Brad Richards, Christian Ehrhoff Prove Circumvention Still An Issue In NHL
After the NHL nixed a proposed deal between the New Jersey Devils and Ilya Kovalchuk last summer because the deal circumvented the salary cap, it was widely assumed that teams trying to circumvent the cap with long-term, front-loaded deals would be shut down, and that circumvention as a whole would come to an end.
Thanks to Brad Richards and Christian Ehrhoff, those cap philosophers have been proven wrong.
Christian Ehrhoff signed a ten-year deal with the Buffalo Sabres that will pay him $40 million over the duration, but $18 million (including $13 million in signing bonuses over those two years) in the first two years of the deal. His AAV of $4 million makes him an affordable pick up for a team that needed a strong puck-mover, but it also puts the team at a serious disadvantage if they need to improve their team via trade during the next two seasons.
As it turns out, the suddenly spend-happy Sabres are now the team with the NHL's highest payroll according to CapGeek.com. That, to be sure, can change over the next two months, but it's got to be a welcome sight for Sabres fans to see their team spending money.
At the other end of New York State, it's been reported that Brad Richards - the most highly prized free agent in an otherwise remarkably weak (yet overpaid) class - has agreed to a nine-year deal with the New York Rangers that will pay him $58.5 million over the duration, but will give him $50 million in the first five years.
If that's the case, the deal will allow New York an easy out after the fifth year, when Richards will be nearly 37. It's similar to Ehrhoff's deal - although he'll only be 38 at the end of the deal, the last four years of the contract pay him a combined $6 million, and only $1 million in each of the last three years.
Both contracts avoid the 35-and-over CBA clause, which states that whenever a player over 35 signs a multi-year deal, the AAV counts against the cap for the entire duration of the contract, even if the player retires before the contract is up.
(The Philadelphia Flyers nearly waded into that territory when they signed 39-year old Jaromir Jagr, but they were able to keep his $3.3 million deal to just one year.)
But that doesn't change the fact that the Ehrhoff and Richards deals, while team- and player-friendly, are in pretty blatant disrespect of the league and the CBA. It may not be a huge concern now, but with the CBA in need of renewal come Spring 2012, these contracts could prove to be a big point of contention among owners trying to agree on their end of the CBA talks.
18 comments
|
0 recs |
Do you like this story?
Comments
Honestly I’m just jealous we don’t have a guy with a ridiculous deal like that. Chara’s is the closest, paying him 9.5 million next season with a cap hit of 6.9m. Which I guess is pretty sweet, actually.
Your 2011 Stanley Cup Champion Boston Bruins
Hockey Blog Adventure: New Post: 2011 Stanley Cup Champion Boston Bruins: YES!!! (I'm also on Twitter.) GO BRUINS! (and Wild!)
by Cornelius Hardenbergh on Jul 2, 2011 1:26 PM EDT reply actions
I think a lot of these teams are spending money on contracts they are going to regret later. I am kind of glad the Bruins have mostly stayed out of it (even though i really, really badly want to see the team pick up a defenseman who can anchor the second pairing).
I suspect improvement at defense is on Chia’s list, but not at these prices. I figure he makes a move when the market settles or looks for a trade, or if there isn’t anything stands pat and hopes the youngsters can step it up.
I also find it interesting that Kaberle hasn’t gone one way or the other yet. Makes me think he and the Bruins may be closer to a deal than anyone realizes.
By allowing these types of front-end loaded contracts, the NHL would allow cash strapped teams to reach the cap floor by trading for players who are at the end of these contracts. I’m not sure why the league is against them. If you think about the role Recchi played for the bruins this past seaon, it’s not a stretch to think that a player like Richards may play that same role for a team like Nashville in 6-7 years. Reaching the cap floor is always going to be a challenge for non-traditional markets and these types of contracts will help.
You make a good point with this.
However, at the same time, why bother even having a cap/floor? These contracts allow rich teams to overspend and poor teams to underspend… its clear circumvention of the CBA, even if it may be beneficial to teams.
by BobbyOrrsBastard on Jul 2, 2011 4:31 PM EDT up reply actions
That’s the thing, these contracts loophole the CBA, so what’s the point of having those regulations? No reason to have rules if no one follows them. Not that I’m against these types of contracts, I don’t really care who signs for what outside of the Bruins, but it just seems silly to have the regulations in place, and then ignore them.
Personally, I think these long term contracts are silly. Players get hurt, have bad seasons, team systems and dynamics change. What in the NHL stays the same for more than a few years? Look at how different teams are just season to season. Who are you kidding signing a 9 year contract? Most players will play for 3 or 4 different teams of the course of 9 years.
I forget where I read this, and who it's attributed to, but...
We tend to cheer for uniforms, not teams, during the era of free-agency.
I can't seriously be asked to summarize my sports fandom in a short blurb for all to see, can I?
by Johnny Appleseed on Jul 2, 2011 8:34 PM EDT up reply actions
I think the Islanders are a pretty traditional market and they’re the most likely to get into cap floor circumvention.
Your 2011 Stanley Cup Champion Boston Bruins
Hockey Blog Adventure: New Post: 2011 Stanley Cup Champion Boston Bruins: YES!!! (I'm also on Twitter.) GO BRUINS! (and Wild!)
by Cornelius Hardenbergh on Jul 3, 2011 6:36 AM EDT up reply actions
Holy F, Caps just STOLE Vokoun from the Panthers. 1 year/$1.5M. Caps just got a whole lot better now that they have a true starter in net.
Holy crap, they just signed him for peanuts, huh??
Suck it, Felger!
by phonymahoney on Jul 3, 2011 10:59 AM EDT up reply actions
I would like it if the next CBA had a nice clause to limit the front loading. Something like each year’s salary has to be +/- X% of the cap hit? Here’s an example using Erhoff’s contract
So if the % difference limit is 30%, Erhoff could make between $5.2m and $2.8m per year for the 10 year $40m contract he signed. I think that would be a good fix. It would still allow front loading, but at a controlled level that would really just be useful to pay a player more in his prime.
by tkent on Jul 3, 2011 12:56 AM EDT reply actions 1 recs
I like that idea.
Also will be interesting to see if they implement a cap on contract length similar to what the NBA has/had. Though with your percentage limitation there wouldn’t be as much of a need.
by BobbyOrrsBastard on Jul 3, 2011 10:41 AM EDT up reply actions
I actually like the percentage limitation idea more than a restriction on contract length. That way teams and players can enter in long term deals if they choose, but they still have to work within the cap without finding ways to creatively circumvent it.
I don’t think they put any limits on players under a certain age, say 38! No player over the age of 38 can enter into a contract longer than two years! That way a team can sign a young stud like Stamkos for most of his career but it would prevent the contract length from getting into those questionable years when he may no longer be able to play!
Signing a guy for 15 years should be fine but if he’s going to be 43 at the end of the contract, that would be circumventing!
"2011 Stanley Cup Champion Boston Bruins!" - Music to my ears!
by SkateHitShoot on Jul 5, 2011 3:54 PM EDT up reply actions

by 























