Dominic Tiano: Can the Bruins Fit Mike Hoffman Under the Cap?

Dominic Tiano is on fire, and brings us another intriguing piece laying out a scenario in which the Boston Bruins could potentially work a 1-year contract with unrestricted free agent Mike Hoffman into their current cap crunch (while also making a Zdeno Chara extension work). No one does cap maneuvering like Dom does, so sit back and enjoy his latest. -KL

The COVID-19 pandemic has affected all of us individually in one form or another. It has also affected the arts, entertainment and the sports world.

Unless you’ve been living under a rock for the past 9 months, there is no need for me to explain how the pandemic has affected the National Hockey League, your favorite team, or your favorite player so, we won’t go there.  

When it comes to unrestricted free agents in the NHL, maybe no one has been more negatively impacted then one Mike Hoffman. While the likes of Taylor Hall, Alex Pietrangelo and others signed contracts relatively quickly, Hoffman waited. It’s not that there weren’t offers on the table for him.

But why wait in a world with as many financial question marks as the NHL has? Were there only one-year offers being thrown his way? Was he adamant that any contract be a long-term deal? Not according to his agent Robert Hooper who made it clear they’d be willing to accept a one-year offer. (By the way, it must be noted that Hooper is also the agent for David Krejci.)

Could we see the two Hooper clients skating side-by-side on TD Garden ice (or wherever they may be playing) for the 2021 NHL season? When free agency began, Hoffman was being linked to the Bruins by many in the hockey world. Over the last couple of days, those links to Boston have been resurrected. As they say “where there’s smoke, there’s fire.”

As free agency moved along, we saw the cap space the Bruins had begin to evaporate after signing Kevan Miller, Matt Grzelcyk, Craig Smith and Jake DeBrusk all while waiting on a decision by Captain and future Hall of Famer Zdeno Chara and his plans.

The independent website CapFriendly currently shows the Bruins with $2,982,686 in cap space for the upcoming season. So how could the Bruins possibly fit a player of Hoffman’s caliber with the little wiggle room they have? It’s doable. And they could even fit Zdeno Chara in.

At the top of the list is what the Chara decides to do. You could almost bet that if Chara was to return, that he would eat up the majority of the cap space the Bruins have remaining. Would Chara be open to returning on a deal with a $1.5 million cap hit with performance bonuses? (I believe we’ll have an answer to the Chara questions before the holidays, if not sooner.)

Assume that he would. Would Hoffman agree to a one-year deal with a $5 million cap hit?

Under normal circumstances, the answer would be a resounding no. And I will be the first to admit that is a lowball offer for Hoffman. But we’ve seen in these uncertain times, players take less money on short term deals and wait out the ugly financial uncertainty that sits over the NHL’s head.

Many players took pay cuts. Braden Holtby, Justin Schultz, Tyson Barrie, Craig Smith, Tyler Toffoli, just to name a few. Not that they are on the same level as Hoffman but it’s the sign of the times. Under normal circumstances, most, if not all those players would have earned more.

What about term? Of the 278 non-entry level contracts signed since October 8, 2020: 167 were one-year deals (60%), 76 were two-year deals (27.3%), 21 were three-year deals (7.5%), 8 were 4 years deals (2.8%) and 6 were for 5 or more years (2.1%).

How does that compare to the 2019 free agency period beginning on July 1, 2019 through to October 1, 2019? There were 265 contracts through the free agency period, just 13 less than the current period. That breaks down as follows: 159 were 1-year deals (60%), 63 were 2-year deals (23.8%), 15 were 3-year deals (5.7%), 8 were 4-year deals (3.0%) and 20 were 5+ year deals (7.5%).

While 1-year contracts went unchanged percentage wise, there is a clear trend that suggests players and owners both moved away from long term deals in favor of 2-year deals, suggesting financial uncertainty plays a role.

Even if Chara and Hoffman did accept those terms, the Bruins would still be short roughly $3.5 million. Where could they possibly make that up?

In the short term, Long Term Injury Reserve could be an answer as they await the status of David Pastrnak, Brad Marchand and Miller. That would at least buy them some time to get the cap in order.

But what about long term?

Since CapFriendly is the most trusted resource available when it comes to the NHL’s salary cap. Let’s continue by working off of their numbers.

Firstly, we need to add a defenceman in the form of Jakub Zboril if the Bruins are serious about giving him an opportunity. That reduces the cap space available to $2,257,686.

