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Evander Kane

Latest On Sharks’ Evander Kane, Tomas Hertl

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Between the ongoing investigation into Evander Kane and the trade rumors swirling around Tomas Hertl, it seemed that potentially neither would be back with the San Jose Sharks this season. Add in that Hertl is believed to be one of the Sharks’ core members who was upset with Kane’s presence in the locker room last year and did not want him to return, it certainly did not seem that both would be back in 2021-22. Yet, it is growing increasingly more likely that this in fact will be the case.

Kane tells ESPN’s Linda Cohn that he expects the NHL’s current investigation into allegations that he bet on NHL games, and Sharks games in particular, to go nowhere. Kane states that these allegations were entirely fabricated by his estranged wife during the course of an ugly and public divorce:

Obviously (the accusations are) incredibly false. It’s unfortunate that transpired, and it’s unfortunate that those false allegations were made. I understood the magnitude of them immediately. I know (they’re) not true. I know none of what she was saying was true. I was very confident, comfortable with knowing that I was going to be exonerated and am going to be exonerated of those allegations.

While Kane’s investigation is far from his only off-ice concern – bankruptcy case, gambling addiction, and other unsavory allegations – it is seemingly the only grounds that the NHL would have to suspend him or San Jose would have to terminate his contract. And while the Sharks could explore trading Kane, it would be difficult to move his baggage an an extremely no-trade clause does not help. If Kane is cleared, it seems likely that he will be back with the Sharks this season.

Unless that fact itself is the final straw for Hertl, he too seems to be heading back to San Jose to begin the season. Speaking to NHL.com’s Tracey Myers, Hertl stated that he not only expects to attend training camp and open the year with the Sharks, but he is open to extension talks as well. Of course, it seems more likely than not that Hertl heads elsewhere as a free agent next summer, if not via trade sooner, but he will not be requesting a trade out of San Jose; quite the contrary, in fact. Hertl is looking to take on more of a leadership role with the Sharks this season to fill the gap of departed veterans like Joe Thornton, Patrick Marleau, and Joe Pavelski. Hertl clearly cares about locker room chemistry and still seems to be thinking only of the present in San Jose and not his future. Will he remain as focused if the locker room he is trying to lead includes Kane though? That could be the big question for the Sharks early this season: can the two co-exist and, if not, which one is moved first?

League Notes: Salary Cap, Kane, Vaccine Status

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During the league’s media tour today, deputy commissioner Bill Daly spoke with several outlets including Sportsnet’s Elliotte Friedman to answer questions and discuss several topics related to the upcoming season. One that doesn’t have a direct impact on this year’s campaign however is the expected $1MM rise in the salary cap ceiling for 2022-23, which Daly confirmed today. Though it isn’t official until revenue figures come through, this is what Frank Seravalli of Daily Faceoff reported at the beginning of August when he examined the current revenue projections.

That increase shouldn’t come as a sign everything is back to normal though. Seravalli’s report indicated that the cap ceiling would not see a significant increase until 2026-27, given the huge escrow debt the players have to pay off. While a $1MM increase gives teams a little bit of wiggle room, they are still in a relatively flat cap situation for the next few years.

  • Daly also told Friedman that the investigation into allegations that Evander Kane gambled on NHL games is still expected to conclude before training camp opens later this month. Though he explains that a report will come out, it’s still unclear whether it will be entirely available to the public. The league opened an investigation into Kane after his estranged wife, Anna Kane, posted accusations on social media claiming that the San Jose Sharks forward bet on games he was involved in; he denied those claims.
  • Speaking with Seravalli, Daly explained that the league currently projects 98% of their players will be fully vaccinated by the start of the season. The deputy commissioner expects just 10-15 total players will be unvaccinated, though that obviously depends on final roster cuts. Those players will be subject to stricter protocols this season, and could face withheld pay for games missed due to COVID-19.

Latest On Evander Kane Investigation

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Even in the midst of a career year in terms of per-game scoring, Evander Kane’s 2020-21 campaign was dominated by off-ice issues. A bankruptcy filing and its ongoing proceeding, whispers of locker room discord, a divorce playing out in the public eye, and finally allegations that he bet on hockey has made Kane the most infamous name in the NHL right now. And unfortunately all of that noise may not be going away this season. A.J. Perez of Front Office Sports reports that the NHL’s investigation into Kane has stalled and a decision may not be possible before the San Jose Sharks open training camp, if Kane was going to be invited anyhow.

