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Forums :: Blog World :: Michael Pachla: Some fireworks over the Ryan O'Reilly contract
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Sabresfan-365
Buffalo Sabres
Location: Lockport, NY
Joined: 12.09.2012

Jul 4 @ 11:58 AM ET
A team that ranked 21st in revenue and has an operating income of 4.4 million has to pay a player 45.5 million dollars of a total contract that is value at 52.5 million.

Thanks for causing the next lockout.

- blacksheep1


Jackets operating income is -6.3 mil....they're paying saad big money based on one big year
puckhead17
Philadelphia Flyers
Location: Old Time Hockey
Joined: 08.14.2011

Jul 4 @ 11:58 AM ET
The Peds didn't offer that contract. The Flyers forced their hand. Not really the same thing. While the contract is similar structured to ROR, the league gets to reclaim some of the escrow in years 2016-2022.
- blacksheep1


No I understand the flyers forced their hand, but doing so because they felt, (small revenue market, budgeted ownership), they felt they couldn't match it.
So reclaiming the escrow means they can "back charge" him to pay? Meaning its not escrow protected?
Am I saying that right?
BigStew
Buffalo Sabres
Joined: 05.09.2007

Jul 4 @ 11:59 AM ET
Pegula ain't paying this out of own pocket.
- blacksheep1


Of course he isn't, all his other businesses are. I don't live in Buffalo but it appears he is trying to revitalize the city and the area around the stadium. A successful hockey team goes a long way in accomplishing his goals in other areas.
Prospy1493
Buffalo Sabres
Joined: 07.19.2012

Jul 4 @ 11:59 AM ET
It'll be interesting to see if the league shuts this down quickly or if it becomes a regular demand from all free agents moving forward. I doubt we make it to the end of the current cba without another lockout. If this does become a regular demand for free agents I can see the players voting against the 5% escalator next year and the cap dropping.
- Isles_since_6


You do know that this isnt the first deal like that, Clarkson has the same structure to his deal but no one was saying poop about it before
Sabresfan-365
Buffalo Sabres
Location: Lockport, NY
Joined: 12.09.2012

Jul 4 @ 11:59 AM ET
It'll be interesting to see if the league shuts this down quickly or if it becomes a regular demand from all free agents moving forward. I doubt we make it to the end of the current cba without another lockout. If this does become a regular demand for free agents I can see the players voting against the 5% escalator next year and the cap dropping.
- Isles_since_6



I'd bet anything the moment the moment that contract was announced the first call to murray was from the league office. I'm actually a little surprised they ok'd it.
TWGsabres
Joined: 06.26.2013

Jul 4 @ 12:00 PM ET
The kovalchuk contract was within the cba parameters but was against the spirit of the cba

They closed that loophole supposedly but we shall see and nothing will come of it

- dmarsden2988

This is false.
The Kovy contract was an attempt to lower the players AAV, thereby giving NJ an advantage over other teams given there was no commitment in seeing the contract through to the end. I believe the term one owners lawyer used was "product competitive circumvention". Basically calling NJ dishonest in its on ice product.

That is nowhere near the case here as the AAV is on a 7 year stretch wherein on the back side the player is still very much serviceable.

In the end. This will stand, you'll see.
BigStew
Buffalo Sabres
Joined: 05.09.2007

Jul 4 @ 12:00 PM ET
I'd bet anything the moment the moment that contract was announced the first call to murray was from the league office. I'm actually a little surprised they ok'd it.
- Sabresfan-365


I'd be shocked it they didn't talk to the league before they signed it.
blacksheep1
New York Rangers
Location: Handsome Eddy, IA
Joined: 07.30.2010

Jul 4 @ 12:03 PM ET
Jackets operating income is -6.3 mil....they're paying saad big money based on one big year
- Sabresfan-365

Brandon Saad signing bonus? The amount begins with a Z and in ERO. Also his contract is backloaded. Meaning the Jackets are banking on him getting better.


