What is the benefit for teams signing staggered contracts?

Discussion in 'The Business of Hockey' started by Impossibles, Jul 5, 2006.

View Users: View Users
  1. Impossibles

    Impossibles Registered User

    Joined:
    May 14, 2003
    Messages:
    6,443
    Likes Received:
    0
    Trophy Points:
    0
    Occupation:
    Mechanical Engineering Te
    Location:
    Langley, BC
    Home Page:
    The Canucks have done this a couple times now. I don't understand why teams are signing players to staggered contracts, since the average of the contract counts against the cap.

    Are they hoping club revenues keep increasing, so it won't be such a hit in the pocketbook, or are they hoping to trade during the last years of the contracts and not actually have to pay that much?
     
  2. albertGQ

    albertGQ Registered User

    Joined:
    Jul 1, 2005
    Messages:
    529
    Likes Received:
    1
    Trophy Points:
    76
    Location:
    Calgary
    I think its the players that want the staggered contracts.

    Eg. Young forward signing a 3yr $12M deal. If it was a $4M average, then at the end of the deal, the young forward would have to be qualified at $4M, but if it was staggered at $3M for the first year, $4M for the second, and $5M for the third, the young forward would have to be qualified at $5M instead of $4M
     
  3. boredmale

    boredmale Registered User Sponsor

    Joined:
    Jul 13, 2005
    Messages:
    36,395
    Likes Received:
    1,946
    Trophy Points:
    186
    i actually wonder why teams don't sign front loaded deals. Let's take the Elias contract for instance. Pay him 8 Million the first 5 seasons and 1 million the last 2. This would be great for them because lets say he slows down in the final 2 years and isn't worth the 6 million dollar cap hit, they can trade him and his 1 million dollar salary to another team that doesn't have cap issues.
     
  4. AdmiralPred

    AdmiralPred Registered User

    Joined:
    Jun 9, 2005
    Messages:
    1,923
    Likes Received:
    0
    Trophy Points:
    0
    A few threads below as of today.

    Is there a max to the number of years a SPC may be negotiated?
     
  5. sk84fun_dc

    sk84fun_dc Registered User

    Joined:
    Nov 4, 2004
    Messages:
    16,442
    Likes Received:
    0
    Trophy Points:
    0
    there are rules regarding the salary change from one season to the next built into the CBA, so that huge a drop-off from 6 to 1 would not be allowed

    but, Elias' contract is staggered

    "Elias' six-year, $42 million contract breaks down so he'll earn $7.5 million the first two years, $6 million the next two and $5 million for the final three years" source: Bergen Record
     
  6. kdb209

    kdb209 Registered User

    Joined:
    Jan 26, 2005
    Messages:
    16,271
    Likes Received:
    5
    Trophy Points:
    126
    There is no maximum length for a contract in the CBA, but there is a practical limit - insurance.

    Teams always get insurance to cover their liabilities in case of injury, etc, but it is very difficult to get a carrier to offer insurance on a long contract.

    This issue came up when there were the rumours of Mad Mike offering DiPietro a 10+ year contract. It was supposedly insurance that scuttled the deal - it was impossible to get insurance on it. Reports then said the team could not get insurance on contracts over 5 years.

    Yes I know there are counter examples - Yashin's 10 yr deal and some 6 yr deals like Elias'.
     

Share This Page

monitoring_string = "358c248ada348a047a4b9bb27a146148"