Impossible Contracts Lie Ahead For NHL GMs

Teams have already begun the process of evaluating their rosters to determine what changes need to be made by the time the puck drops on the 2010-11 season. The time for upgrading talent will come at the end of June via the draft and at the start of free agency on July 1. But the most immediate part of the process for NHL general managers is to determine what dead weight should be shed from their respective organizations. Who needs to be let go, and how should they be discarded?

The most difficult situations for general managers to deal with when it comes to needing roster and cap relief is when the particular player they are looking to unload comes along with an inconvenient contract. Players who haven’t performed up to expectations and have large contracts will likely go unclaimed through the waiver process and are going to be tough sells to other general managers through the trade route. Though the latter is not impossible – just as Glen Sather about Scott Gomez.

The buyout process is another option for general managers, and the two-week window where that is allowable began today. According to TSN, the Edmonton Oilers, Ottawa Senators and Montreal Canadiens are each expected to explore that avenue with one or more of their players. But for players with a lot of money still owed, and several years accompanying it, buyouts can become a bigger burden to an organization. Teams will still owe a player two-thirds of the remaining money left on his contract (or one-third for those 26 years of age and younger) over double the amount of time left on the deal. And that’s not ideal for teams who want to spend as much as possible on players that will actually suit up for the team.

Then there’s this new revelation that hasn’t really been put into practice about simply demoting a player to the minors so that they don’t play for the NHL club and their salary doesn’t count against the cap. In theory, that sounds tremendous. But I don’t really think that method has been adopted by many teams thus far. And that’s probably out of respect for the player.

A few players around the league carry with them impossible contracts. They cannot be easily waived or traded, nor does it make financial sense overall or for the cap to pursue a buyout. Instead, teams seem stuck with these deals unless the general manager can get really creative or find a sucker somewhere amongst the other 29 squads.


Here are some of the players, and accompanying contracts, that present the biggest obstacles to their teams’ GMs:

Tim Thomas, Goalie (Boston Bruins) – three years remaining on a four-year, $20 million deal ($5 million cap hit): When he finally emerged on the scene in the NHL at the ripe age of 31, Tim Thomas became an instant hit for the Boston Bruins. He was a minor leaguer for most of his career, and only played net for the Bruins in four games prior to the lockout. But injuries to then starter Andrew Raycroft and Hannu Toivonen necessitated the call-up of Thomas to the big leagues. After a stellar campaign in which he earned 12 wins and sported a .917 save percentage, Thomas was awarded a three-year contract and became the bonafide No. 1 in Boston. And he earned it, becoming one of the most underrated goalies with 30, 28 and 36 wins over the next three seasons, respectively. His played earned him a new four-year deal for $20 million. Thomas is still a solid goaltender, but the Bruins wanted to make a long-term change for the future and have given over the starting duties to Tuukka Rask, who was eventually going get the job anyway. That, however, leaves the Bruins with a $5 million backup goalie. One would think teams would be gunning for a goalie of Thomas’ caliber, and the Bruins would probably be more than willing to let him go for the cap relief. But, for as great a story as it is that Thomas was able to get into the NHL in his 30s, it also means he’s no spring chicken. Thomas is 36 years old with a contract that doesn’t expire until he is 39. He’s entering the years where teams try to be a bit more cautious about how much money they toss at a player. If Thomas’ play hits a snag, then his new squad takes on the responsibility of having a very expensive backup. Or even worse, Thomas could retire with a $5 million cap hit still stuck against his team’s payroll, and no actual player to show for it. If a team very much in need for a No. 1 netminder is willing to take on the risk of Thomas’ age and has faith in his ability to live up to expectations over the remaining years of his contract, then general manager Peter Chiarelli should jump on the opportunity to unload him. But I don’t think finding a trade partner is going to be that easy.

Brian Campbell, Defenseman (Chicago Blackhawks) – six years remaining on an eight-year, $56.8 million contract ($7.14 million cap hit): It would be easy to assume all is great in Chicago with the Blackhawks winning the Stanley Cup. And I’m sure the city and the team have had their fair share of celebration. But reality is starting to kick in for the Blackhawks that they have some serious cutting that needs to be done in order to be ready next season. Some players are going to need to be dealt. And the ones Chicago would most like to get rid of are going to be the most impossible. Brian Campbell is one of the players. When the Blackhawks signed him back in the summer of 2008, he was viewed as the best defenseman on the market based on his time playing for the Buffalo Sabres. He received an astronomical $56.8 million over the course of eight season, which amounted to an annual salary and cap hit of about $7.1 million. Flash forward two years later, and other players have emerged as far more significant pieces to the Chicago blue line – not to mention cheaper. Duncan Keith is the undoubted leader of the Blackhawks defensive core, while Brent Seabrook and Niklas Hjalmarsson have developed into important compliment pieces. Frankly, Campbell isn’t necessary anymore. And for a team that needs to shed salary immediately, he is a top candidate on general manager Stan Bowman’s trade block. But that $7.14 million cap figure is a big turnoff to a lot of teams. And the fact that it’s for the next six years doesn’t make the task of dealing him off any easier.

