Kopitar signs 8year/$80M contract confirmed with link

[KopitarFAN]

Contracts like these virtually guarantee that the owners will exercise their option to terminate the existing CBA on September 1, 2019. NHL GMs simply can't help themselves. The owners will correct the situation. The cap will likely be stagnant for much of the next four seasons. It's going to impact teams like Chicago and the Kings the most.

The window is this season and maybe next season. Next player up for his big payday is Tyler Toffoli the year after next. I'm just going sit back and enjoy the ride now before the inevitable result of this foolishness. Stan and the Blackhawks led the way.

I agree. It's just so bizarre that those opt-outs for each side don't impact the 19-20 season, but rather the 20-21 season, they better hope that info doesn't get out.

 

[mouser]

What's the relevance of signing bonus vs. salary? I noticed that in each of the first two years part of his salary is $9m of 'signing bonus'.

What's the distinction between salary and signing bonus?

Signing bonuses are most typically paid out on July 1st, or early in the summer. As opposed to regular salary (paragraph 1 salary) that is paid out in equal installments every two weeks during the regular season.

From a contract AAV standpoint it doesn't make a difference. Situations where large signing bonuses could make a difference are mainly composed of:

(a) Players collect signing bonuses even during lockouts. Many players were able to get much of their compensation contracted as signing bonuses for 2012-2013 for example.

(b) Signing bonuses are still paid in full at 100% even if a player is bought out. This can reduce the benefit of buying out a player. e.g. Clarkson's contract is considered "buyout-proof".

(c) Signing bonuses can make for interesting summer trade situations where the $ both the original and new teams end up paying a traded player for the upcoming season could change widely depending on whether the player was traded before or after the signing bonus payment is made.

 

[mbar]

It's strictly involves the present value of money. Would you rather have $9M to invest today, or get paid $9M over nine months?

Ahh. Got it thanks.

Edit - both of you.

 

[King'sPawn]

What's the relevance of signing bonus vs. salary? I noticed that in each of the first two years part of his salary is $9m of 'signing bonus'.

What's the distinction between salary and signing bonus?

He gets $9 million each July 1st on the first two years, and $5 million spread through the rest of the season.

The non bonus years his annual salary is spread throughout the year.

The question I have is, does the $9 million affect the daily cap hit as far as signing players on July 1st? And since he gets $5 million spread over the course of the season, does that actually give Kings daily cap flexibility in the regular season?

 

[mouser]

The question I have is, does the $9 million affect the daily cap hit as far as signing players on July 1st? And since he gets $5 million spread over the course of the season, does that actually give Kings cap flexibility?

No effect to either. The total $14m is averaged over the course of the season cap, even though $9m was paid up front.

No different then the contract AAV being used for all cap purposes, rather then the actual compensation in any given season.

 

[mrkolice]

Signing bonuses are most typically paid out on July 1st, or early in the summer. As opposed to regular salary (paragraph 1 salary) that is paid out in equal installments every two weeks during the regular season.

From a contract AAV standpoint it doesn't make a difference. Situations where large signing bonuses could make a difference are mainly composed of:

(a) Players collect signing bonuses even during lockouts. Many players were able to get much of their compensation contracted as signing bonuses for 2012-2013 for example.

(b) Signing bonuses are still paid in full at 100% even if a player is bought out. This can reduce the benefit of buying out a player. e.g. Clarkson's contract is considered "buyout-proof".

(c) Signing bonuses can make for interesting summer trade situations where the $ both the original and new teams end up paying a traded player for the upcoming season could change widely depending on whether the player was traded before or after the signing bonus payment is made.

mouser, based on everything, where do you think the big delay came from? maybe kopi and his agent anticipating a lockout season soon?

 

[King'sPawn]

No effect to either. The total $14m is averaged over the course of the season cap, even though $9m was paid up front.

No different then the contract AAV being used for all cap purposes, rather then the actual compensation in any given season.

Thank you for clarification. Nice avatar, too. Rickman will be missed.

 

[likid]

The ones, that believe that there will be for sure lock-out, should be the most happy with this contract.

Instead of four years at AVV 12,5M they got four years of Kopi at 10M AVV...

 

[mouser]

mouser, based on everything, where do you think the big delay came from? maybe kopi and his agent anticipating a lockout season soon?

