Confirmed with Link: Datsyuk Leaving Wings

[Bench]

Actually the NHL will care if this happens, this is a huge development. Z or another recapture player retires to play in a different league and their cap hit disappears? It'll be the new way to sign old players long term and not worry about 35+, it would great a massive loophole.

It's only a loophole if the team saves salary cap by the contract being extended beyond the intended years of play. That ability has been shut down due to contracts being forced to adhere to more standardized averages that don't deviate too greatly.

How much cap did the Wings save with this amazing loophole?
Datsyuk's deal was $22.5 million over 3 years. He'll collect $17 million of that leaving now. Average cap hit $8.5 if he did a 2 year deal instead of 3, which was $7.5. Wings saved 1 million in cap per year.

This incredible million dollar loophole requires a star veteran player who can command over $7 million and then flee to a new league. At lower salaries the savings are even less. It's such a small benefit to a very specific problem.

 

[PuckDynasty]

Just leave already. Enough of the excuses and the drama. It's not his injury, it's not his daughter. He wants to play hockey in Russia. He was great while he was here, but he clearly does not want to be here. There's the door.

 

[sarcastro]

This smells a lot like the agent has worked out a contract in principle and they're just waiting to finalize it. Pavel hasn't talked to anyone, and no contact has been signed. So the agent isn't lying.

He gone.

 

[TheRatPoisoner]

Actually the NHL will care if this happens, this is a huge development. Z or another recapture player retires to play in a different league and their cap hit disappears? It'll be the new way to sign old players long term and not worry about 35+, it would great a massive loophole.

It's a slight oversight. Perhaps it's addressed in the new CBA, sure. I don't think it's anything too major, however. If every cap ceiling team did the same thing, you'd reach a saturation point pretty quick -- there's only so many capfloor teams in the league, after all.

Either way, I don't think the league will penalize the Wings after the fact if they manage to move Datsyuk's caphit, and that's all that matters to me.

This smells a lot like the agent has worked out a contract in principle and they're just waiting to finalize it. Pavel hasn't talked to anyone, and no contact has been signed. So the agent isn't lying.

He gone.

Yeah, nothing technically official, but pretty much all said and done at this point. I believe it.

We all pretty much knew he was gone 2 months ago though anyways -- this news isn't like it's a bombshell or anything.

 

[Reddwit]

It's only a loophole if the team saves salary cap by the contract being extended beyond the intended years of play. That ability has been shut down due to contracts being forced to adhere to more standardized averages that don't deviate too greatly.

How much cap did the Wings save with this amazing loophole?
Datsyuk's deal was $22.5 million over 3 years. He'll collect $17 million of that leaving now. Average cap hit $8.5 if he did a 2 year deal instead of 3, which was $7.5. Wings saved 1 million in cap per year.

This incredible million dollar loophole requires a star veteran player who can command over $7 million and then flee to a new league. At lower salaries the savings are even less. It's such a small benefit to a very specific problem.

First of all, an average cap hit of $8.5M under a lesser cap is substantial. People would've rioted seeing a 35 year old Datsyuk get Crosby money. Second, $1M when the team is smack up against the cap is huge. Third, who cares how much Datsyuk ends up saving the Wings in cap? The second you allow the Wings to do this, any team can do this. The savings would only be greater given that medium term deals aren't subject to recapture. 35 years old? Oh, here's a 4 year deal with a cap hit of $4M because we've given you $8M when you're 35.

Lastly, there is literally no way this can be applied. Datsyuk can't just play in another league. He either has to retire from the NHL - which invokes the 35+ clause - or he's suspended, in which case his contract is still in place, he just doesn't get paid, and the cap hit still applies.

 

[edmundbenz]

I think the CBA should be negated since Dats plays for another league. If he just retires from hockey the CBA will be in effect, but not honoring the contract and playing for another league when he is still under contract puts disadvantage to the team. This would happen in the future and the league should act on this.

 

[Bench]

First of all, an average cap hit of $8.5M under a lesser cap is substantial. People would've rioted seeing a 35 year old Datsyuk get Crosby money. Second, $1M when the team is smack up against the cap is huge. Third, who cares how much Datsyuk ends up saving the Wings in cap? The second you allow the Wings to do this, any team can do this. The savings would only be greater given that medium term deals aren't subject to recapture. 35 years old? Oh, here's a 4 year deal with a cap hit of $4M because we've given you $8M when you're 35.