Secondly, we remove the Anton Blidh ($700,000) and Par Lindholm ($850,000) cap hits by sending them to Providence. That cap space now becomes $3,807,686 and a roster that resembles this:

Marchand – Bergeron – Pastrnak

DeBrusk – Krejci – Kase

Bjork – Coyle – Smith

McKegg/Ritchie – Kuraly – Wagner

Grzelcyk – McAvoy

Moore – Carlo

Lauzon – Miller

Zboril – Clifton

The most obvious answer if you ask Bruins fans in general would be to move Nick Ritchie and John Moore via trade. Combined, that would clear $4,248,925 in cap space but likely would require taking a salary back in return.

That brings us to Anders Bjork. Signed for three more seasons and a controllable $1.6 million cap hit, he would be more enticing to other teams since he would still be a restricted free agent when his deal expires and much easier to move without having to take salary back in the return.

That would leave a roster that would look like this:

Marchand – Bergeron – Pastrnak

Hoffman – Krejci – Kase

DeBrusk – Coyle – Smith

McKegg/Ritchie – Kuraly – Wagner

Grzelcyk – McAvoy

Moore – Carlo

Lauzon – Miller

Zboril – Clifton

That roster would leave the Bruins with $407,686 in cap space. So, how would you fit Chara in while still adding Hoffman?

It’s likely that any Chara contract would come with some sort of performance bonus. Here’s the issue: Both Jaroslav Halak and Kevan Miller deals include performance bonuses with easily attainable numbers totalling $2 million. The Bruins could use the bonus overage and defer that to the 2021-22 season when David Backes’$1.5 million retained cap hit comes off the books. That’s just replacing Backes’ “dead money” with even more “dead money”. A Chara performance bonus just makes that even greater. And they’re already deferring $964,222 from the 2019-20 season.

No one really knows which direction Bruins cap genius Evan Gold will take. One thing I have faith in is that he will figure it all out. Back to the subject at hand.

Unless the Bruins plan on moving out one of their core players with big cap hits, the only viable solution to these eyes is moving Moore. And to move him without taking any salary back may just mean that you are going to have to move a prospect or a pick to entice a team. That’s where I look at a team like Detroit, who are rebuilding, stockpiling draft picks and prospects and have cap space. And Detroit only has two defencemen signed beyond this upcoming season, and just five if you’re counting prospects. Maybe you could package Bjork and Moore together to a team like Detroit. Bjork would certainly fit into what Steve Yzerman is trying to accomplish in Motown.

If the Bruins can make that happen then we have a roster that will look like this:

Marchand – Bergeron – Pastrnak

Hoffman – Krejci – Kase

DeBrusk – Coyle – Smith

McKegg/Ritchie – Kuraly – Wagner

Grzelcyk – McAvoy

Chara – Carlo

Lauzon – Miller

Zboril – Clifton

That would leave the Bruins with $1,657,686 in cap space and a 23-man roster. That space can be used to eat up performance bonuses, or be used at trade deadline or more likely to get Chara and Hoffman signed to deals they could likely get somewhere else. Especially Hoffman as $5 million is going to be on the light side. Then again, no other contender can afford much more than that.

The purpose here isn’t intended to suggest any or all of this is going to happen. Its intention is to suggest that there are options and that financially, the Bruins could make it work. There’s been plenty of negativity on social media about the handling of the cap when it comes to the Bruins, especially after GM Don Sweeney signed Miller to his contract.

Time after time after time we’ve seen NHL GM’s work themselves out of a cap issue. We’ve even seen Sweeney do it himself with Matt Beleskey and Backes. Hindsight is 20/20 but he was able to do what he needed to do to rid himself of those deals. Yes, of course, they came at a cost. At the same time, Sweeney recognized it was a misjudgement and did what was best for the Boston Bruins.

Dominic Tiano: How the new NHL CBA affects the Bruins

Dominic Tiano is back with a helpful quick guide to the NHL’s recent extension of the CBA and how it impacts the Boston Bruins (specifically) and league writ large.- KL

The National Hockey League and the Players Association have agreed to a new six-year Collective Bargaining Agreement – a re-negotiation of the remaining 2 years plus 4 additional years. In the end, we have six years of labor peace moving forward.

First of all, NHL Commissioner Gary Bettman and NHLPA Head Donald Fehr deserve an endless amount of credit for this accomplishment. They’ve taken their time, and while not everyone is happy, they’ve gone about this in the right way – something we can’t say about other professional sports leagues. The NHL has experience in work stoppages – for other reasons – and the experience to come out of them. And when they do, they come out stronger than ever. And there is nothing to suggest it won’t happen again.

