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Deferred Payments In Jeopardy In Upcoming CBA Discussions

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The NHL and NHLPA are expected to discuss removing the option for teams and players to structure contracts with deferred payments when they begin negotiating a new Collective Bargaining Agreement next month, Pierre LeBrun of TSN and The Athletic reported Tuesday.

Deferring part of a contract’s total value until after its expiry to earn a discount on a player’s cap hit has been legal since the 2004-05 lockout, which signaled the beginning of the salary cap era. However, it was used incredibly rarely until the past few months. Four players—the Hurricanes’ Jaccob Slavin and Seth Jarvis, the Maple Leafs’ Jake McCabe, and the Ducks’ Frank Vatrano—have accepted deferred compensation as part of new contracts or extensions since July 1.

Vatrano’s extension, a three-year, $18MM commitment that carries just a $4.57MM cap hit compared to $6MM without deferred compensation, has taken the most advantage of the rule. It’s the first of the four to defer base salary, not just signing bonus money, and he’ll only earn half of the money over the contract’s life. The other $9MM will be paid out in 10 yearly checks of $900K from 2035 onward. During that time, Vatrano anticipates retiring in Florida and will not pay California state income tax on the money.

However, as LeBrun relayed, most player agents aren’t suggesting this strategy for their clients. Octagon’s Allan Walsh put up a brief explainer of why it’s not always a tax-saving measure in the long run, although LeBrun countered with the supposition that Vatrano wouldn’t have earned as much total cash by not using deferred compensation.

The league determined that Vatrano’s deal was compliant with the deferred compensation rule as written, but “that shouldn’t be interpreted as the league being a big fan of it or deferred payments in general,” LeBrun said. He adds the NHLPA has historically opposed deferred payments – the value of money paid later is almost always lower than money earned in the present due to inflation – creating an environment for both parties to close the door on that contract structure when the next CBA goes into effect for the 2026-27 season.

Avalanche’s Valeri Nichushkin To Return On Friday

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The Colorado Avalanche are prepared to welcome winger Valeri Nichushkin back to the game lineup in their Friday matchup against the Washington Capitals, head coach Jared Bednar shared with media including Jesse Montano of Guerilla Sports. Nichushkin hasn’t played since being placed into Stage 3 of the NHL/NHLPA Player Assistance Program on May 14th, which included with a six-month suspension from team activity and pay. The Stage 3 placement also required Nichushkin to submit an application to be considered for reinstatement at the end of his suspension. He returned to Denver in early October and rejoined the team’s practices in early November. He’s eligible to return to the lineup on November 13th, though Colorado will seemingly choose to push that return back a couple of days.

Nichushkin entered the Player Assistance Program square in the middle of Colorado’s second-round series against the Dallas Stars in last season’s Stanley Cup Playoffs. He was playing at an all-time high at the time, with nine goals and 10 points through eight postseason games. Colorado would ultimately relinquish the series to Dallas with a two-overtime loss in Game 6.

Nichushkin has been a welcome gift on the ice. He’s carved out a considerable top-six role since joining Colorado via waivers in 2019, proving capable of both routine scoring and great off-puck habits. Those traits have helped Nichushkin routinely rival the 25-goal and 50-point marks in each of the last three seasons, even despite totaling 77 missed games in that span. He’s been even better in the postseason, scoring 15 points in 20 games during Colorado’s run to a 2022 Stanley Cup win, and was one of only five Avalanche to score above a point-per-game pace in last year’s postseason.

That production has made it all the more difficult for Colorado to deal with Nichushkin’s routine absences. He’s hit every hole in the road, being forced out by multiple upper-body injuries across 2021, 2022, and 2023; and was sat by the team for the final five games of their 2023 Stanley Cup playoffs for personal reasons. Nichushkin has become a contentious player, but head coach Bednar spoke positively about his return to the lineup, saying: “[His process back has] been great. I think the guys are excited to get him back, and Friday is the day. We’re only two games away.” Nichushkin had 13 points in the final 15 games of the 2023-24 regular season, and will look to quickly pick up from where he left off.

Jack Campbell Enters NHL/NHLPA Player Assistance Program

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The National Hockey League and its Players’ Association have announced Detroit Red Wings goaltender Jack Campbell has entered the Player Assistance Program and will be away from the team indefinitely. Campbell signed a one-year, $775K contract with the Red Wings on the opening day of free agency this past offseason.

It’s an unfortunate turnaround for Campbell as he had hoped to rebuild his value on a one-year contract in Detroit after a disappointing 2023-24 season with the Edmonton Oilers. Campbell signed as an unrestricted free agent with the Oilers after a 2021-22 season in which he earned a .914 save percentage in 49 games with the Toronto Maple Leafs. Campbell would only see two years of his five-year, $25MM contract in Edmonton.

