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Hockey Canada Issues Updates On 2018 Investigation

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Earlier today, after the London Police Service held a press conference regarding the investigation into several players of the 2018 U20 Team Canada roster, Hockey Canada released several updates of their own. The major takeaway from the report is that all members of the 2018 U20 Team Canada roster remain suspended from Hockey Canada-sanctioned events, pending an appeal process started in 2023.

For this specifically, Hockey Canada is investigating whether or not any team members breached the organization’s code of conduct and what sanctions should be imposed on the individual players. With respect to the investigation and the legal process, Hockey Canada was unable to comment further and did not give a clear timeline as to when the appeals process may reach its conclusion.

Depending on the timeline, this will bar all players from the 2018 U20 Team Canada roster from playing in any international events, except the “4 Nations Face-Off” in 2025, as it is an NHL-sanctioned event. Without getting into the specifics, the President and Chief Executive Officer of Hockey Canada, Katherine Henderson was quoted as saying:

“Hockey Canada recognizes that in the past we have been too slow to act and that in order to deliver the meaningful change that Canadians expect of us, we must work diligently and urgently to ensure that we are putting in place the necessary measures to regain their trust, and provide all participants with a safe, welcoming and inclusive environment on and off the ice”.

Outside of Hockey Canada, TSN’s Darren Dreger reports that the Calgary Flames, New Jersey Devils, and Philadelphia Flyers will receive cap relief for players currently on leave who have been charged in the 2018 Team Canada legal proceedings. Without specifying how much cap relief the teams would receive, it is reasonable to assume that the full dollar amount of each player’s contract will now be taken off the books for the foreseeable future, meaning $2.3MM, $2.2MM, and $3.98MM, respectively.

Snapshots: Schneider, Bally Sports, Stienburg

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Frank Seravalli of the Daily Faceoff is reporting that the National Hockey League Players’ Association (NHLPA) and Mathieu Schneider are parting ways after 12 years. Since his retirement after the 2009-10 NHL season, Schneider originally started as a Special Assistant in the NHLPA and had been working as the direct Special Assistant to the now-former head of the NHLPA, Don Fehr.

Seravalli also pointed out that the dismissal had been pushed by the new Executive Director of the NHLPA, Marty Walsh. Some of the most significant projects in the league that Schneider had been directly involved in, were changes to the ’head-shot’ and boarding rules across the NHL, working directly with the league’s Senior Vice President at the time, Brendan Shanahan.

Even after his dismissal, it shouldn’t be difficult for Schneider to find employment elsewhere, either with an individual team, or the league itself. A veteran of 21 years in the NHL spanning from 1987-2010, Schneider spent time with Montreal Canadiens, Detroit Red Wings, Toronto Maple Leafs, Los Angeles Kings, New York Islanders, and New York Rangers, as well as four other teams for short spells.

Other snapshots:

  • In an ongoing legal battle with Diamond Sports Group, the parent company to Bally Sports, the NHL is reportedly seeking emergency relief funds if negotiations are not settled quickly. Currently, 12 organizations have their media rights held by Bally Sports, and with a Texas judge extending DSG’s reorganization deadline to September 30th, the NHL is seeking a contract break well before that date. On March 14, 2023, DSG filed for Chapter 11 bankruptcy, holding responsibility for a reported $9B in debt, with the inability to pay.
  • Seeing his exclusive draft rights expire only 48 hours ago, Peter Baugh of The Athletic is reporting that center Matt Stienburg and the Colorado Avalanche organization are still in contact about a possible contract. Stienburg was the team’s 63rd overall pick from the 2019 NHL Draft and had spent the last four seasons playing for the Cornell University of the NCAA, earning a four-game tryout with the Colorado Eagles at the conclusion of last year’s AHL season.

Calgary Flames’ Arena Construction Deal Terminated

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The Coronavirus pandemic has claimed another victim. The long-awaited construction of a new arena for the Calgary Flames will no longer begin this year. Instead, the deal is dead. CBC reports that the agreement between the city of Calgary and owners of the Flames on a new arena has officially been terminated. A project that began gaining steam back in 2017, was finalized in 2019, was set to begin construction in 2022, and set to open in 2024 is now completely erased and the Flames are back to square one.

The $600MM project has hit some funding roadblocks along the way as both the city and ownership group have suffered losses during the pandemic. This past summer, with inevitable construction delays on the way, the initial agreement was amended, groundbreaking was pushed to 2022, and the Flames took on an additional $12.5MM in costs. Yet, it seemed like the plan was still on track. However, Calgary mayor Jyodi Gondek stated last month that the team had informed the city that they could not proceed with the agreement as currently constituted. Today, the city announced that the termination of the agreement had been made official due to “unresolved issues”.

