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Do lengthy contracts show commitment or cap creativity?

Get used to this for the next 17 years, assuming there's no apocalypse.

Jim McIsaac - Getty Images

Get used to this for the next 17 years, assuming there's no apocalypse.

With the breaking of Ilya Kovalchuk's ridiculously long new contract yesterday, I got to thinking about some of the effects of the deal. Would it drive the NHL towards another lockout because of the need for a new CBA? Did he really just sign for the equivalent of 77% of my life so far? Will anyone ever actually serve out the full duration of their deal?

But mainly the question I thought of was this: are the lengthier contracts to avoid cap problems or are they a throw back to the olden days of pre-free agency NHL where players stuck with a team for a long time?

With Kovalchuk signed, there are now 11 players in the league with contract lengths at 10 years or more and it seems like this trend is going to continue as a route to keeping players for cheap in the long run. Of the 11 players, 7 of those players have signed their deals within the last calendar year (give or take) so it definitely smells a bit like salary cap influenced negotiations as some of the effects from the post-lockout CBA are starting to roll in.

Star-divide

These new long term contracts have longterm effects on nearly every aspect of the team.

As a player, by signing a contract like any of those, you do three things. First, you guarantee yourself a spot in the league over the next decade while earning a hefty paycheck. Second, you also limit your income because for all anyone knows, the league could take off financially and player salaries increase drastically. Third, you back yourself into a corner in terms of a trade. For example, a team could spiral downward three or five years after the contract is signed and a player finds himself in a no win situation because potential buyers would be hesitant to take on a contract that rich and lengthy.

As a general manager, you keep a high quality player in town for a long, long time while being able to keep costs down over the long haul and capitalize on building a team around a certain player as the years progress. Also, you give opposing teams something to worry about in the long run. You think Pittsburgh, Philadelphia, New York (X2) are enjoying the thought of facing Ilya Kovalchuk for the next 17 seasons?

As an owner, you now give the fans the "go-ahead" to buy that player's jersey or t-shirt, to commit to the "marriage" between player and team. Hell, most of these contracts last longer than the average real marriages actually do.

John Fischer of In Lou We Trust speaks a bit on the Kovalchuk deal in relation to the CBA:

Some people aren't happy about the supposed front-loaded contract, but all I have to say is: don't hate the player, hate the game. The CBA assigns cap hits by average value and doesn't have term limits on contracts. The Devils aren't going around the salary cap ceiling or floor, so I don't see how this would be a circumvention. Other teams have done this (e.g. Chicago with Marian Hossa), and if anyone is clever enough to exploit the CBA, it's Lou Lamoriello. Clearly, Jeff Vanderbeek is willing to drop the coin, Lou's confident in the committment, and Kovalchuk and his people support the deal by signing it. It's win-win-win for all involved, so what others think is essentially pointless. Get a GM who's willing to be creative with the CBA instead of following a meaningless "spirit of the rule."

This certainly could be the case with Kovalchuk's new contract and likely it was not an effort to circumvent the cap. As John states, sometimes these scenarios are just an all around win for all parties involved. The matter now just rather concerns the level of dedication the franchise will show to him (and vice versa) over the course of the contract.

With two of the aforementioned 11 long-term deals on their roster, the Red Wings have made major commitments to Johan Franzen and Henrik Zetterberg. As a fan you get to experience the thought firsthand that these players are Red Wings for life, a theme that used to be prevalent in the pre-free agency era. So as seemingly more and more players sign deals to stick with a team (3 teams have a pair of the 11 mentioned) does the sense of being a "lifer" come into play or is it just the way the business is run these days?

I believe it's a little bit of both. Obviously, you want to keep your good players and you want to keep them for a long time to prevent them from hurting you as an opponent down the road. In addition, you want to do so in a smart financial manner that allows you wiggle room down the road by diminishing the value of the contract over time. However, as an owner/GM, you show your commitment to a player and create that sense of family by bringing him in for such a long period of time. You create the chance for that player to become a legend in that city and an icon of the franchise, for better or worse.

Will Kovalchuk become a legend in New Jersey? Far too early to tell. But the ownership has presented him the opportunity to do so with such a contract.

Your turn. Do lengthy contracts show a trend in getting around the salary cap or are teams rewarding players for their commitment to the organization?

Poll
Which purpose do the long-term deals serve?
to avoid the cap issues
227 votes
to honor a player's desire to remain with a team
30 votes

257 votes | Poll has closed

0 recs  |  Comment 13 comments |

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It's all about beating the Cap

While i’m happy the Wings locked up Franzen , Dats and Z for a very longtime . I’m still kind of mad us fan’s had to miss a whole season over a Cap the owners claimed they needed so bad .

Then boom the same people who needed the cap so bad had their GM’s find a loop hole so they could spend away . The other problem is what happens if a player goes rouge 3 years in how can you move a player who you have locked in for 10 /17 years ?