Not at all the same. Good try though.
puckhead17
Philadelphia Flyers
Location: Old Time Hockey
Joined: 08.14.2011

Jul 4 @ 12:03 PM ET
This is false.
The Kovy contract was an attempt to lower the players AAV, thereby giving NJ an advantage over other teams given there was no commitment in seeing the contract through to the end. I believe the term one owners lawyer used was "product competitive circumvention". Basically calling NJ dishonest in its on ice product.

That is nowhere near the case here as the AAV is on a 7 year stretch wherein on the back side the player is still very much serviceable.

In the end. This will stand, you'll see.

- TWGsabres


Because ROR's caphit is still the same every season, even the last year.
Edit no cap circumvention, but a different circumvention altogether.
puckhead17
Philadelphia Flyers
Location: Old Time Hockey
Joined: 08.14.2011

Jul 4 @ 12:05 PM ET
Brandon Saad signing bonus? The amount begins with a Z and in ERO. Also his contract is backloaded. Meaning the Jackets are banking on him getting better.


Not at all the same. Good try though.

- blacksheep1


His salary is higher in years 3-6.
blacksheep1
New York Rangers
Location: Handsome Eddy, IA
Joined: 07.30.2010

Jul 4 @ 12:09 PM ET
His salary is higher in years 3-6.
- puckhead17

Yes because ROR get's 22 million of the 52.5 million in years 1 and 2.

The buyout #'s

http://www.generalfanager.com/buyouts/588

http://www.generalfanager.com/buyouts/526

Saad's buyout would never vary more than ~850,000. See the difference.
homiedclown
Buffalo Sabres
Location: We want 1, FL
Joined: 02.24.2008

Jul 4 @ 12:10 PM ET
A team that ranked 21st in revenue and has an operating income of 4.4 million has to pay a player 45.5 million dollars of a total contract that is value at 52.5 million.

Thanks for causing the next lockout.

- blacksheep1

thank the habs and hawks

those teams drove the price up


but thanks for stopping by
theblueandgold
Buffalo Sabres
Location: Denzel, WA
Joined: 03.05.2009

Jul 4 @ 12:12 PM ET
Why is everyone saying this hasn't been done before? Very similar to the Clarkson contract where he makes $1-2M in base salary and the rest are signing bonus. Which was probably contrived from Shea Weber contract where the first 4 years he makes $1M base salary with $$13M in signing bonus.

This isn't unprecedented.
puckhead17
Philadelphia Flyers
Location: Old Time Hockey
Joined: 08.14.2011

Jul 4 @ 12:12 PM ET
Yes because ROR get's 22 million of the 52.5 million in years 1 and 2.

The buyout #'s

http://www.generalfanager.com/buyouts/588

http://www.generalfanager.com/buyouts/526

Saad's buyout would never vary more than ~850,000. See the difference.

- blacksheep1


Can the NHLPA squash this contract? The league wouldn't care, because they are still getting their escrow $.
Albeit, more from all the other players, essentially, it's like the other players are paying his escrow %?
BigStew
Buffalo Sabres
Joined: 05.09.2007

Jul 4 @ 12:12 PM ET
Yes because ROR get's 22 million of the 52.5 million in years 1 and 2.

The buyout #'s

http://www.generalfanager.com/buyouts/588

http://www.generalfanager.com/buyouts/526

Saad's buyout would never vary more than ~850,000. See the difference.

- blacksheep1


In all honesty, who cares what the buyouts are, not really sure you go into contracts like this expecting to buy the guy out. Most of us are happy with getting ROR, you seem happy about Saad, not really sure why all the hate for paying the guy up front as its well within the structure of the CBA and not all that different than some of the contract over the last couple year.
homiedclown
Buffalo Sabres
Location: We want 1, FL
Joined: 02.24.2008

Jul 4 @ 12:13 PM ET
Yes because ROR get's 22 million of the 52.5 million in years 1 and 2.

