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Clearing Up a CBA Misconception

The other day, George Malik posted an article at Kuklas Korner about the recent situation with the demotion of Wade Redden to the AHL.  In the article, George states what I also thought was true, that demoted players' salaries still count towards the Players' Share owed when final escrow responsibilities are calculated.  A commenter from HFBoards visited and set the record straight.  George, being the stand-up guy that he is, wrote a mea culpa about the misunderstanding after getting a quote directly from the NHLPA that confirms the situation.  Here's what NHLPA spokesman Jonathan Weatherdon had to say when asked, as also posted in George's article today:

On background, salaries paid to players on one-way contracts who are not in the NHL (i.e. Huet, Redden) are not included in the salaries that are used to determine the Players’ share of the overall HRR.

Boiled down, this means that Redden's and Huet's salaries will continue to be paid to the players, but these do not at all factor in to the Players' Share.  These two buried contracts have no affect on increasing the escrow owed back to the league by the players at the end of the year (if any is needed).  Furthermore, the CBA states that ALL players pay into escrow as long as they're under contract, so the buried players are paying into an escrow pot whose size is unaffected by the remainder of the money they made.  Of course, I will not cry for Redden or Huet in this circumstance, but I do owe everybody a correction because of this issue too. [EDIT - according to player agent Rand Simon, players in the AHL do not pay into Escrow.  Update via Malik]

In the article in which I called burying Huet's contract in the minors or in Europe a circumvention of the spirit of the cap in light of the Richard Bloch ruling on the Kovalchuk case, I wrote this:

The Players' Association ultimately shouldn't be happy that there's a $5.6M goaltender going to a foreign league, but this isn't a fight for them to pick, unless they want to pick it from an angle that the money going to pay Huet in Europe should in no way be counted as part of the players' share when calculating how much escrow they'll have to give back next year. 

...Chicago's punishment will be off the books here as it should be; it will come in the form of many free agents' second-guessing whether they want to voluntarily sign a contract with the organization that may try to hide your salary in Europe if they make a change to their team's strategy that doesn't include you or your albatross contract and it will come in the form of what essentially constitutes a $5.6 million fine for moving Huet to Europe.

Seems that this is exactly the punishment both Chicago and the Rangers are receiving thanks to those two bad contracts.

I would like to note that this clarification in no way changes my thought that burying NHL-caliber talent outside of the NHL for little more than cap room is a circumvention of the spirit of the cap, considering the Rangers and Blackhawks can afford to do this while other teams can't.  Without charging into a diatribe about competitive balance and the like, I believe that cap hits over $1 million should remain on a team's books regardless of whether the player is in the minors.  The Rangers were one of the biggest teams clamoring for rules in this CBA which would protect them from themselves and their own out-of-control spending and it seems that they've found a loophole that allows themselves to stay in spending trouble.  I think it would be beneficial to both sides to close this loophole.

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Waiver-Buyout

I think players that must pass through waivers, should be able to chose between re-assignment or buy-out. It should not be a one way street in which the team circumvents the salary cap hit but the player is forced to play out the rest of the contract in the AHL or walk away completely.
No matter how well Redden, Huet, Souray etc. play in the minors or injuries their teams face the teams will not re-call them because they would have to go through re-entry waivers and these players would be claimed by another team, and the teams would then have to pay 1/2 the salary and take 1/2 the cap hit.
Obviously the salary is not the problem, since the teams get a break there, it’s strictly the salary cap hit they are avoiding, and the teams only get about a 2/3 break there. The buy-out is a two way street for the both player and team.
Alternatively if there was a less then one season limit to how long a player can be re-assigned then you would see buy-outs instead of sending a player to contract purgatory, just for the cap relief. Buy-outs were intended to be the fair way out of a contract.

by Busterbuddy on Sep 30, 2010 6:11 PM CDT reply actions  

Waiver-Buyout

One issue with buyouts I believe is they can only happen on the day before free agency.
I believe the NHLPA might be opposed to players being sent to contract purgatory for years.
Owners/GMs should not be able force a player, that can still play in the NHL, into a potential contract breaking position, while at the same time gaining relief from the salary cap, for a guaranteed contract that the Owner/Gm signed.
The other Owners might also not be so happy that some Owners are essentially ignoring the salary cap by overpaying for players then also denying other teams access for years to those players who would want them at a reasonable price by AHL stashing them.
If I was the agent for Souray I might ask a judge for a stay of the re-assignment since they did not even let him compete against the other players. Incompetent GMs acting badly.
I would bet this happens eventually to many of the players on those long term contacts.

by Busterbuddy on Sep 30, 2010 7:47 PM CDT reply actions  

I'd worry about one big thing

What if a player gets his big guaranteed contract & decides he just wants the money and forces the buyout to retire comfortably forever on his payday?

by J.J. from Kansas on Sep 30, 2010 11:05 PM CDT up reply actions  

Misunderstanding a little known CBA rule...

This is clearly a do-over for teams that pass the “Alexander Daigle” test. If a players will to compete or his skill set diminishes to a level less than or equal to that of Daigle, then said team is allowed to bury said player as long as his name is NEVER said in said teams dressing room ever again. I hope this clears things up for you guys.

by JasonLindros on Sep 30, 2010 9:34 PM CDT reply actions  

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