The team bought him out at the end of the 2023-24 season after Campbell posted a 22-13-4 record in 39 starts from 2022-24 with a .886 SV% and 3.53 goals-against average. The Oilers sent Campbell down to their AHL affiliate, the Bakersfield Condors, after only five games last year and he proved much better in the minor leagues. He secured an 18-13-1 record with the Condors in 33 games with a .918 SV% and 2.63 GAA in his first AHL competition since 2018-19.

Campbell was always likely to find himself with the Red Wings’ AHL affiliate, the Grand Rapids Griffins, with the team having one of the most crowded creases in the league. Detroit was poised to enter the 2024-25 NHL season with Ville Husso, Alex Lyon, and prospect Sebastian Cossa already under contract and brought in Campbell and Cam Talbot over the offseason. Campbell will now look to the Player Assistance Program for help and work through whatever he is going through.

NHLPA Files Grievance On Behalf Of Ryan Johansen

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The NHLPA has filed a grievance on behalf of free agent center Ryan Johansen after the Flyers terminated his contract in August, the organization announced Thursday.

Johansen and the NHLPA had 60 days to file a grievance after Philadelphia terminated his contract on Aug. 21. They’ve now done so with plenty of time to spare until the deadline.

The Flyers, Johansen, and the NHLPA will now work on coming to a financial settlement. The most recent similar cases to Johansen’s – the Sharks’ termination of Evander Kane’s deal and the Blackhawks’ termination of Corey Perry’s deal – have been settled before reaching an arbitrator. In Chicago’s and Perry’s case, they didn’t even reach the point of filing a grievance before coming to a settlement.

This case seems far more likely than those recent examples to reach an arbitrator’s desk, though. Johansen has never played a game for the Flyers, who placed him on unconditional waivers and terminated his contract for cause with one year and $8MM remaining on his deal, which was spread evenly between Philadelphia and Nashville at a $4MM cap hit for each club.

They acquired him from the Avalanche in last season’s Sean Walker trade shortly before the deadline, but Johansen quickly reported a nagging hip injury and subsequently failed a physical. That happened after the Flyers had already placed him on standard waivers and assigned him to AHL Lehigh Valley, which was reversed by the league after the injury was reported.

It was one of the more peculiar situations in the league in recent memory. Johansen hadn’t missed a game in 2023-24 prior to the trade, recording 23 points in 63 games for Colorado. But after his deal was terminated, Johansen’s agent, Kurt Overhardt of KO Sports, said that he “has a severe hockey injury that requires extensive surgery which has been scheduled.”

The Flyers and Predators each gained $4MM in cap space after the termination. They could both be hit with a salary cap penalty depending on the terms of a potential settlement or arbitrator’s decision.

Snapshots: Boucher, McDavid, Kraft Hockeyville

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Former Toronto Maple Leafs assistant coach Guy Boucher was hoping to be much more of a contender in the team’s head coaching search, shares Sportsnet’s Elliotte Friedman on the 32 Thoughts Podcast. Toronto parted ways with Boucher on Saturday, ending his tenure in Toronto after just one year with the team. Boucher mainly presided over Toronto’s power play, which posted a 23.95 percent success rate this season, down two percent from last year though still a top-10 unit in the league. They lost that special-teams spark in the playoffs, though, scoring on just one of the 21 power plays they received in their first-round loss to the Boston Bruins.

The Leafs were rumored to be interested in a long list of candidates for their head coaching vacancy – including Todd McLellan, Gerard Gallant, and even Rod Brind’Amour prior to his extension in Carolina. Toronto’s assistants were never among the rumored candidates, with the team even overturning Manny Malhotra, who left for an AHL head coaching role and was replaced by Lane Lambert. Boucher may need to follow in Malhotra’s path to the minor league if he’d like another head coaching role, with seemingly no vacancies in the NHL following Ryan Warsofsky’s hire in San Jose. There are currently three head coach vacancies in the AHL – with the Coachella Valley Firebirds, Wilkes-Barre/Scranton Penguins, and Hartford Wolf Pack, though the latter could opt to promote interim head coach Steve Smtih

Other notes from around the league:

  • Edmonton Oilers superstar Connor McDavid has broken Wayne Gretzky’s record for assists in a single postseason, now at 32 after recording three assists in Game 4. McDavid and Gretzky are the only two players to record 30 assists in a single postseason, with Gretzky managing the feat in both 1985 and 1988. McDavid is now up to 38 points in 22 playoff games this year, more than any other player in NHL history save for Gretzky and Mario Lemieux – though 38 points still ranks McDavid as just the fifth-highest scoring postseason, with Gretzky breaking 40 points three separate times, including a record-holding 47 points, and Lemieux once scoring 44. Those will be the records that McDavid is chasing as he looks to will Edmonton to a Game 7 Stanley Cup.
  • The Ottawa Senators will host the Pittsburgh Penguins in the 2024 Kraft Hockeyville Preseason Game, set to take place in Elliot Lake, Ontario. Elliot Lake will also receive $250K to support arena upgrades and $10K in hockey equipment from the NHLPA Goals and Dreams fund. The matchup will bring Canadian superstars Sidney Crosby and Kris Letang to Northern Ontario, and mark Pittsburgh’s first time playing guest to the Senators since a 2-1 overtime loss in March.

