Welcome back to all Derek Stepan TV all the time. After a momentary break, we return to our main story for the Rangers, what will happen with Stepan. Arb hearings and/or contracts for J.T. Miller and Jesper Fast along with what might happen on the blue line all revolve around how this situation plays out.
Larry Brooks wrote today that the arbitration hearing between Stepan and the Rangers is set for July 27. He added that "We’re told talks between the parties haven’t quite even reached the preliminary stages of negotiating, with the Blueshirts yet to submit an opening proposal for a long-term deal to their 25-year-old center."
Elliotte Freedman added earlier in the week in his 30 thoughts: "Stepan can’t use Ryan O’Reilly’s contract as an arbitration comparable, because it takes effect when the Sabre becomes unrestricted. UFA deals cannot be used in those hearings for RFAs. But the Rangers know it is absolutely a factor in any long-term negotiation"
In essence, the $7.25 AAV for seven years is "officially" off the table for the arb hearings but if NY wants to sign him long-term, it will be a factor. This of course makes complete sense, but in the arb hearing, the original deal ROR signed can for $6 mil per and likely will be used a bridging off point for Stepan and his agent. The Rangers' cap space is what's driving this possible collision of want vs. need and cash readiness vs. freeing up room.
Let's put it this, if signing Stepan for close to $7 mil per would leave enough room under the cap to get the aforementioned RFAs signed and leave some additional space, don't we all thing a deal might already be done? But because of questionable signings or at least ones that took up more room than they should have, the team is in a major crunch. This has prompted all the rumors of Kevin Klein and his $2.9 million salary getting dealt or Keith Yandle and his low $2.625 cap hit to the Rangers being on the block. Add in the suggestions to deal Dan Girardi ($5.5 mil) or Marc Staal ($5.7 mil) or Tanner Glass ($1.45 mil) and it's easy to see why NY has been shopping at the dollar store in free agency or just window shopping.
With the talks having failed to really kick off, as Brooks writes, "it is impossible to predict whether the sides actually will get to a hearing that would yield a two-year award and would take Stepan to the cusp of unrestricted free agency. But if GM Jeff Gorton wants to avoid one and keep the Blueblood in a Blueshirt beyond 2017, it likely will take an opening bid of six years at $39 million ($6.5 million per season) just to get the ball rolling."
I would love a two-year deal at around $6.5 mil per with the implicit agreement to up that deal when the NY rolls around, so that the cap hit is pushed to the future when space is available. The main issue of a possible cap hit is now. Dan Boyle and his $4.5 mil is off the books after this year, likely replaced by Brady Skjei. But, that savings will be somewhat but hopefully not completely offset largely by having to re-sign Chris Kreider ($2.475 mil) and Kevin Hayes (900k). For those suggesting dealing Stepan and making Hayes the #2 center, please stop, as Hayes is not yet ready for that role and likely maybe be better suited to play wing.
The next two weeks should be very interesting in Rangers' land where once again $ dominate the conversation.