Cristobal Huet, Goalie (Chicago Blackhawks) – two years remaining on a four-year, $22.5 million contract ($5.625 million cap hit): Right after, or maybe before, Campbell on the trade list for Bowman is goaltender Cristobal Huet. Huet is a great netminder when he is a backup or splits time with somebody in the No. 1 role. He just isn’t the kind of goalie that will carry the load in net for any team very efficiency. His play as the lone No. 1 is not nearly as good as when he’s No. 1A or No. 2. And that’s a problem, since the $5.625 million he makes annually is No. 1 money. He has already lost the top spot in Chicago thanks to the emerging play of Antti Niemi, who backstopped the Blackhawks to their Stanley Cup. But Niemi becomes a restricted free agent on July 1, and he wants starter money without offering Chicago a hometown discount. Quite simply, Huet has to get off the books for Niemi to be brought back. And since Huet isn’t exactly $5.625 million quality, that’s going to be very tough for Bowman. The rumor has been kicked around a bit, and perhaps there might be some truth to it. But this may just be a case where Chicago has no other choice but to demote Huet to the minors. That’s the only way I see them getting relief from his contract.

Rick DiPietro, Goalie (New York Islanders) – 11 years remaining on a 15-year, $67.5 million contract ($4.5 million cap hit): This contract is four years in and it’s still one of the most ridiculous things I’ve ever seen. He was still largely unproven at the time, but New York Islanders owner Charles Wang gave the thumbs up back in September 2006 to sign Rick DiPietro to a 15-year, $67.5 million contract. Nowadays, deals over 10 years are commonplace for many teams. But that was an asinine term back then, and it still is considering the return on the team’s investment. For the first year of the deal, DiPietro was actually pretty solid. In 2006-07, he went 32-19-9 with a 2.58 goals against average, .919 save percentage and five shutouts. But he slipped the next year and has only played a total of 13 games over the past two seasons due to injuries. The basic concept of this deal was to get DiPietro inked for the remainder of his NHL career and pay him just $4.5 million per year, which is actually pretty good in comparison to other starters around the league. But him remaining healthy was also part of the plan, and that didn’t quite work out. Now, it seems like the Islanders are playing him during those few moments when he is healthy just because they feel obligated based on the contract. And they’ll be playing that game for the next 11 years, because nobody is going to take this burden off their shoulders.

Wade Redden, Defenseman (New York Rangers) – four years remaining on a six-year, $39 million contract ($6.5 million cap hit): To say Wade Redden has been a disappointment since inking a $39 million, six-year deal with the New York Rangers two summers ago would be the understatement of the century. When the Rangers signed him to that contract, it was already after a few subpar seasons with the Ottawa Senators. And Glen Sather was just grasping for hope that Redden could return to form when he was a strong offensive producer and decent defensive asset for Ottawa. But that never did happen for Redden. He barely produces on the score sheet, failed to live up to the power play quarterback expectation he was figured to fill and has turned into a defensive liability at times. At this point, Redden is just there for no other reason than he is being paid $6.5 million a year. And unlike the miraculous dealing of Scott Gomez to the Montreal Canadiens last offseason, Redden is simply untradeable. At a cheaper price, some team would take a flier on him. But with four more years on this deal at such a high price tag, no team is going to bite. The Rangers are stuck with him, plain and simple. The idea of a buyout has been speculated, but that would cost $2.167 million against the cap each season over the next eight. That is simply too much to leave lingering for so long, especially for a team that utilizes its cap space like New York. The best thing the Rangers could do with Redden is just send him down to the AHL and hope he finds his game there while getting some cap relief.

Shawn Horcoff, Center (Edmonton Oilers) – five years remaining on a six-year, $33 million contract ($5.5 million cap hit): The Edmonton Oilers aren’t the worst team in the league for no reason. They have hit a downward spiral in recent years because they lack true start power on their team. In turn, they pay the few decent players on their roster more money than they’re actually worth. Shawn Horcoff is currently the highest-paid Oiler with an annual cap hit of $5.5 million per season, and is set to earn a salary of $6.5 million during the 2010-11 campaign. Yet, he has produced two consecutive seasons of mediocre offense in comparison to pay and possessed one of the worst plus/minus ratings in the NHL at a clip of minus-22 last season. A player making the kind of money he does has to be able to step up like he did back in 2005-06, when he posted 73 points. Even his almost point-per-game pace of 50 points in 53 games in 2007-08 would suffice. But a total of 30 goals between two years and a dismal defensive showing just won’t cut it. While Edmonton might utilize the buyout methods for other disappointments like Patrick O’Sullivan, who is entering the final year of a deal that pays him $2.388 and counts as a $2.925 cap hit, Horcoff’s contract is far too expensive for that. He would have to be dealt for it to make sense, and I can’t imagine too many teams wanting to sacrifice $5.5 million on a nine-year veteran who has justified that kind of pay in only two.