Salary Cap: Anybody else think what Ottawa did is BS?

[Arthur Fonzarelli]

The deal seemed odd to me as well so I spent some time on the Ottawa boards reading up.

In essence the trade helps Ottawa save $2 million in actual money. Callahan is going on LTIR so insurance will pay a good portion of this salary. Players on LTIR still have their salaries count against the cap which allows Ottawa to reach the cap floor without actually spending money.

Senator fans are getting ripped off by their owner & GM as they deliberately ice a team beneath the cap floor, circumventing the CBA with shenanigans. 1/4 of their cap space is being spent on players that won't step on the ice in the upcoming season, being either on LTIR or have been bought out. Presently Ottawa has more money being allocated to LTIR than they will pay their 7 defensemen.

Meanwhile a division rival in cap hell just had a good portion of their problem go away and did little else than trade what will be a low 5th round pick (TB is a Cup contender) for what will in all likelihood be the best 6th round pick (Ottawa in the pole position to be the leagues worst team)...AND Tampa got another goalie in Condon.

Horrible hockey trade, brutal for Senator fans, great news for Tampa Bay. They were hard pressed to sign Brayden Point and it was another team from the Atlantic Division that just help them achieve it.

From a personal level Sens owner Eugene Melnyk saves $2 million. He's rather good at things like this. Melnyk owes much of his fortune to Biovail (yes the company from Steinbach...I provided entertainment services to their Christmas party at the Victoria Inn for many years) where he "repeatedly overstated earnings and hid losses in order to deceive investors and create the appearance of achieving earnings goals. When it ultimately became impossible to continue concealing the company's inability to meet its own earnings guidance, Biovail actively misled investors and analysts about the reasons for the company's poor performance."

He's actually banned from playing playing a senior role in public companies due to ethics violations, so circumventing the cap floor is old hat for him.

 

[nobody imp0rtant]

From a personal level Sens owner Eugene Melnyk saves $2 million.

That's $2 million more he can now put toward offer sheeting Laine.

 

[Arthur Fonzarelli]

That's $2 million more he can now put toward offer sheeting Laine.

I get joke, but to repeat the facts here, Ottawa actually took on more cap space with yesterdays deal.

So that $5.8 million LESS to offer sheet Laine.

If Melnyk is doing all of this as some sort of Sith level master plan to offer sheet young RFAs, I will buy Ottawa season tickets and I've never been there.

See above

 

[tbcwpg]

That's $2 million more he can now put toward offer sheeting Laine.

If Melnyk is doing all of this as some sort of Sith level master plan to offer sheet young RFAs, I will buy Ottawa season tickets and I've never been there.

 

[KingBogo]

Where did you find out that Callahan's salary is covered by insurance?

It was in an article in the Athletic on the TB page.

 

[cbcwpg]

Big money trade: Sens deal goalie Mike Condon for injured forward Ryan Callahan

Callahan has a salary cap hit of $5.8 million for the 2019-20 season, the final year of a $34.8-million deal he signed in 2014. It was a sliding contract, however, meaning he was paid less in the deal’s final years. His 2019-20 salary is $4.7 million.
This is where the NHL’s long-term disability insurance program kicks in to the Senators advantage.
With insurance covering 80 per cent of that total, the Senators will pay only $940,000.

 

[Arthur Fonzarelli]

Big money trade: Sens deal goalie Mike Condon for injured forward Ryan Callahan

Callahan has a salary cap hit of $5.8 million for the 2019-20 season, the final year of a $34.8-million deal he signed in 2014. It was a sliding contract, however, meaning he was paid less in the deal’s final years. His 2019-20 salary is $4.7 million.
This is where the NHL’s long-term disability insurance program kicks in to the Senators advantage.
With insurance covering 80 per cent of that total, the Senators will pay only $940,000.

But the full salary amount counts against the cap correct?

So the deal leaves Ottawa with less to spend on actual players and now have $13,525,000 committed to LTIR & another $1,458,334 committed to buy outs.

Sucks to be a Senators fan.