Kane’s estranged wife, who initially made the allegations that her husband had gambled on his own games, has been uncooperative with the NHL’s outside investigators. Anna Kane has been unavailable for interview, making it impossible for the investigation that centers around her claims to continue. The NHL will not wait around forever, but need to do their due diligence when it comes to something as serious as a player betting on his own contests and impacting the integrity of the game. While Kane had previously stated that these allegations were not true and a ploy by his wife to ruin his career – a claim that gains validity the longer she avoids the investigation – the NHL will be hesitant to take Kane at his word without any corroborating evidence.

Perez does note that the NHL analyzed betting trends for Sharks games this past season and found no abnormalities. While this does not eliminate the possibility that Kane was betting on his games, or even on other NHL action, it could be all that the league can lean on if not other information has been discovered and Kane’s wife will not comply with the investigation.

Meanwhile, the Sharks have to decide how to deal with the situation, both if Kane is still under investigation when training camp begins or, even more intriguing, if he has been cleared. If the NHL rules that Kane did not bet on hockey, it doesn’t totally wipe the slate clean. He is still in the midst of bankruptcy proceedings related to gambling debts and has had other ugly allegations made against him by his wife (and vice-versa). All of this has certainly contributed to the numerous reports that there are many in the Sharks locker room who are unhappy with Kane’s presence and the organization’s continued support of the polarizing player. While none of his other off-ice issues beyond the NHL’s investigation will keep him from playing, there is serious question as to whether it will be in San Jose. Even at the top of his game, Kane likely lacks much if any value on the trade market right now, but the Sharks may need to do whatever they can to move on. A stalled investigation will make it near impossible to do that though.

Snapshots: Kane, Saros, Pettersson

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With an investigation ongoing into allegations that he bet on NHL games, Evander Kane’s future with the San Jose Sharks isn’t clear. But it was long before that things started to deteriorate between the $7MM forward and his team. Kevin Kurz of The Athletic published an explosive piece today examining the situation in San Jose, reporting that “several key players” told the Sharks management that if Kane remained with the team, they didn’t want to stay.

Kurz writes that the Sharks did explore trading Kane earlier this offseason, but that obviously didn’t come to pass. Now with this new allegation, the reports of locker room turmoil and a bankruptcy case continuing in the background, the 30-year-old forward is “virtually untradeable.” Kane is currently signed through the 2024-25 season and holds a modified no-trade clause that allows him to list just three clubs he could be traded to. He also is coming off arguably his best season as a professional, with 22 goals and 49 points in 56 games.

  • The Nashville Predators are approaching an arbitration hearing with starting goaltender Juuse Saros, scheduled for August 18. Adam Vingan of The Athletic breaks down the case that both sides have, but notes that Saros’ camp is looking for a long-term deal, while the Predators are hoping for a three to four-year contract if things can be worked out before the hearing. Saros truly broke out this season, finishing sixth in the Vezina Trophy voting and even receiving some Hart Trophy recognition, after posting a 21-11-1 record with a .927 save percentage. The 26-year-old goaltender is just a year away from unrestricted free agency, meaning any multi-year contract would be buying out almost exclusively UFA seasons. An arbitration ruling on the other hand could only be one year in length, taking him right to the open market next year.
  • Elias Pettersson is another restricted free agent without a contract, but he doesn’t seem too worried about it. The Vancouver Canucks forward spoke to Uffe Bodin of Hockeysverige and explained that though the two sides are not in agreement on a deal yet, he’s confident they will find a solution. Pettersson also clearly indicated that he wants to be on a winning team, meaning if they want to keep him long-term, the Canucks better start making the playoffs more often.

NHL Opens Investigation Into Evander Kane Gambling Allegations

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Aug 1: Emily Kaplan of ESPN reports that league officials will meet tomorrow to determine who will conduct the Kane investigation. The league, according to Kaplan, expects it to be completed before training camp in September.

July 31: Earlier today, allegations were made on social media by Evander Kane’s wife Anna Kane that suggested the San Jose Sharks forward had placed wagers on NHL games he took part in. The claims have not been proven to be true, but the league has opened an investigation into the matter. A statement from the league reads:

The League was made aware this evening of a post on social media alleging that San Jose Sharks Player Evander Kane bet on NHL games. The integrity of our game is paramount and the League takes these allegations very seriously. We intend to conduct a full investigation and will have no further comment at this time.