Lastly, there is literally no way this can be applied. Datsyuk can't just play in another league. He either has to retire from the NHL - which invokes the 35+ clause - or he's suspended, in which case his contract is still in place, he just doesn't get paid, and the cap hit still applies.

Oh, I get it. I also think this comes up so rarely and the cap significance so minimum that it's much ado about nothing.

In your example you've been forced to give 4 years to and old player that him and the team conspire to end early. I don't think that happens. That was the old loophole and it only works when the massive drop in pay is in the 40s after a 10 year deal. But sure, the NHL could stamp it out.

Just like the held the Devil's and King's on the hook, right? Those were small deals, right? Oh wait...

 

[SlavaKozlov]

I think the cap hit issue and him playing in Russia are two separate issues. The Wings are stuck with the cap hit because he is a 35+ contact and he is (probably) retiring early. Holland knew that risk when he gave Datsyuk the 3 year contract.

Datsyuk is allowed to retire from the NHL and play in Russia. Kovalchuk did that, and the Devils are stuck with a cap recapture penalty because he retired early.

There's nothing the Wings can really do, except possibly trading his dead contact before he officially retries.

 

[SlavaKozlov]

I think the CBA should be negated since Dats plays for another league. If he just retires from hockey the CBA will be in effect, but not honoring the contract and playing for another league when he is still under contract puts disadvantage to the team. This would happen in the future and the league should act on this.

The CBA is the agreement between the NHL and the NHLPA. It says if a 35+ player retires early, the team gets stuck with the full cap hit of the remaining contact.

What Datsyuk does in his retirement is up to him.

 

[Lazlo Hollyfeld]

This smells a lot like the agent has worked out a contract in principle and they're just waiting to finalize it. Pavel hasn't talked to anyone, and no contact has been signed. So the agent isn't lying.

He gone.

Pretty much.

And I'm sure it's also the agent trying not to upset Holland. There shouldn't be any announcement of a contract until Datsyuk tells Kenny himself that he's leaving to play in Russia.

 

[smtevo]

At this point I am very very glad he is leaving. If he wants to be a total diva then so be it. He looks absolutely terrible in the World Championship anyways, I don't want that infectious behavior on the wings.

 

[Boomhower]

Everyone will care, especially the league. The Wings get out from underneath a 35+ contract without penalty and no one will care? The league sets a precedent that a team can get out of a 35+ contract if their guy retires to Europe to play and no one will care? Of course they will. That totally eviscerates the intent of the rule.
!

The Wings aren't getting out from anything. The Wings WANT him to honor his contract. The Wings want him back. This is a player fleeing the league while on a valid contract. Not a team dumping an unwanted player/contract. There is zero circumvention here and everyone knows it.

Datsyuk is allowed to retire from the NHL and play in Russia. Kovalchuk did that, and the Devils are stuck with a cap recapture penalty because he retired early.

There's nothing the Wings can really do, except possibly trading his dead contact before he officially retries.

This is not true. Kovalchuk's contract was voided voluntary by the Devils. He did not retire. The Devils and Kovalchuk came to a mutual agreement to void the contract. Completely different situation as there is nothing mutual about this and Detroit has not agreed to void this contract.

http://www.thehockeynews.com/blog/report-nhl-khl-close-to-four-year-transfer-agreement/

From Article;
Currently, players in both leagues (KHL and NHL) must have their contract voided to leave their respective teams to head across the pond.

 

[lidstromiscool]

At this point I am very very glad he is leaving. If he wants to be a total diva then so be it. He looks absolutely terrible in the World Championship anyways, I don't want that infectious behavior on the wings.

Datsyuk is the farthest thing from a diva and one of the classiest players in the league. He’s the type of behavior you want on the Wings

 

[TheOtherOne]

So does anyone know why cap hit isn't just directly the salary for a given year? Why this weird averaging businesses that opens up so many loopholes?

 

[Bench]

So does anyone know why cap hit isn't just directly the salary for a given year? Why this weird averaging businesses that opens up so many loopholes?

