career health care, concerns about youth squeezing out older players because of the salary cap and money were the other topics player reps pointed to as important to them.

Escrow, though, is a point of contention in locker rooms around the league. It is expected to be a significant topic in talks ahead of the owners’ Sept. 1 and players’ Sept. 15 deadline to opt out of this CBA and set the clock ticking toward another potential work stoppage.

”I think we, as players, are really educating ourselves on the economics of the game and how it works and why escrow is the way it is,” New Jersey Devils player rep Cory Schneider said. ”There are a lot of things that go into it, and we understand from the owners’ side how it works. But for us that’s definitely something that, it fluctuates quarter to quarter, year to year, so you never really know what it’s going to be and it’s hard to really understand what you’re earning or what your worth is when you’re getting a big chunk of it taken back.

”I don’t know if we’re going to eliminate it. Obviously we’ll figure that part out. But at least some way to mitigate it or control it better for us just to know what to expect.”

The CBA sets aside some part of a player’s salary in a bank account throughout the year. After the season, total revenue is calculated and if the league is not at its 50% share, it gets the escrow money to make up the difference.

NHLPA executive director Don Fehr said escrow has been discussed in talks with Deputy Commissioner Bill Daly and expects more to come. But there’s no quick fix to reduce or eliminate escrow without changing substantial things about the economics of the league.

”Obviously it’s an irritant to players and from time to time it can be a big one,” Fehr said. ”But the question is how you do it. I mean, you can fix escrow by cutting salaries. I don’t think players are interested in doing that. So it has to become something that you address in a manner which makes sense for the players and addresses their concerns.”

A handful of players voiced their concern that revenues aren’t growing enough to compensate for the natural growth of salaries – and the cap – over time. Because seven of 31 teams are based in Canada, the fluctuation of the Canadian dollar affects everything, and players would like to find a solution to the entire financial picture, including a look at what counts as hockey-related revenue.

”There’s definitely a concern and always an emphasis on the revenues and us growing the game,” Toronto Maple Leafs player rep John Tavares said. ”That’s a top priority because I think when we see growth, we’re obviously going to see it on the business side. When you feel the hit of escrow on top of whatever taxes we have to pay, it’s definitely something that guys notice and something you don’t enjoy seeing. It’s important to us, but in saying that the bigger picture is the growth of the game. When that happens, when we do those things right, that’ll lead to more revenues that will hopefully lead to some adjustments.”

Commissioner Gary Bettman calls escrow ”a function of the cap” and said it’s going to be higher when that upper limit on salaries is higher.

”There are things you can do, either immediately or over time (where) you can manage the cap differently, which would manage the escrow, and those are things that obviously we need to be talking about,” Bettman said.

It’s not the only thing. Many players have expressed their desire to guarantee Olympic participation, though it seems impossible to collectively bargain because the International Ice Hockey Federation and International Olympic Committee are also involved. Countless business and political factors will go into whether the NHL sends its players to the Beijing Games in 2022.

One issue mentioned by players that can be bargained is how players are taken care of after they retire. Vancouver Canucks player rep Bo Horvat said medical coverage, treatment for concussion issues and other things matter.

He’s not alone in prioritizing that with talks ongoing and some optimism of maintaining labor peace because the issues are at least more straightforward than the last round of talks in 2012-13.

”Post-career stuff, health care stuff, lots of little things like that that are important to players as far as livelihood going forward,” Minnesota Wild player rep Devan Dubnyk said. ”The good news is there’s not anything major, but certainly some things we’re going to want to be talked about.”

Follow AP Hockey Writer Stephen Whyno on Twitter at https://twitter.com/SWhyno

More AP NHL: https://apnews.com/NHL and https://twitter.com/AP-Sports

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