I would guess they agreed on $80m / 8 years a while ago, then had to spend the time negotiating the specific amounts of salary and signing bonus each season. As you can see the contract varies a good bit over the 8 years.

If they're worried about a lockout season then Kopitar's agent would try to get as much of the 2020-2021 and 2022-2023 seasons compensation as a signing bonus rather then regular salary. Those are the most likely seasons to see a lockout.

 

[Model62]

It's strictly involves the present value of money. Would you rather have $9M to invest today, or get paid $9M over nine months?

It also gets Kopitar more of his money just in case there's another lockout. Which helps see him through the lean times, and protects him if as a result of the negotiation, big contracts get trimmed or the guarantee is eliminated (both seem unlikely, but a risk anytime the CBA is reopened).

Curious how these signing bonus deals impact escrow.

 

[theMajor]

Contracts like these virtually guarantee that the owners will exercise their option to terminate the existing CBA on September 1, 2019. NHL GMs simply can't help themselves. The owners will correct the situation. The cap will likely be stagnant for much of the next four seasons. It's going to impact teams like Chicago and the Kings the most.

The window is this season and maybe next season. Next player up for his big payday is Tyler Toffoli the year after next. I'm just going sit back and enjoy the ride now before the inevitable result of this foolishness. Stan and the Blackhawks led the way.

pretty relevant

 

[mouser]

Curious how these signing bonus deals impact escrow.

I don't think we've ever gotten an official answer. According to the CBA the league only collects escrow during the regular season. Lots of speculation that it should get "evened" up somehow to be fair to all the players that don't have signing bonuses. Yet haven't seen the NHL or PA make any statements on whether that's true and if so how it's done.

 

[mrkolice]

pretty relevant

let's call it hometown discount. the game is almost up, gkg!

 

[Captain Mittens*]

pretty relevant

Mother****ing relevant

 

[theMajor]

seems that ol' Deaner is two steps ahead

 

[mrkolice]

any qoutes from dl or kopi?

 

[Raccoon Jesus]

pretty relevant

Could have been one of the sticking points to be sure, but he gets so much early in the contract it shouldn't bother him. He can just retire to his double-lot mansion for the year

Cheers to Kopi hopefully retiring a King...and I do think he can kind of Sundin it later in his career too, I personally think people talking about his absolute demise in years 7-8 don't see how durable and consistent he is. He obviously won't be prime Kopitar, but I think he'll still be effective.

Plus,



I love this nickname so much I'm rebranding

 

[Ron*]

I don't expect the Kings to be contenders in 3 years from now. They will make the playoffs, but without superstar talent, and Kopitar is not a superstar, you need depth. Expect guys like Lewis, King, Clifford, maybe Martinez to be gone within 3 years if Dean doesn't have some magic beans to package in a deal with Dustin Brown.

Moving Brown in the off season now becomes imperative, almost no matter what it costs.

Stopped reading after the bolded part. How utterly unhinged can one get because something didn't go his way?

 

[mrkolice]

raccoon jesus, ho ho!

 

[deaderhead28]

I guess I'm the only one that see's this as bad for the fans and for the Kings.This probably means no TT no Lucic and Schenn,all for a guy who thought of himself instead of the team.The cap will probably stay the same or go up a mil or so.

 

[Ron*]

I guess I'm the only one that see's this as bad for the fans and for the Kings.This probably means no TT no Lucic and Scheen,all for a guy who thought of himself instead of the team.

Wrong on all counts. I've posted elsewhere where they can work It out. Do the analysis and avoid drive by posts that have no basis in fact.

 

[Steve Zissou]

Some of you act like your smarter than Dean Lombardi. It's science, *****es.

 

[theMajor]

I guess I'm the only one that see's this as bad for the fans and for the Kings.This probably means no TT no Lucic and Scheen,all for a guy who thought of himself instead of the team.The cap will probably stay the same or go up a mil or so.

Dean wouldnt have signed this if it meant no TT....

 

[Captain Mittens*]

I guess I'm the only one that see's this as bad for the fans and for the Kings.This probably means no TT no Lucic and Scheen

Who the hell is Scheen?
Sheen is the actor with HIV. Schenn plays hockey.

 

[KingsFan7824]

Don't worry everyone in the bottom six forward group and the 5-6 defensemen are easily replaced by kids in Ontario.

Who is the proven center that would've replaced Kopitar while allowing for proven depth to be kept or added?