The Sharks have also released a statement:

The San Jose Sharks have been in contact today with the NHL about the serious allegations made against Evander Kane.  We support a full and transparent investigation into the situation to maintain the integrity of the game and consistency with our team values.

No evidence has been publicly provided to support the allegation. Kane released a statement denying the allegation:

Unfortunately I would like to address the completely false accusations that my estranged wife and soon to be ex-wife has made against me. Even against the advice of my legal team I feel stronly that the public and fans hear this directly from me. I have never gambled/be on hokey, never gambled/bet on a Sharks game, never gambled/bet on any of my games and never thrown a hockey game. The facts are I personally had my best season of my career last year and was the most consistent I’ve been throughout any season, I’m proud of that. I love the game of hoceky and would never do any of what was alleged. I look forward to cooperating fully with the league’s investigation, having my name cleared and looking forward to this upcoming season. 

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.

Snapshots: Kane, Morrow, Tangradi

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Evander Kane has had a tremendous season for the San Jose Sharks, recording a team-best 45 points in 52 games. The achievement is all the more impressive given the safe assumption that Kane’s focus has not solely been on hockey this year. The star forward has been mired in Chapter 7 bankruptcy proceeding all season, filing in January and then in March motioning for an extension on the decision until June on the grounds that his contract with the Sharks could be terminated following the end of the season. While it remains to be seen whether this in fact occurs or not, the latest development in the case has the bankruptcy court deciding that Kane’s case will remain in Chapter 7 as opposed to Chapter 11. A lender had filed a motion for Kane to be treated as a business under Chapter 11 due to his debt mostly coming from gambling losses. Such a decision would have opened up Kane’s future income to his lenders in the bankruptcy decision, but such an outcome was avoided.

At least one lender has decided that if they can’t get to Kane’s future earnings via bankruptcy decision, they’ll go after a greater return on their defaulted loan another way. Per The Athletic’s Daniel Kaplan, Professional Bank has sued Kane for $15MM, alleging fraud on the basis of misrepresenting the Sharks’ role in his repayment plans. This amounts to ten times their initial loan due, justified as “punitive damages.” This is highly irregular in a case such as this, as punitive damages are not substantiated by a claim but rather are meant as punishment. Punitive damages to this massive extent are very unlikely to be awarded, especially with Kane’s bankruptcy proceeding still ongoing, but Professional Bank will try their best.

  • Winning a national championships comes with some added perks, the least of which is increased recruiting power. Defending champs UMass flexed their newfound market power today, convincing potential 2021 first-round pick Scott Morrow to flip on his commitment to North Dakota and got to Amherst. Multiple sources have confirmed the move, with the talented right-handed defenseman moving from one powerhouse to another. Morrow was expected to join a deep group of NHL-caliber defensemen at UND this year, but will have more of an opportunity to shine as a top blue line option at UMass. It has worked out nicely for Cale Makar, Mario Ferraro, Zac Jones, and several other NHL prospects over just the last few years.
  • Eric Tangradi, Real Estate Agent? In a unique twist, former NHL winger Tangradi announced his retirement by transitioning it into the reveal of his new career. A big, powerful winger who appeared to have NHL chops early in his career, Tangradi never could quite translate his AHL production to the next level. He still managed to play in 150 NHL games with the Penguins, Jets, Canadiens, Devils, and Red Wings, but recorded just 16 career points. Tangradi will likely be remembered more for his many years of dominance in the minors, recording over 350 points in 488 career NHL games.

Trade Deadline Primer: San Jose Sharks

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We are now less than a week away from the NHL Trade Deadline and talks are heating up. Where does each team stand and what moves should they be looking to make?  We continue our look around the league with the San Jose Sharks.

Earlier this season, it appeared as if the San Jose Sharks were in for another disappointing year. The club wanted to use the shortened 2020-21 campaign to evaluate their core and the early returns were not encouraging. However, the past few weeks have changed everything. The Sharks are 6-3-1 in their past ten games, including four straight wins. In the meantime, the St. Louis Blues have continued to slump while four of the Sharks’ recent wins have come against the Los Angeles Kings. Suddenly, San Jose finds themselves in contention for a playoff spot in the West Division, just three points back with a game in hand on the fourth-place Arizona Coyotes.

