Seravalli: NHL GMs table LTIR discussion to July meeting
MANALAPAN, Fla. — The NHL listened to the concerns of GMs on Tuesday about the perceived improper use of the long-term injury (LTIR) exception, engaged in frank discussion, but ultimately tabled the topic until the summer.
This was no surprise, as there was no option for immediate change available anyway, but there is no question that the issue is one of concern for some clubs moving forward.
The item was added to the agenda after it appeared the Vegas Golden Knights might attempt to do with Mark Stone what the Tampa Bay Lightning did with Nikita Kucherov last season: exceed the salary cap by a significant margin, only to wait to active him in the playoffs – when there is no salary cap.
“Nothing was decided, other than good discussion,” said Calgary Flames GM Brad Treliving.
”The feeling is that it hasn’t been a massive issue,” said Edmonton Oilers GM Ken Holland. “But enough people in there feel we should continue to monitor it. We’re going to further discuss at the manager’s meeting in July in Montreal at the draft.”
That Kucherov and the Lightning flaunted their salary cap maneuvering with “$18 million over the cap” t-shirts during their Stanley Cup celebration did not sit well with anyone from afar.
Holland is one of the proponents of change, saying he’d like to see a salary cap system instituted for the playoffs.
”I am, certainly,” Holland said. “But first off, I am one of 32.”
His reasoning is simple: “You’re in a salary cap world. You get into the playoffs, an injury can’t be an opportunity to build your team.”
That’s a position that more managers in the room agreed with than did not, which would put them in the majority.
Even with an apparent appetite for change, the NHL’s position on the matter is: 1) This has not been a problem for 17 years; 2) It will require a material change to the CBA, which must be negotiated with the NHL Players’ Association, and this doesn’t sound like an issue the league is willing to burn bargaining capital on.
”There are always adjustments people would like to make to the [CBA], [and] this is something that would be nice to change the perception, but I don’t think it’s viewed as a problem because it hasn’t been,” said NHL commissioner Gary Bettman. “We have ongoing discussions about how the [CBA] operates with the [NHLPA] on a regular basis. This wouldn’t raise to a higher level. If you look at the system and how it’s held up over the last 17 years – despite the fact that agents and managers try to get creative – the fact is the system works well.
”There are always little tweaks that you’d like to focus on, but none have risen to the level that it’s, ‘Oh my word, this has been a terrible abuse.’ It hasn’t risen to that level.”
For the record, Bettman said Tuesday he is satisfied with how the Golden Knights have managed their LTIR situation.
”Based on what I know about it to this point, yes,” Bettman said.
NHL deputy commissioner Bill Daly reminded the assembled media that the league regularly conducts a review of all medical files ahead of the trade deadline to get a grasp on each team’s situation. The Golden Knights have passed the smell test to this point.
”It’s no secret that around every trade deadline, we reach out to the clubs and understand their injury situation and get a sense of projected dates of return,” Daly explained. “Whenever LTIR is being used – and the projected return is around the start of the playoffs – we look into it. We deal with the clubs, we get their medical records, we employ an independent medical expert and we make sure the bonafides of the injury. We’ve never had issues that stem from that. It’s a thorough process.”
No-Trade List Database
As a result of the Evgenii Dadonov trade that was voided last week between the Golden Knights and Anaheim Ducks, the NHL plans to build a database of all ‘no-trade’ lists to ensure that type of scenario never happens again.
”At the end of the day, Central Registry didn’t have a copy of the ‘no-trade’ list,” Daly said.
Subject to agreement with the NHLPA, all future ‘no-trade’ lists will be filed to both the league’s Central Registry and the Players’ Association.
”For all new contracts, certainly,” Daly said. “And then it will be a process of seeing if we can build a database with respect to existing contracts.”
That has left some agents concerned about the potential for those lists, which are usually well guarded, to be leaked out into the public sphere – which could create additional headaches for both teams and players.
Revenue Projection
Reflecting what we reported last August, the NHL reiterated to GMs on Tuesday that next season’s salary cap is projected to increase $1 million to $82.5 million.
This is a formulaic increase, as laid out in the CBA, that kicks in once hockey-related revenue returns to the pre-pandemic level of $4.8 billion.
After projecting this season’s revenue at $5.2 billion in December, right before the COVID-19 omicron surge that temporarily shut the league down again, Bettman says business is strong.
“We believe that we’re well on the way to being over $5 billion,” Bettman reported.
With that, the NHL is projecting that the Players will repay their $1 billion debt to owners by the end of the 2024-25 season. If that holds true, the first year the salary cap can meaningfully increase will be 2025-26, aside from the scheduled $1 million increases until then.