Meanwhile, it is estimated that the two sides already contributed $20-25MM into the project, which is now all for not. The city is set to discuss the situation further in the near future, while there has been no word from the Flames side. Today’s announcement did imply that there was no possibility of reformation of any part of the deal, but with financial commitments already made and a concrete plan hammered out, hopefully some semblance of an alternative path forward can be reached.

Otherwise, where the Flames go from here will become a pressing issue in Calgary. The team will continue to play at the Saddledome in the interim, but the old arena is severely outdated and in need of renovations – or replacement, as the team had hoped. Back in 2017, Flames CEO Ken King even publicly threatened relocation of the franchise if the city of Calgary would not help to fund the arena. It then took several years of often heated negotiations for the two sides to reach an agreement. If they have to start from scratch now, the future of the team in Calgary could be cast back into doubt.

Snapshots: Kane, Glass, Lee

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While the trade bait board released by Daily Faceoff’s Frank Seravalli earlier this week contained mostly the usual suspects, a surprise at No. 5 was San Jose Sharks top scorer Evander Kane. While a departure was a possibility this season – the Sharks did tell a U.S. bankruptcy court that Kane’s contract could be terminated – this is the first that trade rumors have popped up. It does not seem as though Kane’s ongoing financial issues and legal proceedings are the root cause either. Instead, Seravalli suggests that a number of Kane’s teammates are unhappy with him in the locker room and have voiced their frustration to San Jose management. This would not be the first time that Kane’s personality has pushed him out of town; he previously had issues in both prior career stops with the Thrashers/Jets and Sabres. Whether the Sharks follow suit and trade Kane is another matter. A top scorer and physical presence, Kane is one of the best players on the team. Even if GM Doug Wilson was inclined to trade Kane, his bankruptcy case and the new leaked details of another upset locker room would make it very difficult for him to get fair value back for what Kane actually contributes on the ice. It’s a difficult situation and one that was not expected to be an issue for the Sharks this summer. It is one thing for Kane’s legal status to force their hand and another to have to instead make the proactive choice to trade an elite player.

  • Another player who may unexpectedly be available this summer is young Vegas Golden Knights forward Cody Glass. As relayed by The Athletic’s Jesse Granger, Vegas head coach Peter DeBoer made some comments in his closing media availability on Saturday that were not-so-subtly directed at Glass. A young guy can’t say he never got an opportunity,” DeBoer said. “I think we stuck young guys in all year and tried to put them in situations where they had an opportunity to succeed… Some have seized the moment, some haven’t. Some just aren’t ready yet.” As the Knight’s most high-profile prospect, Glass is certainly one of if not the biggest target of these remarks. Vegas’ first ever draft pick at No. 6 overall back in 2017, Glass has been given ample opportunity so far in his career. He skated in 39 games with the Golden Knights as a first-year pro in 2019-20, recording 12 points, and was expected to take a step forward this year. Instead, he played in only 27 games and recorded 10 points, failing to make an impact at even strength. His lack of reliability kept him out of all but one of Vegas’ playoff games this spring. A prospect with Glass’ draft pedigree is expected to be doing more at this point in his career, especially as the team’s other 2017 first-rounder, Nick Suzuki, is currently first or second in goals, assists, points, and time on ice this postseason among Montreal Canadiens forwards – the team that just knocked out the Knights. With just one year left of waiver exemption, Glass must show this season that he can be an everyday NHL contributor. If DeBoer and the club have doubts, they may decide to trade him now before his stock slips any further.
  • Some good news in exit interviews came from the New York Islanders. Captain Anders Lee, whose season was ended by an ACL injury in March, sounded optimistic about his recovery. “I am on track,” Lee stated. “I was able to do a lot of really good things in the past 13-14 weeks since surgery. Looking forward to continuing on that path and getting ready for camp.” ACL injuries can be a difficult and timely recovery, so Lee’s early progress is encouraging. If he is indeed back to full strength in time for training camp, that is an ideal result for the Islanders. Before his injury, Lee was scoring at a pace that closely resembled his career highs in per-game goals and points and was well on his way to a career-best plus/minus, even in the shortened season. New York needs him at that level next year, as their lack of salary cap space will likely prevent them from making any meaningful improvements to the roster this summer.