The buyout #'s

http://www.generalfanager.com/buyouts/588

http://www.generalfanager.com/buyouts/526

Saad's buyout would never vary more than ~850,000. See the difference.

- blacksheep1

what's your point?

if you have a bunch of young players coming up that are going to get paid well 3 or 4 years down the road, you want to pay up front on this deal


your acting line ROR is 30 years old already


and let me give you a math example to help simplify things for you


if a first line player is getting paid 10.5 mil, a really good young second line player with upside is getting 7.5 mil or roughly 70% of what the first line player is getting


so what the (frank) is your problem?


drink more
post less
blacksheep1
New York Rangers
Location: Handsome Eddy, IA
Joined: 07.30.2010

Jul 4 @ 12:13 PM ET
thank the habs and hawks

those teams drove the price up


but thanks for stopping by

- homiedclown

I assume the you mean PK Subban's deal. A contract in which the signing bonus is never higher than his Salary. So the league can collect escrow.

Again not the same.
BigStew
Buffalo Sabres
Joined: 05.09.2007

Jul 4 @ 12:14 PM ET
Can the NHLPA squash this interact? The league wouldn't care, because they are still getting their escrow $.
Albeit, more from all the other players, essentially, it's like the other players are paying his escrow %?

- puckhead17


Not sure the NHLPA is going to squash a contract that drive us pay for its members.
puckhead17
Philadelphia Flyers
Location: Old Time Hockey
Joined: 08.14.2011

Jul 4 @ 12:15 PM ET
Not sure the NHLPA is going to squash a contract that drive us pay for its members.
- BigStew


No, but for one guy?
But it's circumventing, not the league, but basically screws all other players within the union.
All players already locked in are paying higher escrow, because of his front loaded bonuses
BigStew
Buffalo Sabres
Joined: 05.09.2007

Jul 4 @ 12:17 PM ET
But it's circumventing, not the league, but basically screws all other players within the union.
- puckhead17


While driving up contract prices, the NHLPA could care less about 80% of their members, all they care about is driving up player contracts and guys spending to the upper cap limit.
homiedclown
Buffalo Sabres
Location: We want 1, FL
Joined: 02.24.2008

Jul 4 @ 12:18 PM ET
I assume the you mean PK Subban's deal. A contract in which the signing bonus is never higher than his Salary. So the league can collect escrow.

Again not the same.

- blacksheep1

pegula's job is to worry about his players first, the fans second and the league third


he is not breaking the rules, so again what is your problem?


this isn't the stone age, you have to adapt and be creative on the fly

I am sure he has a cap expert that told him it's better to pay up front since this player will not be bought out
BigStew
Buffalo Sabres
Joined: 05.09.2007

Jul 4 @ 12:18 PM ET
No, but for one guy?
But it's circumventing, not the league, but basically screws all other players within the union.
All players already locked in are paying higher escrow, because of his front loaded bonuses

- puckhead17


Everyone says we paid to much for ROR, that is the main goal of the NHLPA, get its top guys paid.
theblueandgold
Buffalo Sabres
Location: Denzel, WA
Joined: 03.05.2009

Jul 4 @ 12:19 PM ET
No, but for one guy?
But it's circumventing, not the league, but basically screws all other players within the union.
All players already locked in are paying higher escrow, because of his front loaded bonuses

- puckhead17


Nobody had a problem with Shea Weber making $14M a year for the first 4 years of his contract with $1M base salary for escrow, why the stink about ROR now? Get a clue.
homiedclown
Buffalo Sabres
Location: We want 1, FL
Joined: 02.24.2008

Jul 4 @ 12:19 PM ET
Everyone says we paid to much for ROR, that is the main goal of the NHLPA, get its top guys paid.
- BigStew

yup


the union has no problem phasing down the contracts of the older players
Panthers88
Florida Panthers
Location: It's gonna be a long one.., FL
Joined: 07.21.2009

Jul 4 @ 12:20 PM ET
All this money being tossed around, can't wait for the next lock out!

Some sort of damn performance based pay system needs to be put in place.
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