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Kingston, ON • Canada • 28 Years Old • Male

There has been a lot of talk about Roman Cervenka and questions as to what he was offered in his contract and what it actually means to the team and cap in real world dollars. The following is my attempt to explain and debunk it.

Roman Cervenka was signed to an Entry Level Contact (ELC) with the Calgary Flames on May 02 for a total Cap hit of $3.775 million. Now since it was an ELC, the Flames went with the maximum allowed base pay of $925,000 with the remaining $2.85 million all locked up in performance bonuses.

For signing with the Flames, Cervenka receives $92,500 which he will most likely receive at the end of the year (Signing bonuses can be no more than 10% of the base).
The signing bonus is part of the $925,000 base.

The remaining $2.85 million is locked up in the following performance bonuses:

Schedule A $850,000

The following are the categories that make up the $850,000:

Goals: 20 goal minimum
Assists: 35 assist minimum
Points: 60 point minimum
Points per game: .73 minimum (note: minimum 42 GP)

* No single one of these categories can exceed $212,500

Schedule B $2 million

For the following, the league suggested is $250,000

Hart, Richard, Selke, Conn Smythe

For the following, the league suggested is $100,000:
All-star team selection

Going by the league suggested, we could come up to a value of $1.1 million, but players are allowed to negotiate with teams and these bonuses totaled $2 million.

So there we have it:

$925,000 Base
$850,000 Schedule A
$2,000,000 Schedule B
$3,775 million

To me, this is great news, as it means we pay Cervenka based on his performance and we're not just handing over $3.775 million for nothing. If Roman exceeds expectations and manages to receive a lot of the bonuses, well that means the Flames are going to receive a huge boost in production.

Lastly we look at the Cap issue: if he only gets paid $925k why are we penalized $3.775 million on the cap?

In the 2010-2011 season, Schedule A bonuses didn't count and Schedule B bonuses only counted if they earn them at the end of the season. If cap space wasn't available for them at the end of the season, they rolled over into the next season.

Because 2011-12 was the end of the CBA, all 2011-12 bonuses counted against that season cap with no carry over (since there is no 2012-13 CBA).

How the Cervenka contract bonuses affect the team are yet to be determined. If the CBA was reached today it could allow actual salary to count against the cap rather than salary and bonuses.

With a $925,000 salary and $850,000 in realistic bonuses (which would net us something like a 77 point season or 35 goals) it sure seems like a great opportunity.

What do you think: is this contract a win?

*** notes ***

It is of note that all ELC are two-way contracts, so if Cervenka flops we can send him right back down to the AHL.

Cervenkas contract has an out for him to return to Europe

Also of note, being 26, Cervenka is eligible for the Calder award.

Jamie Desrochers - Covering Flames hockey in Ontario
Follow me on twitter @vowswithinhb
Filed Under:   flames   cba   cap   cervenka   contract  
July 7, 2012 11:57 AM ET | Delete
It's a fantastic contract and one that benefits both parties. Roman is excited about being with Calgary and he's determined to play the best that he is able to and earn his bonuses, as well as help his team win as many games as possible.New guy in the locker room with Hudler as well means fresh approach... and it is still a gamble, albeit a very good one consdiering the "risk vs reward".
July 7, 2012 12:16 PM ET | Delete
Although an experiment your absolutely right on, and even in one article that calculated NHLe (NHL equivalence for KHL) And it was 33 goals and 32 assists. Now I doubt he is going to score at that rate but if he did... :D
July 7, 2012 12:18 PM ET | Delete
Although I feel We are improved so are many teams. Just look at minny. There needs to be some more acquisitions and quite obviously some subtractions ( Stajan babchuck, others?) back end is loaded up with 1 way contracts.
July 7, 2012 2:00 PM ET | Delete
Nice Risk V. Reward type of deal for Calgary especially since they farmed him basically outta no where. Be interesting to see this kid play. Why not though for the Flames especially being short on prospects besides Baertschi.
July 7, 2012 3:32 PM ET | Delete
Yeah things arent as bad as everyone thinks... There are prospects but they are all a ways off right now. Bill Arnold, John Greadeau, Markus Granlund, Max Reinhert, John Rammage, And of course all this years picks which are all unknows right now. Like Mark Jankowskis size tho.
July 7, 2012 9:22 PM ET | Delete
ya things aren't as bad as they seem. I would have mentioned ferland(could be a GlenX in the making) and maybe howse before bill arnold though
July 7, 2012 9:56 PM ET | Delete
Yeah sorry you know these get cut off if you write too long, that and I accidentally left them out. Been awhile numbear! On a sad note Arnold has an injury so he won't be at development camp :(
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