Or what happens if we have a lost season again in say 2012 . After the new lockout the Cap falls way down or the new CBA changes how the cap hit works now a player you had locked up for a lifetime deal goes from a 4 mill hit to a 7 mill hit

Show me the CUP

by Mashman on Jul 20, 2010 4:03 PM CDT reply actions  

Interesting points, for sure

I’m not sure they’d change how a cap is calculated, though. Lou and Holland followed the rules, as flawed as they may be, so I can imagine there’d be a huge backlash if they altered how their contracts count.

I agree 1000% though about futzing with the numbers so much that it’s going to lead to another lockout — or, at least, an ugly power struggle. I’d bet anything that in the next CBA, they limit term length to 5, 6, MAYBE 7 years.

Certain teams will be screwed if and when the cap is lowered, though, like you said. It’s totally fair to assume such a thing will happen, and Detroit might lose a player or two if that’s the case (if a buyout window is offered like last time, there might be some unlucky folks on the other side), but their core will remain with the team, regardless of cost and percentage of the cap.

by Michael Petrella on Jul 20, 2010 4:23 PM CDT up reply actions  

Personally I don’t see any difference in salaries now compared to before the lockout. The only difference is that we won’t see many Yzerman’s, Modano’s, and Sakic’s anymore. Good teams that draft well won’t be able to give raises to the players they develop. One thing that would be better is raising the age of free agency again. I like the idea for a longer RFA period which would help the player poaching that goes on now. At least then you get some compensation when you lose players because you develop them into good players, but can’t fit them in your salary structure.

by dewman8810 on Jul 20, 2010 5:17 PM CDT reply actions  

The player matters

You have to know Holland is confident that Zetterberg and Franzen can contribute for the life of the contract because he knows them so well. He’s seen them perform under pressure, and has a reasonable expectation they will not stop playing hard just because they got a big deal.

On the other hand, Chicago and New Jersey didn’t know Hossa and Kovalchuk before they signed them, and probably don’t know whether or not they will continue to play hard now that they have their big deal. There definitely is a comfort level that comes from knowing a player for a few years vs. a few months.

The other reason Kovalchuk’s is such a bad deal – he’ll be 44 years old, and they’ll still have a cap hit of 6 million per year! There’s no way he’s worth that cap hit, even if the cap is 100 million in 17 years. At least Franzen and Zetterberg’s expire when they’re 39 or 40, at which age they can still be reasonably productive.

by Oost on Jul 20, 2010 10:38 PM CDT reply actions  

Wow look at that

The NHL voided the contract i guess the league like most people belive Kovy won’t be playing at age 44 .

Show me the CUP

by Mashman on Jul 21, 2010 12:26 AM CDT reply actions  

Calling out Deadspin

Deadspin is jumping on the bandwagon and slandering Z and Mule’s contracts along with Kovy’s. I’ve started the retort, but we need more folks to chime in.

by nitzua on Jul 21, 2010 9:29 AM CDT reply actions  

Actually, Deadspin is right

Z, Dats and Franzens contract structure is to circumvent the cap, they’re just not as blatant about it as Kovalchuks. You posted a great response though

In life, a man is either the hammer or the anvil. Ndamukong Suh is both
Pride of Detroits village idiot

by JazzyBBP on Jul 21, 2010 11:13 AM CDT up reply actions  

A better choice of words

Would be that it’s realistic that Franzen and Z play until 40. Sure it’s built to circumvent the cap, but it’s also very likely to be fulfilled.

Also, Datsyuk’s contract is for 6.7 mil every year until 2014. It does not change at all.

by Brion on Jul 21, 2010 12:22 PM CDT up reply actions  

Also the money at the end of Zetterberg and Franzen’s contract is a good reflection of how much they should be making at around 40 years old. Why not just put it in one big contract and lower the cap hit, instead of doing 5 years with a cap hit of around $7.5 million, then another 5 years with a cap around 3 or 4 million. Might as well help the team stay competitive and combine it. The Zetterberg and Franzen contracts are totally realistic. The Kovalchuck one is not at all realistic because we all know that there is no way Kovalchuk will play in the NHL until age 44 only making $550,000 for five years. If he really wanted to keep playing and was able to at a high level, he would just retire from the NHL and look for more money in the KHL to finish his career. That is why the league got this one right and should have voided the contract.

by dewman8810 on Jul 21, 2010 9:30 PM CDT up reply actions  

I really think blatant is even too harsh a word. The fact is, both guys would have signed with the Wings for life (and for less money than they’re worth, if needed) if given the chance, even if the CBA wasn’t written like a team of monkeys were behind it.

by nitzua on Jul 21, 2010 5:08 PM CDT up reply actions  

I think you're both right

they prolly would’ve signed for 5 years at a time.
Would obvious be a better word than blatant? lol

In life, a man is either the hammer or the anvil. Ndamukong Suh is both
Pride of Detroits village idiot

by JazzyBBP on Jul 21, 2010 7:35 PM CDT up reply actions  

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