It's not as dramatic as it used to be. It's pretty timid now by comparison. Consider Zetterberg has a cap hit of 6.01 million per year but over the final 3 years of his contract the total salary is only $5.3 million. Those are the "retirement years" you used to be able to build into deals.

Why it's still around at all? It allows you to pay someone high actual salary upfront, during their expected best years and trail it off slightly during expected down years. For players, they get their cash sooner. They like that part. If there's injury and/or unexpected retirement, or whatever, they've got their money upfront. Then there's the possibility of a buyout, which does pay them, but not the full contract. By getting money sooner, they are protected against that. For general managers, they like that their prime player can have a slightly reduced cap hit during those prime years so they can fit other players around their stars.

Some contracts go the other way, though. Nyquist, for example, is going to earn above his salary cap hit the final two years of his deal. More expected of older players, Abdelkader's salary goes down every year. Kronwall only makes $1.75 million the final year of his deal.

So typically it's a way for managers to massage cap hits a little. Nyquist's biggest cash infusion is yet to come during his expected "prime" years. Abdelkader is getting his cash sooner (He makes over 50% of his money in the first 3 years of the 7 year deal).

I think it usually favors the players who can get their market value in actual salary sooner rather than later.

 

[Bench]

This is not true. Kovalchuk's contract was voided voluntary by the Devils. He did not retire. The Devils and Kovalchuk came to a mutual agreement to void the contract. Completely different situation as there is nothing mutual about this and Detroit has not agreed to void this contract.

Why wouldn't they both void the deal, though? I think the only holdup is that Datsyuk has been toying us by saying nothing is 100%.

Just for comparison's sake, I think people forget Kovalchuk had 12 years left on his deal. Money left? $77 million remaining. What are the Devil's on the hook for? $250K each year. That's it. His $6.66 million dollar cap hit turned into less than half the league minimum.

So you can see why, as a Wings fan watching a Russian go to the KHL, I can feel like maybe the league can't hold it's foot down on the Wings for this cap hit when they erased a contract 12 times as long with 14 times the salary remaining.

 

[SlavaKozlov]

The Wings aren't getting out from anything. The Wings WANT him to honor his contract. The Wings want him back. This is a player fleeing the league while on a valid contract. Not a team dumping an unwanted player/contract. There is zero circumvention here and everyone knows it.



This is not true. Kovalchuk's contract was voided voluntary by the Devils. He did not retire. The Devils and Kovalchuk came to a mutual agreement to void the contract. Completely different situation as there is nothing mutual about this and Detroit has not agreed to void this contract.

http://www.thehockeynews.com/blog/report-nhl-khl-close-to-four-year-transfer-agreement/

https://www.nhl.com/news/devils-ilya-kovalchuk-announces-retirement-from-nhl/c-677712

Kovalchuk did retire and file voluntary retirement paperwork to get his contact voided.

If Datsyuk voluntarily retires from the NHL, there is no reason for the Red Wings to try and stop him. It sucks that it falls under the 35+ rule and the Wings get stuck with a hefty cap penalty, but that was the risk Holland took signing a 35 year old Datsyuk who wanted to go back to Russia years ago to a 3 year contract.

Datsyuk IS allowed to retire from the NHL whenever he wants. He just has to agree that he doesn't get paid for the remaining term of his contact.

 

[HockeyinHD]

If the signing bonus came in year 3 and not year 1, Datsyuk's playing year 3. He got his 17 mil for playing two years, and now he's vacating the last year at 5.5 to go make >5.5 playing in Russia.

It's a completely mercenary, going for the $'s move he's slapped a thin veneer of 'but it's for muh kids' over.

Hey, it's his money. I'm not going to tell a guy he can't make the best financial moves for himself. I am, however, going to think less of a guy (as a hockey player and teammate) when they do that to the extreme expense of their previous team, when said team has been very, very fair to him throughout his whole career.

 

[HockeyinHD]

but that was the risk Holland took signing a 35 year old Datsyuk who wanted to go back to Russia years ago to a 3 year contract.

If that were actually true at the time Datsyuk would have gone with a constant pay contract instead of getting it frontloaded. He took the money up front, signed the 3 year, and then is now bailing on the final, lowest paying year so he can go make more in Russia.