 

[Gm0ney]

I get joke, but to repeat the facts here, Ottawa actually took on more cap space with yesterdays deal.

So that $5.8 million LESS to offer sheet Laine.

View attachment 247315



See above

They can go up to $96M with all that LTIR on the roster!

 

[raideralex99]

I dint think people that never have to ever sign the front of a cheque should complain about someone being cheap. Ottawa isnt competing for a spot this year so saving a couple of million isnt a bad thing. That was their 3rd string goalie. What should they do pay him 3 million for nothing.

Well the Leafs had to trade a 1st round pick to dump Marleau so that should be the going rate. Tampa has 2 first round picks so trading one would be no bid deal especially if they wanted to keep Point.
That trade did NOTHING for Ottawa ... moving from spot #186 to #185 in the draft is a fricken joke but it did put $$$ in Melnyk's pocket.
It wouldn't even surprise me if Tampa gave Melnyk a condo in Florida as a present.

 

[scelaton]

I wonder if the end game is now to piss off the community so badly that they reject him and the team. He then can put the team up for sale, make his millions, and blame the people of Ottawa.

It's the hockey equivalent of finally getting rid of the Senate-ors.

 

[cbcwpg]

I wonder if the end game is now to piss off the community so badly that they reject him and the team. He then can put the team up for sale, make his millions, and blame the people of Ottawa.

It's the hockey equivalent of finally getting rid of the Senate-ors.

I think it depends upon what you do with your trades to get injured players to keep your real costs down.

The Coyotes did this a few years back and ended up with a bunch of draft picks and are maybe now seeing this pay off positively with some good young players coming up. Going into next years draft the Sens have 11 picks ( the Jets have 5 ) . So if the Sens suck, win the lottery, and use all these draft picks to build a better team, and pay the salaries that come with that.... then it could just be short term pain for long term gain. But, if this is just a road map to run the team on the cheap forever... then yeah... get out the pitchforks.

 

[nobody imp0rtant]

I wonder if the end game is now to piss off the community so badly that they reject him and the team. He then can put the team up for sale, make his millions, and blame the people of Ottawa.

It's the hockey equivalent of finally getting rid of the Senate-ors.

I don't bother with the Ottawa board so I'm wondering...

Are there Quebec fans there circling overhead like vultures like we did on the Coyotes and Thrashers boards?

 

[wpgfishfan]

Sens got closer to cup than we did. They also have 9 yes 9 first or second round picks in the next 2 years so they have the ammo to turn this around

I like taking salaries for picks. Just wish they would have got a higher pick

Wish the Jets did this all those years when we were 10 mill under the cap

 

[Arthur Fonzarelli]

Sens got closer to cup than we did. They also have 9 yes 9 first or second round picks in the next 2 years so they have the ammo to turn this around

I like taking salaries for picks. Just wish they would have got a higher pick

Wish the Jets did this all those years when we were 10 mill under the cap

Nothing wrong with getting picks, but this deal failed to that.

When Tampa wins the Cup & Ottawa finishes dead last, the result will be moving up one space in the draft order.

Best case scenario it's a handful of spots.

A shame Colin White can't be offer sheeted. Love to see Melnyk deal with that.

 

[tbcwpg]

Nothing wrong with getting picks, but this deal failed to that.

When Tampa wins the Cup & Ottawa finishes dead last, the result will be moving up one space in the draft order.

Best case scenario it's a handful of spots.

A shame Colin White can't be offer sheeted. Love to see Melnyk deal with that.

The vultures will be circling Thomas Chabot next season for sure.

 

[Daximus]

The vultures will be circling Thomas Chabot next season for sure.

It could be that this is Melnyks way of saving money now to pay out later but I'll believe it when I see it.

 

[jamiebez]

I live in Ottawa, so I'll add some colour

I wonder if the end game is now to piss off the community so badly that they reject him and the team. He then can put the team up for sale, make his millions, and blame the people of Ottawa.

It's the hockey equivalent of finally getting rid of the Senate-ors.

The league and every single Senators fan would be thrilled if this was Melnyk's endgame. Apparently, the NHL has been leaning on him to take on a minority partner for years now to stabilize things financially, but he refuses.

