News Article: Cap Crunch could force Hawks+Bruins to move players

[knorthern knight]

It appears that due to the falling CDN$ and other factors, the salary cap might go up very little, if at all, for the 2015-2016 season

http://www.thehockeynews.com/blog/r...al-days-for-blackhawks-seabrook-bruins-chara/

The New York Post’s Larry Brooks reports there’s a good chance the NHL salary cap won’t increase for 2015-16. Brooks cites the projected decline in the Canadian dollar and the potential unwillingness of the NHLPA (for escrow reasons) to exercise a five percent escalator for ’15-’16. He also cites front-office sources claiming the struggling Canadian dollar has already affected contract extension talks in at least three cases.

The main teams in salary-cap trouble would be the Blackhawks and Bruins. There's a thread about this on the business board http://hfboards.mandatory.com/showthread.php?t=1749515 but I want to concentrate on what this means for the Jets. According to CapGeek Winnipeg looks to have plenty of cap space, even with a "no-grow" cap. Is there anybody interesting for us on the Hawks+Bruins? I could see trades, or possibly going after UFAs.

There seems to be "an understanding" that teams don't go after RFAs. Are there any young RFAs we'd be interested in? RFA offer sheets with cap hits up to $1,110,249 per year require no compensation. Over $1,110,249 to $1,682,194 per year require a 3rd rounder.

#WhatWillChevyDo

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[CorgisPer60]

I'm kind of worried about the part where it says the flagging dollar is affecting contract extension talks in 3 cities. I know that Ottawa is likely to be one; who are the other two?


Edit: Oh, cases. I read that as 'cities'. Still, it can affect a franchise. Canadian players still get paid in USD, so I imagine that Melnyk is still feeling the pinch.

 

[Jesus Christ Horburn]

Versteeg and Bickell are guys I wouldn't mind taking if the Hawks added a sweetener (picks or prospects).

 

[KingBogo]

Versteeg and Bickell are guys I wouldn't mind taking if the Hawks added a sweetener (picks or prospects).

There will be a good chance they move them, but they don't have to yet. Their cap hell doesn't really start until the 2015/16 season when Toews and Kane's new contracts kick in. Why move a known playoff performer like Bickell early in the season and add picks and prospects when you have the off season to do? A team won't be able to get Bickell and sweeteners for nothing. He would be a huge upgrade on our bottom 6.

 

[Whileee]

Teams with cap problems are going to try to trade players that don't play up to their cap hit. The only way I would want the Jets to take on a player like that is if: a) it doesn't interfere with their own signings down the road and; b) the other team adds something good to have the Jets take an inefficient contract off their hands. Otherwise, the Jets should stay away.

 

[Romang67]

Well, trading with those two teams has worked out well in the past.

 

[cheswick]

I'm kind of worried about the part where it says the flagging dollar is affecting contract extension talks in 3 cities. I know that Ottawa is likely to be one; who are the other two?


Edit: Oh, cases. I read that as 'cities'. Still, it can affect a franchise. Canadian players still get paid in USD, so I imagine that Melnyk is still feeling the pinch.

The implication isn't that it's to do with Canadian teams. Its teams that are up against the cap. The falling Canadian dollar is putting uncertainty on next years cap, so the teams are holding off on extensions until they have a better idea on where the cap will fall.

Canadian clubs generally deal with foreign exchange futures so fluctuations in the CDN$ won't affect them short term.


But yeah, the Hawks are in big trouble. They ahve to shed major salary due to the extensions to Toews and Kane comign in next season.

 

[ps241]

The implication isn't that it's to do with Canadian teams. Its teams that are up against the cap. The falling Canadian dollar is putting uncertainty on next years cap, so the teams are holding off on extensions until they have a better idea on where the cap will fall.

Canadian clubs generally deal with foreign exchange futures so fluctuations in the CDN$ won't affect them short term.


But yeah, the Hawks are in big trouble. They ahve to shed major salary due to the extensions to Toews and Kane comign in next season.

They have two players moving from $6.3 million AAV to $10.5 million AAV which means without adding talent they increase spending by $8.5 against the CAP and they are currently up against the cap. Then they have RFA's Saad and Kruger, UFA's Richards, Oduya, Rozsival to deal with. They are going to have to dump some talented players pending 2015-16 Cap?

 

[pondnorth]

Aren`t the Kings presently up against the cap and thinking out loud about moving Mike Richards.

 

[allan5oh]

Problem is we may not be in a position to take advantage like in the past. We have an internal cap and right now that cap is shrinking due to the loonies value.

 

[cheswick]

Problem is we may not be in a position to take advantage like in the past. We have an internal cap and right now that cap is shrinking due to the loonies value.

The Jets have locked in $USD rates based on futures contracts. The change in $CDN won't have an effect on their spending in the short term.

 

[Evil Little]

The Jets have locked in $USD rates based on futures contracts. The change in $CDN won't have an effect on their spending in the short term.

If I understand you correctly: a bank has given them a fixed exchange rate for the term of their contracts?