NHL Announces Salary Cap For 2024-25 Season

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The NHL and NHLPA have announced the Team Payroll Range for the 2024-25 season. The salary cap upper limit has been set at $88MM, with a midpoint of $76.5MM and a lower limit of $65.0MM. This marks a $4.5MM increase in the upper limit for the 2023-24 season – tied for the highest single-season increase of all time – and a $6.5MM increase from the cap in 2019 and 2020. The upper limit also exceeds CapFriendly’s projected upper limit of $87.7MM – a projection mentioned at October’s NHL Board of Governors meeting. CapFriendly continues to project a $92MM salary cap next season – a mark that continues through the 2020s. The minimum salary is expected to remain at $775K, after growing from $750K ahead of this season.

The NHL incurred $1.5B in escrow debt after pausing the 2019-20 season due to the Covid-19 pandemic. The league has been paying off that debt ever since, with NHL commissioner Gary Bettman sharing it was down to $50M at the start of the season. This big step forward in salary cap suggests the league has fully paid off that debt, something Bettman hinted towards in the pre-season Board of Governors meeting. Bettman added in that meeting, “The game is in great shape. Our franchises have never been better owned or stronger, and we’re excited to have the start of another season upon us.” 

The NHL is showing that a healthy league leads to innovation, set to welcome a team in Utah for the first time next season. Utah will boast the most cap space in the league, with a hardy $43.5MM to spend. They’re succeeded by the San Jose Sharks ($37.5MM in cap space) and Chicago Blackhawks ($34.1MM in cap space), per CapFriendly.

Snapshots: Bruins, Perry, Johnson

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The NCAA free agency frenzy has kicked off and the Boston Bruins could be in the mix for one of the top names, with the Boston Globe’s Matt Porter sharing that the team is interested in Notre Dame’s Ryan Bischel. Bischel has been with the Fighting Irish for the last five seasons, confidently taking over the team’s starting role over the last two. And he’s been tremendous with the opportunity, posting 16 wins and a .931 save percentage in 37 games last season and 15 wins and a .924 in 36 games this year. He managed his high marks while facing an average of 33 shots against each game this season. The performances have earned Bischel plenty of recognition, getting named a finalist for Big Ten Goaltender of the Year this season, after winning the award last year.

Goaltending has been a major sore spot for countless teams this year and any team in need of goaltending depth is likely trying to find out their chances of signing Bischel. That could make it hard for Boston – who already boasts fantastic depth with Linus Ullmark, Jeremy Swayman, and Brandon Bussi – to find an advantage in negotiations. But Bischel’s addition could be aptly timed, with Boston also entertaining trading Ullmark around the Trade Deadline. How NCAA free agency negotiations play out could go a long way toward determining what the Bruins want to do next.

Other notes from around the league:

  • The NHL, NHLPA, Chicago Blackhawks, and Corey Perry have reached a settlement relating to Perry’s termination from the Blackhawks on November 29th, as first reported by Sportsnet’s Elliotte Friedman. Rather than have Perry file a grievance with the league, the two sides agreed to a financial settlement. Perry signed with the Edmonton Oilers on January 22nd and has since scored five goals and seven points in 20 games with the Canadian club. This settlement marks a success in the Player’s Association’s protection of guaranteed contracts.
  • Chicago Blackhawks forward Reese Johnson has entered concussion protocol and didn’t practice with the team on Thursday, per Charlie Roumeliotis of NBCS Chicago. Johnson has been a routine depth forward for Chicago, scoring five points in 42 games. It’s his second season of full-time NHL action, after posting four goals and six points in 57 games last year. Rookie Landon Slaggert is set to make his NHL debut in Johnson’s absence, joining Chicago after the conclusion of Notre Dame’s season.

Houston Rockets Owner Tilman Fertitta Hoping To Add An NHL Team

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The owner of the NBA’s Houston Rockets, Tilman Fertitta, is reportedly in talks with the NHL about bringing a team to Texas’ biggest city, Bloomberg reports (subscription required). The NHL is the last of the major male sports leagues to not have a team in Houston, with the NBA, NFL, MLB, and MLS all existing in the city since 2005. Fertitta told Bloomberg, “We are talking to the NHL, but it’s got to be good for both of us… We just know that when there’s a concert downtown, how it activates downtown, we know what the Astros do for downtown, we know what even soccer does for downtown.”