So, what changes affect the Boston Bruins in the immediate future? Here are some thoughts on what that’ll look like:

Minimum Salary

Beginning with the 2021-2022 season, the minimum salary rises from $700,000 to $750,000 and again in 2023-2024 to $775,000. With Connor Clifton and Jeremy Lauzon’s new contracts taking effect next season, it’ll not affect them. The only player this will have an affect on is Kyle Keyser, who will get an automatic raise from his $733,000 in his final year.

35+ Contracts

They are a thing of the past. Under the old CBA, any player that signs a contract at the age of 35 has their cap hit remain if they choose to retire for any reason. This affects Zdeno Chara right away as he is set to become an unrestricted free agent. However, you can not sign a 35+ player to a two-year deal with a lower salary in the second year to lower the cap hit as it must be ascending in year two or beyond. It also comes into play with Jaroslav Halak who’s deal is a 35+ next season. David Krejci will fall under that in 2021 and Patrice Bergeron a year later.

NTC/NMC Trades

Under the old CBA a team acquiring a player with a no trade or no movement clause had the option to extend those clauses after acquiring a player. That is now gone and the clauses will automatically follow the player to his new team, regardless if he waived his clause for the trade.

Arbitration

There have been some tweaks to the arbitration process. Teams still have the walk-away rights they held under the old CBA. But under the new agreement, if a team exercises their walk-away rights, the player can choose to sign a one-year deal with the team at the offer the team submitted under arbitration. The player has 4 days to make his decision. Bruins eligible for salary arbitration this offseason are Anders Bjork, Matt Grzelcyk, Brett Ritchie, Karson Kuhlman, Brendan Gaunce and Wiley Sherman. After the 2020-2021 season, it comes into play for Ondrej Kase, Nick Ritchie, Anton Blidh and Brandon Carlo.

Conditional Draft Picks

While teams will still be able to trade conditional draft picks based on where they finish, conditional draft picks will be a thing of the past when it comes to players re-signing. In other words, you can no longer trade a conditional draft pick for a player on the condition he re-signs.

Free Agent Interviews

Under the old CBA, teams were allowed to negotiate with pending unrestricted free agents five days prior to free agency on July 1st. Remember Matt Beleskey and David Backes? Maybe the NHL has done the Bruins a favor by eliminating that period? It will certainly make free agent frenzy more of a frenzy when there are no pre-negotiations and it’s a free for all at noon on July 1st. This year, free agency will begin 7 days after the cup is awarded.

10% Salary Deferred

Players agreed to defer 10% of their salaries and signing bonuses to the 2023 to 2026 seasons and most of the questions I receive are centered around how it affects the cap. The short and easy answer is it doesn’t. By deferring 10% a year, the contract total remains the same, and hence, the AAV or cap hit remain the same. The only thing that is affected is the player’s share of hockey related revenues. So, no, the teams do not get a 10% break on the cap.

Front Loaded Deals

Ever since the salary cap came into effect, the NHL has tried closing a loophole exploited by general managers, and that is front loading deals – paying more in the first part of the deal and adding years at the end of the deal at a lower salary to lower the cap hit. The NHL has taken steps to reduce that and in the new CBA take it a step further. Under the old CBA, salaries could not drop more then 50% from it’s highest year to it’s lowest year. That is now at 35%. The Bruins typically stay away from such deals however, Brad Marchand’s contract would not be allowed under the new CBA. Marchand’s highest salary was $8 million (in 2017-2018 and 2018-2019) and his lowest is $4 million in 2024-2025. That is allowable with the 50% drop, but under the new CBA, the lowest salary would rise to $5.2 million. No big deal right now as those contracts will be grandfathered, but you have David Pastrnak, Charlie McAvoy, Carlo, and Bergeron (among others) coming due under this CBA, so some creative bookkeeping lies ahead for Don Sweeney and Evan Gold. Not to mention it has thrown another wrinkle into possible negotiations with unrestricted defenceman Torey Krug.

One thing of interest here is that because of the uncertainty surrounding revenue and recovery because of the COVID-19 pandemic is that player agents and players may be looking towards backloading deals instead of front loading. With a cap on escrow now, it will greatly affect agents/players thinking here.

European Waivers

Under the previous agreement, players who had played in just one game in Europe would require waivers to sign and play in the NHL once the season starts. That has changed and now the player is exempt from waivers as long as a) he signs before December 15th and b) the team still owns his rights. The Bruins have several players that fall into this including Jakob Forsbacka Karlsson, Alexander Khokhlachev and more.

