TSN: At least 17 NHL teams have reduced pay amid COVID-19 crunch

[deeshamrock]

Seravalli: At least 17 NHL teams have reduced pay amid COVID-19 crunch - TSN.ca

There is a growing list of NHL organizations who are adjusting payrolls due to COV19. Each one making their own adjustments, some to cutting payroll of staff and coaching, others furloughing employess. But as the winter creeps closer, the ripple effect will get worse.

It is difficult to garner a complete view of the NHL’s financial picture at both the club and/or league level. Some teams, like the Carolina Hurricanes, have not made any pay cuts to hockey operations staff but have furloughed employees on the business side of the operation. That may also be true with other clubs around the league.

What is clear is that there is more carnage to come. Two Canadian clubs – Calgary and Winnipeg – just cut employee pay, effective Sept. 1. Other teams are considering outright furloughing employees. There is a trickle-down effect that will eventually drip to players and roster construction in free agency and beyond.

The Pens, Yotes and Sabres are lowering their salary cap to the 70M range which is a path I suspect other teams will follow.

There is a list at the ned with the NHL teams and what adjustments they've made

It will be a very interesting off season, with the number of high end players available, but few teams that can afford them. Trades will be interesting as well.

Click to read more...

 

[SFKingshomer]

Seravalli: At least 17 NHL teams have reduced pay amid COVID-19 crunch - TSN.ca

There is a growing list of NHL organizations who are adjusting payrolls due to COV19. Each one making their own adjustments, some to cutting payroll of staff and coaching, others furloughing employess. But as the winter creeps closer, the ripple effect will get worse.

It is difficult to garner a complete view of the NHL’s financial picture at both the club and/or league level. Some teams, like the Carolina Hurricanes, have not made any pay cuts to hockey operations staff but have furloughed employees on the business side of the operation. That may also be true with other clubs around the league.

What is clear is that there is more carnage to come. Two Canadian clubs – Calgary and Winnipeg – just cut employee pay, effective Sept. 1. Other teams are considering outright furloughing employees. There is a trickle-down effect that will eventually drip to players and roster construction in free agency and beyond.

The Pens, Yotes and Sabres are lowering their salary cap to the 70M range which is a path I suspect other teams will follow.

There is a list at the ned with the NHL teams and what adjustments they've made

It will be a very interesting off season, with the number of high end players available, but few teams that can afford them. Trades will be interesting as well.

Wow, any chance the players will have to take a pay cut? Maybe they allow a restructuring if the player would prefer to stay rather than uproot his family?

 

[Stimpythecat]

I don't expect the kings to take on any cap dumps. RFA and UFAs are going to find a limited market.

It's the silver lining on the Kings rebuild. Actual dollars out is just under $42 million for 17 players right now. The kings are not in as bad of shape as most of the league.

side note, capfriendly just switched to the 2020-2021 season.

 

[Token]

Wow, any chance the players will have to take a pay cut? Maybe they allow a restructuring if the player would prefer to stay rather than uproot his family?

They already took a pay cut when they ratified the CBA extension. 20% escrow.

There is also the salary deferral also in the 20% range if memory serves.

Either way, contracts are just guidelines that get modified by the 50/50 revenue split.

 

[fsanford]

I don't expect the kings to take on any cap dumps. RFA and UFAs are going to find a limited market.

It's the silver lining on the Kings rebuild. Actual dollars out is just under $42 million for 17 players right now. The kings are not in as bad of shape as most of the league.

side note, capfriendly just switched to the 2020-2021 season.

my god the Coyotes are just a screwed up organization.

 

[Sparky206]

my god the Coyotes are just a screwed up organization.

Not as bad as Tampa, 15 players signed, 3 defenceman signed and 5.6mil in cap space left and all of the roster has NTC besides Brayden Point

 

[Stimpythecat]

That's what tampa gets for using their no state tax status to lower the cap hits. Players don't want to leave and demand NTCs in exchange.

 

[Statto]

Not as bad as Tampa, 15 players signed, 3 defenceman signed and 5.6mil in cap space left and all of the roster has NTC besides Brayden Point

After the play-offs he just had they must be seriously worried about being able to resign him. They will also need to sign Cernak, Segachev and both those guys will be due raises along with Point. They will either have to trade guys they want to keep or even encourage offer sheets for them... Players will be more likely to waive their NTC though as it now goes with them, so at least they’d retain control at their new team. However, it’s a mess no matter how you look at it.

 

[Statto]

Looking at Cap Friendly really highlights just how young/inexperienced the Roster in going to be both in LA and Ontario. There’s loads of flexibility and we will have plenty of spots filled by waiver exempt players on the NHL roster. It will give them lots of options until players are ready to graduate to be full-time NHL players, at which point it would be ok to risk losing somebody. Whilst I think most of us know this, seeing it in writing really brought it home.

 

[jfont]

Not as bad as Tampa, 15 players signed, 3 defenceman signed and 5.6mil in cap space left and all of the roster has NTC besides Brayden Point

I think because of BP, they can let go of Stamkos. It will solve a lot of their cap problems.

 

[Ziggy Stardust]

I think because of BP, they can let go of Stamkos. It will solve a lot of their cap problems.

Interestingly, Lisa Dillman brings up Stamkos as a potential trade option for the off-season, with the added disclaimer that it would be complicated and risky.

 

[Bandit]

I'm not sure I'd trade for Stamkos at any price, the guy can't stay on the ice.

 

[Sparky206]

He has a NTC on a team friendly deal. The players are already loosing a chunk of their contract, hes not going to move somewhere where he has to pay tax on his income aswell.

