"Investigating the Business of Sport"
cambridge, ON • Canada • 2009 Years Old • Male
New Kid on the Block
Posted 9:26 AM ET | Comments 0
Evening hockey fans,
I'll be starting a hockey blog, and be aiming to blog once a week or so on topical news around the NHL. This week, Luongo's 12 year 64 million dollar contract and a visit to the Toronto Maple Leafs rookie training camp at the Kitchener Auditorium this coming Sunday. On tap, the Leafs (or Marlies, Knights, Spitfires etc.) of Toronto take on the Penguins (Wilkes-Barre/Scranton) of Pittsburgh.
But first, the Canuck captain, perennial Vezina candidate and potential Canadian national hero has decided to retire a Canuck....at age 43. I don't think anyone would argue that Luongo isn't a premier goaltender, and at 30 years of age is just entering his prime, which he will spend the entirety of in Vancouver. A wonderful coup for the team, especially when you consider his cap hit is $5.33 million, or only a paltry $1.33 million more than the oft-injured Vesa Toskala, he of the .898 save percentage during his two years in Toronto, is set to earn in stipend next season.
The issue here however is that these decade long contracts are a clear circumvention of the spirit in which the latest CBA was created, and I believe a direct result of the 35+ years of age rule. For those unfamiliar with the rule, it dictates that any team signing signing a player to a contract or extension that takes affect after their 35th birthday will be liable for the entire cap hit for the length of the contract, whether that player honours it to completion or retires earlier than expected. By signing a player long-term to a contract before their 35th birthday the team allows itself two key advantages; firstly it reduces the annual average cap hit by virtue of front loading a contract and paying the player very little over the last few token years (generally years 7,8,9,10). What's more is that it would seem that both the players and team generally understand that the player will retire sometime before the completion of the contract, having collected the bulk of their pay early in the life of the deal, while allowing the team cap flexibility by having added the token years and thus reducing the average annual salary.
Using Luongo for example, it's pretty clear that a goaltender playing an average of 70-74 games during the regular season, as well as the 4-16 playoff games on an annual to bi-annual basis, while having a history of serious knee, ankle, and most recently groin injuries is unlikely to play until 43 years of age. While Luongo and the team have paid lip service to the possibility of him continuing to play into his Johnny Bower years, I think it's pretty clear that he'll have hung up the blades long before the end of the contract. The other key advantage of having signed this contract before his 35th birthday is that he is free to retire without having his annual cap hit of 5.33 million remain with the team. That is, as soon as he retires, the cap hit is removed from the books as if the contract was never signed, and Vancouver is free to move forward. Thanks to this unfortunate loop hole we've seen Detroit, and most recently Vancouver and Chicago circumvent the CBA, and what this does is undermine the NHL's stated attempt at maintaining a level playing field by virtue of equitable distribution of talent throughout the league. For examples beyond Luongo, see the contracts of Hossa, Marian Zetterberg, Henrik, and Franzen, Johan. You can be certain that the league's executive committee will seek to close this loop hole in the next CBA revision.
Now on to the rookie camp, I'll be looking to post some scouting notes on the following players (just to name a few) after the weekend, hope you all enjoy!
Nazem Kadri, C
Mikhail Stefanovich, C
Tyler Bozak, C
Viktor Stalberg, LW
Kenny Ryan, RW
Dale Mitchell, RW
Jerome Flaake, LW
Jesse Blacker, D
Jonas Gustavsson, G
James Reimer, G
Thanks for taking a look at my first blog, and I appreciate all questions and comments![
I'll be starting a hockey blog, and be aiming to blog once a week or so on topical news around the NHL. This week, Luongo's 12 year 64 million dollar contract and a visit to the Toronto Maple Leafs rookie training camp at the Kitchener Auditorium this coming Sunday. On tap, the Leafs (or Marlies, Knights, Spitfires etc.) of Toronto take on the Penguins (Wilkes-Barre/Scranton) of Pittsburgh.
But first, the Canuck captain, perennial Vezina candidate and potential Canadian national hero has decided to retire a Canuck....at age 43. I don't think anyone would argue that Luongo isn't a premier goaltender, and at 30 years of age is just entering his prime, which he will spend the entirety of in Vancouver. A wonderful coup for the team, especially when you consider his cap hit is $5.33 million, or only a paltry $1.33 million more than the oft-injured Vesa Toskala, he of the .898 save percentage during his two years in Toronto, is set to earn in stipend next season.
The issue here however is that these decade long contracts are a clear circumvention of the spirit in which the latest CBA was created, and I believe a direct result of the 35+ years of age rule. For those unfamiliar with the rule, it dictates that any team signing signing a player to a contract or extension that takes affect after their 35th birthday will be liable for the entire cap hit for the length of the contract, whether that player honours it to completion or retires earlier than expected. By signing a player long-term to a contract before their 35th birthday the team allows itself two key advantages; firstly it reduces the annual average cap hit by virtue of front loading a contract and paying the player very little over the last few token years (generally years 7,8,9,10). What's more is that it would seem that both the players and team generally understand that the player will retire sometime before the completion of the contract, having collected the bulk of their pay early in the life of the deal, while allowing the team cap flexibility by having added the token years and thus reducing the average annual salary.
Using Luongo for example, it's pretty clear that a goaltender playing an average of 70-74 games during the regular season, as well as the 4-16 playoff games on an annual to bi-annual basis, while having a history of serious knee, ankle, and most recently groin injuries is unlikely to play until 43 years of age. While Luongo and the team have paid lip service to the possibility of him continuing to play into his Johnny Bower years, I think it's pretty clear that he'll have hung up the blades long before the end of the contract. The other key advantage of having signed this contract before his 35th birthday is that he is free to retire without having his annual cap hit of 5.33 million remain with the team. That is, as soon as he retires, the cap hit is removed from the books as if the contract was never signed, and Vancouver is free to move forward. Thanks to this unfortunate loop hole we've seen Detroit, and most recently Vancouver and Chicago circumvent the CBA, and what this does is undermine the NHL's stated attempt at maintaining a level playing field by virtue of equitable distribution of talent throughout the league. For examples beyond Luongo, see the contracts of Hossa, Marian Zetterberg, Henrik, and Franzen, Johan. You can be certain that the league's executive committee will seek to close this loop hole in the next CBA revision.
Now on to the rookie camp, I'll be looking to post some scouting notes on the following players (just to name a few) after the weekend, hope you all enjoy!
Nazem Kadri, C
Mikhail Stefanovich, C
Tyler Bozak, C
Viktor Stalberg, LW
Kenny Ryan, RW
Dale Mitchell, RW
Jerome Flaake, LW
Jesse Blacker, D
Jonas Gustavsson, G
James Reimer, G
Thanks for taking a look at my first blog, and I appreciate all questions and comments![