Tampa Bay’s LTIR Usage Investigated By NHL, No Wrongdoing Found

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As could have reasonably been expected, the Tampa Bay Lightning have faced some criticism of their handling of the salary cap this season, especially as they race toward what could very likely be back-to-back Stanley Cup Championships. The Lightning employed the Long-Term Injured Reserve to keep forward Nikita Kucherov off the pay roll for the entire 2020-21 regular season, allowing them to re-sign other players and add at the trade deadline by using the entirety of his $9.5MM cap hit as added space. Then, when the postseason began and the salary cap was no longer a factor, the 2018-19 Hart Trophy winner was ready to return, looking fresh and looking no worse for wear. At best, the timing of it all was extremely lucky. At worst, it was salary cap circumvention.

Defending his team against these allegations, Tampa GM Julien BriseBois tells Sportsnet’s Josh Beneteau that the NHL did in fact investigate the club’s LTIR usage and found that they had not broken any rules.  The league had issued a warning earlier this season, with an unusually high number of teams using the LTIR, that they would be monitoring those transactions and would investigate. This was the case with Kucherov, but nothing about the Bolts’ actual transactions raised any alarms. After all, the LTIR, for all intents and purposes, is a legal form of circumvention. If other clubs are upset with how it is being used, it is an area that will need to be addressed in the next CBA negotiation in 2026.

However, the vast majority of complaints were not how the LTIR itself is structured or was used by Tampa, but rather the suspicious timing of Kucherov’s rehab lasting through the entire regular season but not into any of the postseason. BriseBois noted that this too had to be proven to the league. “We had to be able to justify the surgery, the rehab time, (and) the return to play clearance,” he told Beneteau. “Sometimes the stars align for you,” he added, qualifying what others believed to be a designed manipulation of the LTIR system. If the NHL was convinced that the timing was just right, then other teams and fans alike should be as well. BriseBois is right though – the team certainly got lucky and that luck might just lead them to another title.

NHL Not Opposed To Third-Party Salary Retention In Trades

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Perhaps the story of the NHL Trade Deadline, since it certainly wasn’t the quantity of trades or the numerous star players on the move, was the advent of the third-party salary cap broker in trades. Three different deals were made at the deadline that included three teams, with the third team strictly being used as a means to retain salary on the centerpiece player moving to a contender short on cap space. In each one, the third team retained the maximum 50% of salary after the seller had also retained 50%, leaving the buyer with just 25% of the player’s cap value. For their part, the third team received a draft pick from the buyer and were able to shed a minor league salary as well.

The Tampa Bay Lightning first used the Detroit Red Wings to broker the trade of defenseman David Savard from the Columbus Blue Jackets. Tampa had been expected to be quiet at the deadline given their miniscule cap space, but ended up getting one of the best defensemen on the rental market. Next, the Toronto Maple Leafs employed the San Jose Sharks as the middle-man for their acquisition of Nick Foligno, again from the Blue Jackets. Toronto had little cap flexibility and a long shopping list at the deadline and would not have been able to add Foligno without help. Finally, San Jose volunteered to be the third team again the deal that sent Mattias Janmark from the Chicago Blackhawks to the Vegas Golden Knights. Vegas has had the worst cap situation of any team in the league this season, restricted from making standard roster moves and several times forced into short-handed lineups. Yet, using this new three-team retention format they were able to add a top rental.

This all poses a question that at least a few other NHL clubs have been asking: should this be legal? The NHL has cracked down on salary cap circumvention in the past and there appear to be some who believe this is simply the newest version, allowing cap-strapped contenders to acquire players that they never could otherwise. However, according to TSN’s Pierre LeBrun on the latest edition of “Insider Trading“, this is one perceived problem that the league will not tackle. LeBrun reports that the league has been well are of this method of trade and were not fooled by the deals made at the deadline this year. After all, it was more than three years ago now when the Pittsburgh Penguins seemingly invented this formula – albeit in a more complete hockey trade – in the Derick Brassard deadline deal with Vegas and the Ottawa Senators. The Golden Knights then used the format to their advantage just last year, adding Robin Lehner from the Blackhawks via a cap-retention pitstop in Toronto. Clearly, there is a group of teams who have taken to this specific style of three-team trade, with Vegas and Toronto chief among them, and there are others who are not happy about it. As such, the NHL has already done its due diligence on the legality and will not take action.