Fertitta mentions that he’s been discussing an NHL team with the league ever since his acquisition of the Rockets in 2017, but that talks have recently ramped up – even sharing that he’s received interest from Houston suburbs willing to host a team, though Fertitta would prefer to keep the arena downtown. Fertitta’s Rockets currently play out of the Toyota Center, which recently underwent renovations to make it suitable for a hockey team.

Houston has been named as one of six cities interested in potential NHL expansion, with Salt Lake City, Utah, requesting official initiation of an NHL expansion process. The request was made by the Smith Entertainment Group, which also owns the NBA’s Utah Jazz, as well as teams in both the MLS and NWSL. The NHL called Salt Lake a “promising market” and acknowledged the next steps they’re taking towards making Utah their newest host. Houston may soon enter a similar process, now expressing interest in a team a month after Salt Lake City’s request.

While both cities could make sense for an expansion team, the NHL could also eye them as potential landing spots for the Arizona Coyotes, if the team’s ownership can’t make progress on a new arena soon enough. The NHLPA recently shared that Arizona has missed two deadlines to find a new arena, adding significant pressure to the search. That pressure is no doubt added to now with two billionaire ownership groups with ties to the NBA and other professional sports leagues declaring their interest in an NHL club.

NHL, CHL Facing Class-Action Lawsuit Over Antitrust Law

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A class-action lawsuit filed in federal court in Manhattan, New York argues that the NHL and CHL violate antitrust law. The suit – filed in part by the North American Division of the World Association of Icehockey Players Union (WAIPU) – argues that teenagers are, “involuntarily drafted, poorly compensated, and completely controlled” by CHL teams, crediting the exclusivity between the OHL, WHL, and QMJHL and full-time schedules for players as ways players are exploited. It further adds that the NHL supports these challenges through its annual payments to the leagues and specific parts of the NHL-CHL Transfer agreement.

The CHL told the Associated Press, “We have just been made aware of the complaint, filed by WAIPU, an organization that has not been certified to represent any CHL players… Until we can thoroughly review the document, we are unable to provide comment as to the legitimacy of its contents.” The NHL has so far declined to comment.

There is currently no collective bargaining agreement between CHL teams and players – something that the NHL, AHL, and ECHL all have. The nature of the suit draws comparison to recent movements from minor league baseball players and NCAA athletes, who have pushed for expanded supports and compensation. The NHL and CHL did not receive advanced notice of the suit before it was filed on Wednesday morning. University of Illinois labor law professor Michael LeRoy commented on the international status of the suit – which targets juniors teams in Canada and the U.S. – saying, “They’re doing business in the United States, and the end users of the most successful products are going to be, presumably, NHL hockey players both in the U.S. and Canada, I don’t think that’s a problem.”

Evgeny Kuznetsov Enters NHL/NHLPA Player Assistance Program

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Capitals center Evgeny Kuznetsov entered the NHL/NHLPA Player Assistance Program on Monday, the league announced.

Kuznetsov was absent from practice this morning for what the team labeled “personal reasons.” 31-year-old AHL veteran Michael Sgarbossa was recalled from AHL Hershey to replace Kuznetsov on the active roster.

The Russian center will now be out indefinitely while he receives care from the program, and he will not be cleared to return until PAP administrators clear him for on-ice competition. The 31-year-old is in his 11th season with the Capitals after the franchise selected him 26th overall in the 2010 draft.

This is Kuznetsov’s second time entering the program, which was previously known as the NHL/NHLPA Substance Abuse and Behavioral Health Program. He did so voluntarily in 2019 after a positive drug test for cocaine while playing for Russia at the 2019 IIHF World Championship.

Kuznetsov’s 0.40 points per game this season are the lowest of his career, including his limited rookie showing in the 2013-14 campaign. Through 43 games, he has six goals, 11 assists, 17 points, and a 43.2% Corsi share at even strength while averaging 18:47 per game.

He’s only two years removed from a 24-goal, 78-point season, both of which were the second-best numbers of his career. He has one season after this remaining on an eight-year, $62.4MM deal signed in July 2017 that carries a $7.8MM cap hit. The contract carries a modified no-trade clause which awards Kuznetsov a 10-team no-trade list.

With Kuznetsov out for the foreseeable future, Sgarbossa is expected to make his season debut for the Capitals on Tuesday against the Canadiens in a third-line role between Anthony Mantha and Max Pacioretty. Sgarbossa likely won’t be a longer-term fixture in Washington’s top-nine, however, and Kuznetsov’s absence could influence the Capitals to give 21-year-old Hendrix Lapierre another shot after playing 25 games earlier this season. Lapierre, the 22nd overall pick in the 2020 draft, is currently on assignment to Hershey, where he has 11 points in 16 games this season.

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