The Anaheim Ducks Could Hit A Financial Obstacle
The NHL could be facing a problem shortly that may hinder the ability of many general managers to get deals done with key players. The problem is not stemming from a lack of salary cap space necessarily and not from a lack of the GM’s willingness to re-sign the players, but a particular financial issue is presenting itself.
The issue? The value of the Canadian dollar has diminished.
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Last summer, the Canadian dollar was trading at around 95 cents in comparison to the U.S. dollar. The Hockey News’ senior writer Ken Campbell points out in his recent article that as of this week the Canadian dollar is trading at around 75 cents compared to the U.S. dollar. The reason for that, as Campbell pointed out, is a possible recession up north which would directly affect the NHL’s salary cap for the ’16-’17 season.
We have already seen this issue run its course as some projections for this upcoming season’s salary cap claimed it could hit $72 million and possibly even higher than that. It did not reach those numbers however and the cap for the ’15-’16 season is set for $71.4 million, just a $2.4 million dollar raise from the ’14-’15 season’s cap.
With this recent news of the Canadian dollar struggling, should we now expect the salary cap for the ’16-’17 season to jump less than $2.5 million for the second year in a row?
This uncertainty is creating issues for every general manager in the league and more specifically those GM’s with franchise type players needing contract extensions before July 1, 2016.
This issue is hitting Southern California particularly hard.
Los Angeles Kings GM Dean Lombardi needs to get a deal done with his number one center Anze Kopitar, and Anaheim Ducks GM Bob Murray would like to get a deal done soon with future number one defensemen Hampus Lindholm.
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For Lombardi, there is much more uncertainty as he has the Slava Voynov and Mike Richards situations to deal with first. None the less, the biggest hold up is the uncertainty of what the Canadian economy’s effect on the salary cap will be.
For Murray, he has several young players hitting restricted free agency next summer but none are more important than Hampus Lindholm. Murray took a gamble on Ryan Kesler by giving him a big 6 year $41.25 million dollar contract (cap hit of $6.875 million). He then re-signed two of his restricted free agents, Jakob Silfverberg (cap hit of $3.75 million) and Carl Hagelin (cap hit of $4 million).
Lindholm is due to make a bit more than $4 million a year, however. He has shown signs of becoming one of the games next elite defensemen and Marc Spector of Sportsnet has even gone as far as to put Lindholm’s name in the same conversation as Nicklas Lidstrom, Erik Karlsson and Victor Hedman.
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At this moment, The Kings have a little over $50 million committed to the cap for the ’16-’17 season. Let’s assume the Canadian economy causes the NHL salary cap to only rise $2.4 million again and that the ’16-’17 salary cap will lock in at $73.8 million. So the Kings would have roughly $22-$23 million in cap space next summer. Milan Lucic needs a new contract after this season, and so does Trevor Lewis. Beyond that, Tanner Pearson and Tyler Toffoli need new deals by July 1, 2017.
So what can Dean Lombardi do about the Kopitar extension at the moment? Well, he can take a gamble and give Kopitar what he deserves, a deal in the ballpark of $7-$8 million a year. Lombardi could also play the waiting game that could be a dangerous and risky move because Kopitar reportedly has no desire to discuss a deal during the season.
The Ducks and Bob Murray have a little over $49 million committed to the cap for ’16-’17 season. Under the previous assumption that the cap only rises to around $73.8 million, then the Ducks would likely have $23-$25 million in cap space. Rickard Rakell, Sami Vatanen, Simon Despres, Jiri Sekac, John Gibson and Freddie Andersen are the young talented restricted free agents needing new deals next summer along with Lindholm.
So what does Murray do about Lindholm right now? He can give him his deserved deal of about $5-$5.5 million a year, a deal that would lock up Lindholm and secure him as the future of the Ducks blueline. Murray could also play the waiting game that wouldn’t be the worst idea as Lindholm is a restricted free agent, unlike Kopitar, who will be unrestricted.
However, as we saw this summer with Brandon Saad and Dougie Hamilton, salary cap issues can change things drastically and create fear of an offer sheet. Lindholm could have a huge offer sheet target on his back next summer if Bob Murray does not lock him up before July 1, 2016, since so many other young Ducks’ players also need new deals.
Lindholm is probably willing to discuss a deal during the upcoming season however, and since we are still over a month away from the opening night, there is time.
The irony of it all is that the Canadian economy is delaying the decisions of the two Southern California franchises. Each team has a unique situation, but the general basis of it all remains the same, there is too much uncertainty to be continually spending money right now.
Salary Cap Info Via General Fanager
Next: Rickard Rakell Ready To Breakthrough For The Anaheim Ducks
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