Their reasoning? There simply is no cap circumvention occurring here. LeBrun relays that the league has no issue with a third team being used solely for cap retention, as hockey capital is being acquired by all parties. The Red Wings and Sharks received mid-round draft picks in exchange for their assistance and were even allowed to help balance the checkbook by sending out another contract. The NHL feels that this is a valid use of cap space as an asset to make a legitimate trade. So while it does create situations in which the rich get richer without otherwise having the cap space to do so, all parties are being reasonably compensated within the NHL rulebook. Teams may not like it, but that doesn’t make it illegal. And with the flat cap environment likely to continue for another year or two, this style of trade isn’t going away any time soon.

Jacob MacDonald To Have Hearing With Department Of Player Safety

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The Department of Player Safety has some more work to do. The league has announced that Colorado Avalanche defenseman Jacob MacDonald will have a hearing today for an illegal check to the head of Minnesota Wild forward Ryan Hartman.

The incident occurred late in the first period last night when the Avalanche were already down 2-0. As Hartman stopped and waited to deliver a pass in the Avalanche zone, MacDonald made a direct line for him with no real concern for the puck. Just as the puck left Hartman’s stick, MacDonald delivered a hard check from his blind side.

MacDonald was not assessed a penalty on the play, but appears to be facing a suspension today. The 28-year-old defenseman is finally receiving an opportunity at the NHL level after grinding his way up from the ECHL. In 27 games this season he has seven points.

Tim Peel No Longer Officiating NHL Games

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In last night’s game between the Nashville Predators and Detroit Red Wings, referee Tim Peel was caught on a hot mic suggesting that he had made a make-up call, despite there being little evidence of a penalty. After the clip spread, the league investigated and has now announced Peel will no longer be working NHL games “now or in the future.”

Executive vice president of hockey operations Colin Campbell released a statement:

Nothing is more important than ensuring the integrity of our game. Tim Peel’s conduct is in direct contradiction to the adherence to that cornerstone principle that we demand of our officials and that our fans, players, coaches and all those associated with our game expect and deserve. There is no justification for his comments, no matter the context or his intention, and the National Hockey League will take any and all steps necessary to protect the integrity our game.

Peel was expected to retire at the end of the season. This is not the first time he has been embroiled in controversy. Six years ago, when working at Yahoo Sports, Greg Wyshynski (now of ESPN) released a piece in which Peel suggested that the NHL instructs their officials to “manage the game a certain way,” including on calls that would not usually be a penalty. Obviously, that controversy died out at some point, but this new one was too much even for the veteran referee to withstand.

The NHL so rarely comments on officiating at all that his removal—the release carefully does not indicate he has been fired or released—still comes as a bit of a surprise, despite the evidence.

Evander Kane, Sharks Inform Bankruptcy Court Of Potential Contract Termination

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When San Jose Sharks forward Evander Kane filed for bankruptcy in January, just before the start of the season, there was some concern that he would not be available to play in 2020-21. While that has not been the case, a new question has arisen in relation to Kane’s bankruptcy case and his playing future: is this his final season with San Jose?

The Athletic’s Daniel Kaplan and Kevin Kurz write today that Kane, along with the Sharks, filed a motion in United States federal bankruptcy court requesting an extension on the court’s determination as to how Kane’s contract is governed by bankruptcy law and whether it should be assumed as part of reorganization. Their reasoning: as the parties to the contract, they each acknowledge a possibility of rejection of the deal, making the determination a moot point. The court has accepted this motion, delaying the case until June 7. For a San Jose team that is highly unlikely to make the 2021 playoffs, this date falls after the season is over, at which time the two sides could decide to terminate the remaining four years and $29MM of the $49MM pact that Kane signed in 2018.

Why exactly does either side wish to terminate the deal? After all, Kane is the Sharks’ second-best scorer so far this season and a perennial 30-goal, 50-point player who is well worth his value. Kaplan and Kurz posit that for both sides this is simply about saving money in the short-term. While that may seem counter-intuitive for Kane to give up so much guaranteed money, not only is the contract filed as his sole source of employment in his bankruptcy filing, but it was also used to secure many of the loans that he has defaulted on. Removal of the money promised in his contract would fundamentally change the way that his bankruptcy ruling would be organized, denying creditors of their immediate source of repayment. Essentially, the contract is all that Kane has and by removing it before his bankruptcy determination, the result would be very different. As for the Sharks, the team is happy with the play of Kane but as they endure another difficult season and consider a rebuild, $29MM in future salary could be put to better use in a time of financial hardship.

