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.