Blaming Holland for agreeing to a deal Datsyuk also agreed to which Datsyuk then voluntarily and without any instigation from the organization bails out of just means people are going to blame Holland for every contract that doesn't work out.

Had Holland held the line with Datsyuk two years ago and he walked then, people would have crushed Holland for that, too.

 

[SlavaKozlov]

If that were actually true at the time Datsyuk would have gone with a constant pay contract instead of getting it frontloaded. He took the money up front, signed the 3 year, and then is now bailing on the final, lowest paying year so he can go make more in Russia.

Blaming Holland for agreeing to a deal Datsyuk also agreed to which Datsyuk then voluntarily and without any instigation from the organization bails out of just means people are going to blame Holland for every contract that doesn't work out.

Had Holland held the line with Datsyuk two years ago and he walked then, people would have crushed Holland for that, too.

Yes, it's true that Datsyuk is walking out on his contact. But he is allowed to retire. Brian Rafalski also walked out on the last year of his contact with millions of dollars on the table. He also had knee problems and didn't immediately keep playing, but nobody gave him crap for retiring.

Signing any 35+ player to a multi year contract carries the risk of this cap penalty. The Wings anticipated Datsyuk would honor all 3 years, but things change.

The situation does suck, but there is nothing that can be done about it. If Datsyuk retires, he is done with the NHL. Holland can't fight to keep him here or block him from going to the KHL.

 

[Boomhower]

https://www.nhl.com/news/devils-ilya-kovalchuk-announces-retirement-from-nhl/c-677712

Kovalchuk did retire and file voluntary retirement paperwork to get his contact voided.

If Datsyuk voluntarily retires from the NHL, there is no reason for the Red Wings to try and stop him. It sucks that it falls under the 35+ rule and the Wings get stuck with a hefty cap penalty, but that was the risk Holland took signing a 35 year old Datsyuk who wanted to go back to Russia years ago to a 3 year contract.

Datsyuk IS allowed to retire from the NHL whenever he wants. He just has to agree that he doesn't get paid for the remaining term of his contact.

He can retire. Yes.
He is not allowed to play in the KHL unless Detroit voids the remainder of his contract..

from your article;
Lamoriello said Kovalchuk, 30, signed his voluntary retirement papers, and the team has voided the remaining 12 years of the contract with the player. The voiding of the remainder of the deal opens the door for Kovalchuk to play in the Kontinental Hockey League this season.

There is no motivation for Detroit to void this contract.
NJD voided because Kovalchuk was under 35 and they got rid of his cap hit (almost entirely).
Because of the over 35 rule... Detroit will get stuck with entire cap hit no matter what.
Like I said different situation. Unprecedented.
Another fake retirement. But this time the team has no motivation to go along with it and void the contract so he can continue playing.

 

[Boomhower]

The situation does suck, but there is nothing that can be done about it. If Datsyuk retires, he is done with the NHL. Holland can't fight to keep him here or block him from going to the KHL.

Of course he can.
Both leagues are governed by the IIHF.

There is no transfer agreement between the KHL and NHL.
So if a player is under contract (non voided), he cannot switch between these two leagues.

Certain leagues do have a transfer agreement. So when Laine for example leaves SM Liiga for NHL. NHL team must pay a flat rate to his club. KHL determined the compensation was not adequate and refused to enter a transfer agreement. Players cannot transfer between these leagues unless they are between contracts.

http://www.sportsnet.ca/hockey/nhl/nhl-fails-to-reach-new-transfer-deal-with-khl/

 

[sarcastro]

If the team suspends him and lets him play in Russia, the year doesn't burn off his contract. The piper will have to be paid sooner or later.

 

[Boomhower]

If the team suspends him and lets him play in Russia, the year doesn't burn off his contract. The piper will have to be paid sooner or later.

Refuse to allow him to play in Russia. Make him actually retire the entire year.
Maybe he decides to honor that contract after all, instead of giving up hockey (and a paycheck) for an entire year.

 

[Heaton]

Refuse to allow him to play in Russia. Make him actually retire the entire year.
Maybe he decides to honor that contract after all, instead of giving up hockey (and a paycheck) for an entire year.

They can suspend him, but how can they refuse to allow him? Ovechkin has a contract and has said he'll play for Russia in the Olympics if the NHL doesn't go.