They all get the NTC to sign at a lower cap hit, theres a 0% chance any of them waive it.

 

[Ray Martyniuk]

Maybe Detroit trades for Stamkos...if they deem him healthy enough

 

[kilowatt]

If Stamkos is on the move, the Rangers, Canadiens, and Wild should be all over it. Tampa is clearly doing just fine without him these playoffs. Having your goalie as your highest-paid player will always feel like a mistake though. Vasilevskiy is making $9.5 million for eight years. But yeah, Tampa is in trouble. They'll likely need to give away Stamkos and Gourde or Johnson for cheap to be able to re-sign Sergachev and Cernak.

 

[Stimpythecat]

Different Times Ahead for NHL Clubs? – “Good Players are in Play” - Full Press Coverage

“I’m going to caution everybody including Mark Borowiecki’s agent, these are way different times in the National Hockey League, and you’re just starting to see just a little ripple in the water. This is going to be a very different time financially for the league, and for a lot of member clubs in the league. I’m just telling you. The stories haven’t broken yet, but this is going to be a way different time for free agents, be a way different time for established players. You’re going to see some major cost-cutting around the National Hockey League, major, major cost-cutting. There are people writing stories now about this team laying off these people. You’re going to see a lot more. It’s going to trickle down to player’s salaries. This is a very different time in this league. It’s not getting enough exposure right now. I completely understand because of the playoffs. No one really wants to talk about it.

[emphasis added]

 

[Raccoon Jesus]

Obviously it doesn't matter if they win, but all those NTCs on TBL are finally coming to roost. We'll see if they get the same retroactive beatings that the Hawks and Kings (and to a lesser degree for obvious reasons Sharks) mgmt get.

 

[Sparky206]

Ain't no one on a Tampa NMC giving that up. They are already going to see their salary down by 20-50% from escrow, theres no chance that they up and move their family to loose another 30% of their team friendly contract to tax somewhere else.

Like if you were Stamkos, your a 10million dollar player, you take a 15% pay cut on a team friendly deal to 8.5Million as its still more take home salary than you would make on another team. Covid hits and your 8.5million becomes 5.5 million due to escrow. Then your team comes to you and says we dont want you any more, go play here once you waive your NMC and your 5.5 million becomes 4 million after taxes.

Suddenly a 10 Million dollar player ends up a 4 million dollar paid player, theres no chance the players waive a NMC at this time.

 

[jfont]

Ain't no one on a Tampa NMC giving that up. They are already going to see their salary down by 20-50% from escrow, theres no chance that they up and move their family to loose another 30% of their team friendly contract to tax somewhere else.

Like if you were Stamkos, your a 10million dollar player, you take a 15% pay cut on a team friendly deal to 8.5Million as its still more take home salary than you would make on another team. Covid hits and your 8.5million becomes 5.5 million due to escrow. Then your team comes to you and says we dont want you any more, go play here once you waive your NMC and your 5.5 million becomes 4 million after taxes.

Suddenly a 10 Million dollar player ends up a 4 million dollar paid player, theres no chance the players waive a NMC at this time.

So you're saying that they may have to get rid of their RFA to be younger players.... Interesting.

Do we like any of thier RFA's?

hehehe

 

[Sparky206]

So you're saying that they may have to get rid of their RFA to be younger players.... Interesting.

Do we like any of thier RFA's?

hehehe

I think there's a lhd rfa that might be a nice fit

 

[jfont]

I think there's a lhd rfa that might be a nice fit

Oh wow!
Who could that be?

 

[KINGS17]

Wow, any chance the players will have to take a pay cut? Maybe they allow a restructuring if the player would prefer to stay rather than uproot his family?

I think the NHL owners and the NHLPA already reached an agreement on the maximum amount of escrow (20% I think) which can be docked from the players' pay as part of a CBA extension prior to resuming play in the bubble. The owners are going to have quite a bit of short-term pay for at least a couple of years. I wouldn't expect many flashy UFA contracts in the next two or three seasons.

There may be a possibility a team like the Kings might try to poach a decent younger RFA from a cap-strapped team.

 

[KINGS17]

Ain't no one on a Tampa NMC giving that up. They are already going to see their salary down by 20-50% from escrow, theres no chance that they up and move their family to loose another 30% of their team friendly contract to tax somewhere else.

Like if you were Stamkos, your a 10million dollar player, you take a 15% pay cut on a team friendly deal to 8.5Million as its still more take home salary than you would make on another team. Covid hits and your 8.5million becomes 5.5 million due to escrow. Then your team comes to you and says we dont want you any more, go play here once you waive your NMC and your 5.5 million becomes 4 million after taxes.

Suddenly a 10 Million dollar player ends up a 4 million dollar paid player, theres no chance the players waive a NMC at this time.

This is a very good point. Likewise, I don't think you will see RFAs on a good Tampa team agree to a deal with a team in California if it isn't at least 50% more than what Tampa Bay offers.

 

[Sparky206]

This is a very good point. Likewise, I don't think you will see RFAs on a good Tampa team agree to a deal with a team in California if it isn't at least 50% more than what Tampa Bay offers.

That's tampas problem but, they don't have any cap space to make an offer and Braden point is the only guy they can trade away to get it

 

[Token]

That's tampas problem but, they don't have any cap space to make an offer and Braden point is the only guy they can trade away to get it

Technically, Point and Vasilevskiy don’t have trade protection and Killorn is a 16-team NTC.

Tough bind.