Of course, Kane’s creditors also want a say in the matter. One in particular, Zions Bancorp, has filed a motion requesting that Kane’s bankruptcy case be treated as a business under Chapter 11 rather than as an individual under Chapter 7. They claim that Kane’s losses, mostly attributed to gambling, should be considered business-related. If this change is made, with a hearing occurring later this month, than the $29MM remaining on Kane’s contract would be open to creditors and a lien would be placed on those future earnings. In this case, there would be even more motivation for Kane to terminate the deal. If the contract remains shielded from creditor access, then it is more likely to be honored by Kane and Sharks, especially in the event of a positive decision from the judge on how it should be treated.

The NHL and NHLPA are certainly watching this case closely as well, but as Kaplan and Kurz note there is not much that they can do when it comes to competing with federal law. If the Sharks and Kane decide to terminate the contract in the eyes of the bankruptcy court, that would supersede any collectively bargained rules and processes. However, if this does occur, the league and players’ association could certainly step in to prevent Kane from signing  a new deal with San Jose – or with any other team – after his bankruptcy decision has been finalized. Kane is no stranger to off-ice issues and the league may not want to further enable him and set a precedent that their rules can be warped when players get into personal trouble.

There is still much to be decided in this case, but this is now the second time that Kane’s bankruptcy case has come up as a possible hindrance to his participation in the NHL and it likely won’t be the last. With the Sharks now involved, this situation has been elevated from an individual issue to one that could impact the team, the league, and players’ rights. The case bears watching in the coming months.

Bankruptcy Filing Warns Evander Kane May Opt Out Of 2020-21 Season

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Tuesday: Obviously without commenting on any of his player’s personal financial issues, San Jose Sharks head coach Bob Boughner tells Dalton Johnson of NBC Sports “I don’t think we’re worried” about Kane’s availability this season, nor his ongoing bankruptcy case becoming a distraction. Boughner stated that Kane “seems ready to go” and that “I am assured that he will be here for the whole season.” Of course, the status quo could still change given the ongoing proceedings, but as of right now there does not appear be any risk of missed time. This would lend itself to the idea that Kane’s inclusion of his contractual rights in his bankruptcy filing was a required or otherwise strategic move and less of an actual threat.

Monday: In the middle of a wild and seemingly unrelated story pertaining to San Jose Sharks forward Evander Kane, a small note in a legal document could have a major impact on the Sharks’ season. As detailed by The Athletic’s Daniel Kaplan, Kane filed for Chapter 7 bankruptcy in federal court in San Jose on Monday, citing $26.8MM in dept. In detailing his income, a current seven-year, $49MM contact signed with San Jose in 2018, Kane issues this warning:

Debtor may terminate his contract and he may opt out of the season, as allowed under current rules, because of health concerns given the recent birth of his first child. Should he terminate his contract or opt out at a point in the season, Debtor will not receive his salary.

Now, Kane is not going to terminate his contract with the Sharks. The deadline to opt out of the season, which begins in just two days, was this past Saturday, January 9. However, if Kane’s decision to opt out is motivated by health concerns related to his family, there is already precedent that he will be allowed to do so. Boston Bruins goaltender Tuukka Rask opted out of the 2020 postseason after it had already began due to concerns over his own daughter’s health. Kane would not need to terminate his deal to get out of playing this season and that’s unlikely the outcome the Sharks would pursure anyway.

That of course does little to comfort Sharks fans. After a season in which San Jose struggled greatly despite a strong roster on paper, there was hope for a rebound this year. They now face the possibility that the player who was arguably their very best in 2019-20 could miss the new campaign. Kane led the Sharks with 26 goals and was second in total scoring with 47 points, all while missing six games due to injury. He was also the only effective trigger man on the power play, notching 14 power play goals of San Jose’s 33 total. Replacing that offense would be next to impossible for the Sharks. The physical Kane was also expected to pick up some of the slack in the checking game left behind by the departures of Brenden Dillon and Barclay Goodrow. 

Kane clearly has more on his mind than the Sharks’ hopes for the season, what with a newborn daughter as well as a a bankruptcy case that cites gambling debts, civil lawsuits, and claims from upwards of 47 creditors. However, missing the season certainly won’t help the latter and in the long run won’t help the former. All involved are definitely hoping that the resolution to this whole situation involves Kane suiting up for the San Jose this season. His full participation in training camp as well as the unknown intricacies of what he was required to disclose in the bankruptcy filing lend hope that this will be the outcome, but the end result remains to be seen.

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