With that said, some recent luck is not going to change the Sharks’ plans for the season. The team is not going to give up major assets for short-term help just on the off-chance that they can sneak into the playoffs where the West’s daunting top three teams await. The core is still in the process of proving themselves and San Jose likely wants to see if they have the pieces in place to be a playoff team once again, knowing that rentals will not put themselves over the top this season. This does not mean that the Sharks will sit back at the deadline though; the club has some fringe pieces on expiring contracts that they could look to deal away and there are some needs beyond this season that they may discover a chance to address. In short, San Jose is unlikely to stand pat, but don’t expect them to sell off anything more than rental pieces or to acquire any major rental help of their own.

Record

17-16-4, .514, T-5th in East Division

Deadline Status

Light Seller/Opportunistic Buyer

Deadline Cap Space

$2.41MM in full-season space ($10.74MM at the deadline), 0/3 retention slots used, 48/50 contracts used per CapFriendly

Upcoming Draft Picks

2021: SJS 1st, SJS 3rd, SJS 4th, SJS 5th, SJS 6th, SJS 7th
2022: SJS 1st, SJS 2nd, SJS 3rd, SJS 4th, SJS 6th, MIN 7th

Trade Chips

In terms of rentals, the Sharks do not have much to offer other buyers. However, for that same reason they will probably not hesitate to move any of their expiring contracts if there is interest. None of the Sharks’ impending UFA’s are anything more than depth pieces, in San Jose or elsewhere. The Sharks’ ability to retain salary if need be could result in some better trade returns, but there isn’t much to get excited about.

Among the rental group, veteran goaltender Devan Dubnyk is likely their most valuable trade chip, if only because he is one of a small number of available net minders with postseason experience. The Sharks’ plan to combine Dubnyk and Martin Jones and hope one will rediscover their starter status has not really worked out. Jones has improved marginally this year, but Dubnyk has been a bust. The 34-year-old has an .898 save percentage and 3.18 GAA thus far, resulting in just three wins on the year. Dubnyk will not command much of a return unless the scarcity of goalies creates a bidding war. There are certainly those in San Jose who would like to see Jones traded, but that move won’t happen at the deadline, if it ever happens at all.

Up front, Patrick Marleau is the biggest name, but not likely to be the most valuable. Sure, Marleau brings more experience and leadership than most in the game, but he did not work out as a rental for the Pittsburgh Penguins last year and that was even after finding decent success with the Sharks pre-trade. The 41-year-old has been a non-factor this season with just six points 37 games and may not even have any suitors. Making the playoffs one last time with the Sharks would probably mean more than another go-round as a rental for the respected veteran. The real name to watch among San Jose’s expiring forwards is Marcus Sorensen. Although his production has been poor this season, Sorenson is a good two-way forward and notched 17 goals and 30 points just two years ago. Contenders looking for fourth line options could do worse than Sorenson. Matthew Nieto and Kurtis Gabriel are other bottom-six forwards who could have value, but Nieto is currently injured and Gabriel has become a well-liked locker room presence for the Sharks this year, so neither is a lock to leave.

Others to Watch For: D Fredrik Claesson ($700K, UFA), F Fredrik Handemark ($925K, UFA), F Stefan Noesen ($925K, UFA), F Antti Suomela ($700K, UFA), D Nick DeSimone ($700K, Group 6 UFA)

Team Needs

1) Term Forward – Even if the Sharks don’t venture into true “buyer” territory, they still need to keep their eyes open for possible forward additions for next season – or more accurately, for the Expansion Draft. San Jose is in a tough situation when it comes to meeting the exposure requirements of the impending draft. Currently, they have just five forwards who meet the games played and term criteria and all five will almost certainly be protected: Logan Couture, Evander Kane, Timo Meier, Tomas Hertl, and Kevin Labanc. They have zero forwards who can meet the exposure requirements simply by playing more games this season. This means that the Sharks must add two forward before the draft, either by re-signing or acquisition. Their extension candidates, who would qualify by only signing on for another year, include Sorenson, Marleau, and Nieto – any of whom could be traded and none of whom appear to be part of the Sharks’ future – and Dylan Gambrell and Rudolfs Balcers, who would seemingly be competing for the seventh and final protection spot. As a result, it seems more likely than not that San Jose will need to make an addition before June and they may as well add some additional help before the deadline, especially if the likes of Sorenson, Marleau, or Nieto head out of town. The Sharks could honestly use another long-term top-six forward, especially with the futures of Kane and Hertl in doubt, if they do decide to take a bigger swing at the deadline.

