Leafs’ Cap Woes Not Yet Fatal

Much has been made by the Toronto media in recent  months regarding the team’s future cap situation. Currently, they sit at $3.929 MM over the cap ceiling. That issue is relatively unimportant considering the players that will end up on long-term injured reserve, but the sudden pressure of being “in the red” has started to make analysts nervous about the team’s future. The man source of concern surrounds the three star youngsters, Auston Matthews, Mitch Marner, and William Nylander, who will all need contracts before 2019-20. The 21 year-old Nylander’s RFA year is 2018-19 so his contract will be the first domino to fall.

Recently, Howard Berger penned an article proposing the necessity of moving on from one of Marner or Nylander due to impending budget restraints, and he ultimately advocated for the movement of the latter. The Toronto Star’s Damien Cox takes a more comprehensive look at the situation, but ultimately comes down with a fatalistic view of the situation – that it can only be rectified by abandoning one of these players in their primes. The author postulates that an approximate “37 percent of Toronto’s payroll” could be sacrificed to just that trio, estimating that the cap will rise only moderately (likely true).

There’s a very solid possibility that Toronto is overvaluing their own players’ worth a tad. There is also the incredible probability that one of the three may have a setback year, at least points-wise, which will bring a contract back down into reasonable territory. Matthews may not even make $10 MM on his first deal, and Marner and Nylander look to be only slightly more valuable collectively contract wise than say, Tyler Johnson and Ondrej Palat. Will the contracts be expensive? Absolutely. But will the three earn $30 MM combined? Not likely.

Ultimately, Toronto has difficult decisions ahead. Cox was correct in his assessment that Toronto is “going for it” now – the Patrick Marleau and depth player signings confirm that the team wants to compete in the short-term. But the long-term prospects probably don’t include sacrificing any of these players. With a combined cap devotion of slightly above 30%, the situation is entirely manageable.  The go-to example for star-power, of course, should be the Pittsburgh Penguins who have successfully shuffled accessory pieces out as they begin to become overpaid. Their big three – Sidney Crosby, Evgeni Malkin, and Kris Letang account for $25.45 MM of the team’s salary, a solid 34.8% of the allowable cap last season. Toronto fans shouldn’t start hitting the panic button, and internally the course ahead financially is likely already plotted. The team will need to find players on cheap contracts and hunt for bargains, while moving out older expensive pieces as the core group matures. Adding Marleau for a third season also wasn’t particularly helpful as 2019-20 will be the tightest fit. That said, Marner and Nylander shouldn’t start packing their bags just yet.