That wouldn't apply to contracts they've yet to sign and presumably contracts that they acquire through trade, though, correct?

 

[Puckatron 3000]

I wonder if this will help in the Frolik negotiation? The cap could have a serious impact on his worth on the market. As teams are trying to dump salary, purse strings will be tighened and the supply of non-resigned FAs will increase.

 

[Whileee]

I wonder if this will help in the Frolik negotiation? The cap could have a serious impact on his worth on the market. As teams are trying to dump salary, purse strings will be tighened and the supply of non-resigned FAs will increase.

Good point. The Jets got some good deals with some of their core players when there was the uncertainty heading into the lock-out. If the cap is stagnant, the free agent market will favour buyers over sellers.

 

[Derfel*]

I'm sorry - I can't help but mention it - but I keep reading the thread title as "Cap'n Crunch". I'm totally cereal.

In any case - I can't imagine the diving dollar looks good for any of the Canadian teams in the long run, even if they have currency stability built into contracts now.

I've always wondered how a team like the Hawks stay under the cap with the talent they seem to have brought in. I could see a guy like Sharp being moved to move money off the cap, though. I'd like to see him here!

 

[cheswick]

If I understand you correctly: a bank has given them a fixed exchange rate for the term of their contracts?

That wouldn't apply to contracts they've yet to sign and presumably contracts that they acquire through trade, though, correct?

I don't think that's exactly how it would operate. I think the Jets would have deals in place where they will receive $XUSD at a specified date at the agreed upon exchange rate. It wouldn't be specifically tied to any given players contract. But within their budget they would generally know what $USD expenditures they are likely going to make for the next year or more. They likely have various such exchange deals in place over a period in time. So any short term variation of the exchange rate doesn't affect their business practices as they already know how much the USD$ will be costing them likely for years into the future. So as a general trend the value of the CDN$ obviously affects them but it isn't as volitile as a daily or monthly variation in the $ since they budget the cost of the $USD to them well in advance.

 

[ps241]

I don't think that's exactly how it would operate. I think the Jets would have deals in place where they will receive $XUSD at a specified date at the agreed upon exchange rate. It wouldn't be specifically tied to any given players contract. But within their budget they would generally know what $USD expenditures they are likely going to make for the next year or more. They likely have various such exchange deals in place over a period in time. So any short term variation of the exchange rate doesn't affect their business practices as they already know how much the USD$ will be costing them likely for years into the future. So as a general trend the value of the CDN$ obviously affects them but it isn't as volitile as a daily or monthly variation in the $ since they budget the cost of the $USD to them well in advance.

I believe this issue may be addressed in the CBA as well although I may be wrong?

 

[YWGinYYZ]

Every time I read this thread title, I read "Cap'n Crunch"

And just like the cereal, it would be very sweet if we can position ourselves to take advantage of some teams. This was one area that I credit Dudley on pursuing to a T.

 

[Gabe Kupari]

I know it's highly unlikely but i think Brandon Saad would look good in a Jets jersey.

 

[almostawake]

The article craps the bed with respect to the Bruins cap situation. They have 56M tied up including Marc Savard who will be on LTIR. Even if the cap stays the same they'll have 16M to re-sign Smith, Hamilton, Krug and Soderberg. Probably not enough to get them all under the cap, but there is a much higher probability they're going to let Soderberg walk than start trading legit assets at a cut rate.

It is really pathetic that The Hockey News will post stuff based purely on CapGeek numbers and not even pay attention to how CapGeek is calculating them. Lazy 'journalism'.

 

[macmaroon]

Every time I read this thread title, I read "Cap'n Crunch"

I have to agree as well. I guess I must be hungry...

...and it is part of this complete breakfast!

 

[Mortimer Snerd]

I'm sorry - I can't help but mention it - but I keep reading the thread title as "Cap'n Crunch". I'm totally cereal.

In any case - I can't imagine the diving dollar looks good for any of the Canadian teams in the long run, even if they have currency stability built into contracts now.

I've always wondered how a team like the Hawks stay under the cap with the talent they seem to have brought in. I could see a guy like Sharp being moved to move money off the cap, though. I'd like to see him here!

It isn't a good thing for any team in the long run. But currencies go down and then they go up. If any one out there knows which way it is going to go 'in the long run' please let me know (privately please, we don't want to start a stampede).

 

[Derfel*]

It isn't a good thing for any team in the long run. But currencies go down and then they go up. If any one out there knows which way it is going to go 'in the long run' please let me know (privately please, we don't want to start a stampede).

It'll be worse for the teams north of the border for sure.

 

[BigZ65]

Isn't there an equalization formula for the Canadian teams re the US/CDN dollar?

I suppose if it gets bad enough, teams like us and Ottawa will qualify for revenue sharing anyways.

 

[ps241]

Isn't there an equalization formula for the Canadian teams re the US/CDN dollar?

I suppose if it gets bad enough, teams like us and Ottawa will qualify for revenue sharing anyways.

I believe Chipman had eluded to this in the past but I don't recall when and where?