2) Goaltender – If the Sharks do trade Dubnyk, they won’t have much choice but to add another goaltender. The club likes young keepers Alexei Melnichuk and Josef Korenar, but the duo’s AHL numbers show that they are not ready for NHL backup duty this year and probably not next year either. San Jose could look for a cheaper rental to replace Dubnyk or they could look for a goalie with term or an impending free agent that would warrant an extension. The Sharks have previously been linked to the Florida Panthers’ Chris Driedger.

3) Prospect Defensemen – If the Sharks are not successful in landing valuable draft picks in exchange for their rentals, they should target defensive prospects. While San Jose has some nice young defensemen at the NHL level, the pipeline is all but bare behind polarizing Ryan Merkley. The team desperately needs to add bodies on the blue line, especially with an aging core in the NHL and the potential to lose a roster defenseman in the Expansion Draft.

Erik Karlsson Does Not Want To Be Part Of A “Rebuild” In San Jose

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Star defenseman Erik Karlsson does not want to become mired in a rebuild with the San Jose Sharks, and who can blame him? Karlsson signed a long-term extension with the Sharks, who not only had gone to the Western Conference Final in his first season, but were considered one of the most consistent franchises in the NHL and even North American pro sports overall since the turn of the century. While Karlsson certainly didn’t take a discount to stay in San Jose, inking an eight-year, $92MM contract that made him the third-highest paid player in the league at the time, there was an expectation that his re-signing would put the Sharks over the top and keep them contenders for years to come. Yet, last season was an unmitigated disaster, as the team finished with the third-worst record in the league, and so far this year things aren’t looking much better. San Jose is again a bottom-ten team in the NHL and unlikely to make the playoffs. People are starting to get worried, and Karlsson is among them.

Speaking to the media, including San Jose Hockey Now’s Sheng Peng, Karlsson stated that “Obviously, I did not sign here to go through a rebuild. [To] go through what I did for 10 years in Ottawa.” However, he did continue on more of an optimistic note. “We need to find a way to build with the core that we have,” Karlsson opined, “I do think we have a good group of guys here.” Karlsson is by no means stating that he wants to be traded, now or in the event that the Sharks continue to struggle this season. Instead, he is seemingly making a public outcry to his own front office, after GM Doug Wilson referred to a “reset” earlier this week, that he feels San Jose has a strong enough core to build upon moving forward rather than tear down and start over.

Karlsson’s comments clearly come from a place of emotion during a difficult time for he and his teammates. Case in point: he vastly overexaggerated the state of the Senators franchise during the early part of his career. Ottawa made the playoffs five times in Karlsson’s nine (not ten) seasons with the team, even coming just one win away from a Stanley Cup Final berth in 2016-17. Only in Karlsson’s final season did they devolve into one of the league’s worst clubs and were truly in need of a rebuild. However, in the midst of his third losing season in the past four years, it seems the losses are starting to weigh on Karlsson and he doesn’t want the team to make matters worse by stripping away the core.

But is he correct that the Sharks can return to relevance as currently constituted? The team has plenty of talent on paper with a blue line of Karlsson, Brent Burns, and Marc-Edouard Vlasic and Logan Couture, Evander Kane, Timo Meier, and Tomas Hertl up front. There are also some nice young pieces on the roster like Mario Ferraro and John Leonard, and some intriguing names in the pipeline as well. Yet, it hasn’t shown in their results. Additionally, San Jose has a considerable amount of their cap space for years to come tied up in this core and what space they do have needs to primarily be used to rectify a dire situation in net. The Sharks may find it difficult to add impact players elsewhere on the roster in the meantime. Even if there is space, the team may hesitate to add more expensive pieces to their underperforming group. So, if the team is good enough to avoid a rebuild as Karlsson states, it starts with he and his teammates playing up to expectations and showing just that. Otherwise, the Sharks’ brass will have no choice but to shake things up.

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.

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