[Signing] Pens re-sign Letang (6 yrs, $6.1 mil AAV)

[GreenLantern2814]

Originally Posted by Erick Estrada

NHLPA would push back hard. I think they have to change how LTIR works for players over 30 where teams are allotted an LTIR cap or something like that.

One solution could be to re-develop the cap system itself, allowing for more exceptions to keep your own players/players you acquired via trade, getting them their money earlier, instead of signing guys who are 35 to 6 year deals.

Aren’t the LTIR deals are all being paid by insurance anyway?

I can’t imagine the players like ending their careers with these goofy LTIR releases.

[Strange Brew]

Originally Posted by GioforPM

One example does not a trend make. Gaudreau will be 35 in 7 years. Here's the present list of 35+ contracts right now (previous years look a lot similar):

https://www.capfriendly.com/browse/35-plus

Will Gaudreau sign an Ovechkin/Letang deal or a Parise/Perry (noting the latter two were after buyouts).

And the list of players who don't make it to 35 is a lot longer than those who do. For every Perry there's a Bure/Kariya/etc. There's a reason 35+ contracts exist.

Bure and Kariya are very dated examples. No way is Gaudreau assigning a zero value to the new contract he will sign after his 7th year especially when salary cap will be well in excess of $100 million. It could be $130 to $150 million.

Not calling this a trend, just stating the arguments that ignore AAV aren’t very persuasive.

[Erick Estrada]

Originally Posted by GreenLantern2814

One solution could be to re-develop the cap system itself, allowing for more exceptions to keep your own players/players you acquired via trade, getting them their money earlier, instead of signing guys who are 35 to 6 year deals.

Aren’t the LTIR deals are all being paid by insurance anyway?

I can’t imagine the players like ending their careers with these goofy LTIR releases.

I don't think they mind getting paid not to play at all. I don't understand how insurance companies are happy paying out the salaries of players in situations like this as it's basically insurance fraud.

[Strange Brew]

Originally Posted by GreenLantern2814

Correct, the Flames need to beat the AAV and the term.

Using round numbers for the sake of argument:

7x10= $70m
8x10= $80m
8x11= $88m

The extra year at the same AAV doesn’t matter - he loses half of that to taxes, another 10% to agent fees and escrow, and maybe takes home $4M extra.

The extra year and extra $1m increases the value of the contract by 26%.

Nobody says no to 26% more.

Year at $9.5 per the Flames are getting beat in the open market by 25%. Obviously they were hoping for a counter from the Gaudreau camp which has yet to come. If I were Gaudreau I wouldn’t counter that either frankly when I’m a week away from UFA.

[GioforPM]

Originally Posted by Strange Brew

Bure and Kariya are very dated examples. No way is Gaudreau assigning a zero value to the new contract he will sign after his 7th year especially when salary cap will be well in excess of $100 million. It could be $130 to $150 million.

Not calling this a trend, just stating the arguments that ignore AAV aren’t very persuasive.

It’s not a zero value. But it won’t be $10M. And if Gaudreau is able to get a nice new contract after 7 years, he will also be able to get one after 8. So 8x10.5 plus, say a 4x$5M is still better than 7x11 and a 5v$5M deal.

[GreenLantern2814]

Originally Posted by Strange Brew

Year at $9.5 per the Flames are getting beat in the open market by 25%. Obviously they were hoping for a counter from the Gaudreau camp which has yet to come. If I were Gaudreau I wouldn’t counter that either frankly when I’m a week away from UFA.

I don’t think it’s unreasonable for Johnny to go to UFA and see what he’s being offered.

I do think he’ll give the Flames a chance to beat any offer he gets.

And at that point, you offer him $1M more, over 8 years, and you keep the player.

All in the game.

[Jay Random]

Originally Posted by GreenLantern2814

And at that point, you offer him $1M more, over 8 years, and you keep the player.

8th year is gone after UFA opens.

[Coach]

Originally Posted by GreenLantern2814

I don’t think it’s unreasonable for Johnny to go to UFA and see what he’s being offered.

I do think he’ll give the Flames a chance to beat any offer he gets.

And at that point, you offer him $1M more, over 8 years, and you keep the player.

All in the game.

Correct me if I’m wrong, but doesn’t the 8th year advantage go away as soon as UFA begins?

[sureLoss]

Originally Posted by Coach

Correct me if I’m wrong, but doesn’t the 8th year advantage go away as soon as UFA begins?

day before free agency begins.

[Macman]

Will the Penguins re-sign Malkin, it’s been reported they offered a 3 year 18m contract but Malkin wants term.

Source: Josh Wegman