Around the League Thread | Ixnay on Zerplanyay

[StreetHawk]

... why is deferred money (that doesn't count against the cap) even in the CBA if the intent was to create a hard salary cap? What a stupid mickey mouse league.

I agree. Either discount it for every year to bring it to the NPV in the year signed. Or don’t discount at all.

Ohtani I can get as the amounts are massive and record setting. Jarvis isn’t. Even Slaf is getting like $9 mill per over the fist 3/4 years of his contract before it drops down into the $6’s to get the $7 mill plus AAV.

 

[VanJack]

I guess you have to admire the 'Canes for being creative. But the guy who should have gotten an eight-year deal is Necas.....but for whatever reason, they've never really valued him that highly in Raleigh, and he's still one of the top trade candidates in the NHL.

 

[andora]

I guess you have to admire the 'Canes for being creative. But the guy who should have gotten an eight-year deal is Necas.....but for whatever reason, they've never really valued him that highly in Raleigh, and he's still one of the top trade candidates in the NHL.

Jarvis is better than necas and the gap will only grow

 

[pitseleh]

Yeah, I get that and it’s also why players have been extremely hesitant to defer any money.

But I stand by my opinion. Any money committed to a player should count towards the salary cap. Otherwise it’s not a hard salary cap.

The problem is I don’t think the league (or most) wants to end up in a situation where a team loads up by deferring a ton of money to minimize cap hits in the short term. It would probably be better to just not to PV the the deferred money (or ban deferred money outright).

 

[StreetHawk]

The problem is I don’t think the league (or most) wants to end up in a situation where a team loads up by deferring a ton of money to minimize cap hits in the short term. It would probably be better to just not to PV the the deferred money (or ban deferred money outright).

It's a $400K per year savings against the salary cap. Do that a few time times and you can get upwards of $2 mill savings against the cap. Personally, not something I'd be willing to do as a player.

Tax laws change over time. How will that bonus be treated if he's with another team at the time, say in NY, Cali, STL or even back in Canada?

 

[rypper]

Well here is a clever idea.
McD gets an offer of 1.25% ownership in the Oilers. If valued at 1 Billion, which it isn't yet, that's 75 million, then he signs for league minimum for 8 years or both him and Dras. Of course that percentage could have conditions like a cash out or buyout clause by year 20. Just what could the team do with an additional 20+mil and growing in cap space? What could the league do?
A percentage can't be calculated because team value could go up or down.

Just a real out of the box idea.
A team takes up to 5% ownership in a term of 10 to 20 years to spread around their top players and gain almost unlimited cap space.

Another maybe for taxes, a team LOANS the player money? No taxes on loans/borrowed money?

Cap circumventing 101.

 

[pitseleh]

It's a $400K per year savings against the salary cap. Do that a few time times and you can get upwards of $2 mill savings against the cap. Personally, not something I'd be willing to do as a player.

Tax laws change over time. How will that bonus be treated if he's with another team at the time, say in NY, Cali, STL or even back in Canada?

Agreed, all else equal. But it depends on the counterfactual too. If $7.5 AAV was the best Carolina would do, then it could be a creative way to get Jarvis a bit of extra money in his mind. Only really makes sense if he values it as such, since the team should be indifferent.

 

[StreetHawk]

Agreed, all else equal. But it depends on the counterfactual too. If $7.5 AAV was the best Carolina would do, then it could be a creative way to get Jarvis a bit of extra money in his mind. Only really makes sense if he values it as such, since the team should be indifferent.

To save that $3.2 mill from the cap it’s about $7 mill or something he’d have to push to year 9 in order to be discounted back to save that amount against the cap.
If I take a lower AAV, I’d rather get as much upfront and in SB to offset it vs push money out into the future.

EDIT * It's actually reported that it is $15.67 mill that is being deferred to July 1, 2032. Just under $5 mill from his year 1 and year 2 bonuses each. So, his year 2 is $6 mill base salary and a NPV of $3 mill and change SB. Thus, that should mean he is only getting his $6 mill base and a very small amount of SB if at all. Year 7 is $5.77 mill that is deferred by 2 years.

Honestly, I'd take Slaf's deal that averages $7.6 mill that gives me $9 mill per in the early years.

 

[Diversification]

The Canucks would be forfeiting draft picks if they tried this/or receive a cap penalty for circumvention. no question

Pretty sure Ottawa just forfeit their 3rd at the time CAR announced the deal.

 

[Hit the post]

The Canucks would be forfeiting draft picks if they tried this/or receive a cap penalty for circumvention. no question

Nah, the league would first approve the contract & *THEN* f*ck the Canucks up the ass later with a retroactive penalty.

 

[Bonham]

Not having deferred money count as a dead cap charge is incredibly stupid.

How is it not?

Seems like obvious cap circumvention to me.

Don't see how it's any different than the Luongo penalty -- same intent.

 

[Peen]

Haven’t been as interested in posting since Grub’s post and I had some thoughts on the goaltending situation but that seems so secondary now.

RIP to both the brothers. So devastating.

 

[theguardianII]

Cap circumventing 101.

Thing is it is not ruled out and Lemeiux has done it already and Gretzky had something similar.
Orr was offered 10% of the Bruins and Chicago.

Indeed those proposals are totally outside the CBA. The league cannot prevent a player from buying a portion of a team.

 

[StreetHawk]

How is it not?

Seems like obvious cap circumvention to me.

Don't see how it's any different than the Luongo penalty -- same intent.

It's odd that this was still in the CBA after the recapture. Figured the intent was to ensure every dollar paid to the player hit the salary cap, now they are doing a NPV for outside the max term?
Deferring to me would make more sense to Slavin who is 31 at the start of his deal thus this is going to be his last one in the nhl. Jarvis is 22, so he's done this deal at 30 and barring injury or anything unforeseen, should continue playing afterwards.

Easier for Slavin do move to a more tax beneficial state if he needed to once his deal/career was over than a guy who would be looking to sign as a UFA either on July 1, 2032. I mean, Carolina has let Hamilton, Ferland, Pesca, Skjei, Teraveinnen walk as UFA.

 

[rypper]

Thing is it is not ruled out and Lemeiux has done it already and Gretzky had something similar.
Orr was offered 10% of the Bruins and Chicago.

Indeed those proposals are totally outside the CBA. The league cannot prevent a player from buying a portion of a team.

That was before the salary cap.

 

[vadim sharifijanov]

Thing is it is not ruled out and Lemeiux has done it already and Gretzky had something similar.
Orr was offered 10% of the Bruins and Chicago.

Indeed those proposals are totally outside the CBA. The league cannot prevent a player from buying a portion of a team.

i think they can, or at least if you look at it from the opposite perspective they can stop a person who owns a team from playing in the league.

at the very least there has to be some safeguard so a player who owns a share of one team can’t play for a different team.

 

[wetcoast]

https://x.com/i/web/status/1829867419734851923

So what’s stopping teams from deffering $70M to a star player and bringing the AAV to like $4M a year? Lmao

From what I understand it does cost the team more actual money so there is that but it's a very interesting angle and we will see if it becomes more common.