It could be that this is Melnyks way of saving money now to pay out later but I'll believe it when I see it.

He gave a speech before a group of corporate sponsors (in Toronto, he refuses to speak in Ottawa at all anymore) where he promised to spend to the cap starting in 2020-21. He claimed that year would be the start of "5 years of unparalleled success".

Not one single Senators fan believes he will actually do this.

Good times in the nation's capital

 

[scelaton]

I live in Ottawa, so I'll add some colour


The league and every single Senators fan would be thrilled if this was Melnyk's endgame. Apparently, the NHL has been leaning on him to take on a minority partner for years now to stabilize things financially, but he refuses.



He gave a speech before a group of corporate sponsors (in Toronto, he refuses to speak in Ottawa at all anymore) where he promised to spend to the cap starting in 2020-21. He claimed that year would be the start of "5 years of unparalleled success".

Not one single Senators fan believes he will actually do this.

Good times in the nation's capital

Taking on a partner locally would be great. My concern for for the good folk in Ottawa was that he would play a game of chicken with the fans, daring them to boycott a franchise that he was deliberately sabotaging. He could then look to sell the team to owners in another city, out of narcissistic spite and, of course, to make considerable $$$.
I don't usually engage in this sort of speculation, so forgive me if this seems improbable.

 

[snowkiddin]

I think it shows Tampa has had 2 gms better then Chevy who do what needs to be done to get better. Why don't we trade a over priced player to have room for both laine and connor long term?

Not sure about this.

 

[Gabe Kupari]

Not sure about this.

Its likely cuz we dont have any overpriced Vets on LTIR.

You wanna get rid of Perreault or Kuli? Attach a 1st with it or high end prospect. This deal here and others are about teams hitting the cap floor.

So lets see... Keep em for now or trade a 1st with them.

 

[Mortimer Snerd]

Callahan will never play a game for Ottawa and is going on LTIR, covered by insurance.

Yes, apparently he is insured. Without that this deal makes no sense.

People tend to assume that every contract is insured. They are not always. That insurance is very expensive.

 

[Mortimer Snerd]

Can someone help me understand why Ottawa/Tampa even did this deal?

I thought that players on LTIR didn't count towards the cap, and that was why the Leafs traded for Clarkson because they could bury him in LTIR and free up cap space? So why did TB even need to do this and how does it help Ottawa reach the cap floor?

LTIR counts against the cap until you actually go over. Also, it can't be used to cover bonus payments.

 

[GumbyCan2]

You also need ownership willing to give up a big chunk of their operating profit to help facilitate the deal. Callan's salary is covered by insurance and he there is no chance he plays due to a degenerate back problem. So Melnyk has cap space taken up by a salary he doesn't have to pay. TB on the other hand has to pick up a $3 M base salary for a 6th goalie in their organization that they have absolutely no use for. There is also a cap implication of $1.325 to bury the salary. And none of the circumstances fit the Jets situation as they don't have a player with a career ending injury in which to sell for cap space. Not sure how we somehow get upset at Chevy over this when none of the conditions apply to the Jets.

Couldn't Kulikov qualify?? His back issues have kept him out for large periods over 2 years? Oh yes, the league won't allow a "gimme" to the Jets ( like other teams can!)

 

[cbcwpg]

Couldn't Kulikov qualify?? His back issues have kept him out for large periods over 2 years? Oh yes, the league won't allow a "gimme" to the Jets ( like other teams can!)

How is this a gimme not being given? The LTIR applies to players that will never play again. Kulikov may be hurt from time to time, but he's still playing. You want a gimme? Then the Jets can buy him out or trade him, like any other team.

Have to laugh when people think Chevy can just wave a magic wand and get rid of players, to the Jets benefit no less, that no one would want. Sure, maybe it's even Chevy's fault he has some dead weight, but every team has some dead weight they would like to get rid of.

 

[MardyBum]

Melnyk is pathetically cheap and has no issues apparently helping out other teams in their division if it saves him a dollar.

If he has to trade a player for assets in conference though? God forbid.