I must confess, I am not a lawyer but I have studied the CBA extensively over the years. The new legal document is not yet complete and may take months before all the legal language is completed and the actual CBA becomes available. All information comes from the Memorandum of Understanding signed by the NHL and NHLPA and is my interpretation.

Dominic Tiano: Evan Gold- the Man Behind the Bruins Cap Wizardry

Here’s an insightful post from Dom Tiano about Evan Gold, who is instrumental in Boston’s ability to manage the ever-complex salary cap management reality of the modern NHL. Enjoy!-KL

Most of the credit when it comes to the Boston Bruins and their ability to sign players to cap friendly deals and the way they manage the cap goes to General Manager Don Sweeney. It is the GM’s responsibility to bring in the best possible minds to put a management team together, so in that sense, Sweeney has done his job.

But let’s give credit where credit is due: Evan Gold is a master when it comes to the cap.

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The Bruins & the Cap- Where do they Stand?

by Dominic Tiano

For the vast majority of hockey fans, the National Hockey League’s Collective Bargaining Agreement and the salary cap can be a nightmare to understand unless you have a law degree from Harvard. Now, I don’t have such a degree, but I do talk to people who work with the CBA and Cap daily and have a good understanding in what the Boston Bruins are facing this upcoming season and beyond.

So here is my take on what General Manager Don Sweeney and cap guru Evan Gold face:

With the announcement by the Bruins yesterday that they have reached a contract agreement with Colby Cave, the Bruins have all their restricted and unrestricted players signed for the 2018-2019 season (at the very least, those they wanted to retain). Unless of course you want to count Rick Nash, who is still undecided if he wants to continue playing because of health issues.

Using CapFriendly as a source, we find the Bruins with $2.95 million in cap space with a 23-man roster. That money can be banked to use throughout the season to add to their current roster, including Nash if he wishes to return to playing hockey and with the Bruins.

Their cap space was reduced for 2018-2019 because of performance bonuses paid out to Charlie McAvoy, Jake DeBrusk and Danton Heinen that could not have fit under last season and are carried over. Under the CBA, a team can exceed the cap by 7% because of performance bonuses and have it charged to the following season. For 2018-2019, that charge to the cap is $774,000.

Further reducing their cap space is what is often called “dead money” – money paid to players no longer on the roster because they were bought out or the team retained salary in a trade. For 2018-2019, the Bruins are still paying Dennis Seidenberg ($1,166,167 for two more seasons) and Jimmy Hayes (866,667 for one more season) after buying them out. They are also paying Matt Beleskey in a salary retained deal with the New York Rangers $1.9 million for two more seasons, although the numbers could change if the Rangers choose to buyout Beleskey during the second buyout period. That’s just shy of $4 million in “dead money”.

At the end of the 2018-2019 season, the Bruins could be tagged with a bonus overage of just over $3.7 million. Potential bonuses that could be paid out are Zdeno Chara ($1.75 million) McAvoy ($500,000), DeBrusk ($425,000) Heinen ($212,500) and Ryan Donato ($800,000). Based on where the cap is today and barring no roster changes (although there are sure to be callups from Providence when injuries occur further reducing the cap) and that most, if not all those bonuses will be attained, fans and the Bruins can look forward to a bonus overage carried over to the 2019-2020 season. Just how much depends on how much of their current $2.9 million in space is used.

The cap is almost certainly going to rise, either by increased revenue or by the NHLPA invoking the escalator (artificially increasing the cap by 5%). But there is always the possibility that the NHLPA does not invoke the escalator (they’ve done that once in the salary cap era and other times increasing it by less then 5%). Hayes will come off the books, but it still leaves a tad more then $3 million in dead money from the Seidenberg buyout and Beleskey trade.

According to CapFriendly, the Bruins have $16.5 million in cap space for 2019-2020 (if the cap remains stagnant) with 16 players on the roster. Some of those spots could be filled with prospects making the jump from Providence.

But the Bruins have to dish out new contracts to McAvoy, Carlo, Heinen and Donato. And if Big Z decides he wants to play another season, well, that pretty much eats up that $16.5 million with two roster spots left to fill. The problem still lies with how much bonus overage there is going forward and that $16.5 million is directly influenced by that figure.

But, the cap will rise. Whether it rises enough is anyone’s guess.

In the end, there are a lot of “ifs” when looking beyond the upcoming season. The only definitive answer I can give you now is that Sweeney and Gold will get it done.