Trade Rumors and Free Agent TalkTrade rumors, transactions, and free agent talk. Rumors must contain the word RUMOR in post title. Proposals must contain the word PROPOSAL in post title.
Franzen re-signs with Detroit for 11 years, $3.9M per
He might take a little less ($7 million instead of 8 million) to stay in a winning situation, but 4.2 mil
If its front loaded and the same length as Zs or Franzens contract I wouldn't be surprised. This is Ken Holland we are talking about, anything could happen.
Isn't there a rule regarding contract depreciation numbers and how steep a contract can depreciate from season to season? Some of these numbers i'm looking at as estimates seem to have his contract fall off the face of the world after the 4th or 5th season. I think the transition has to be smoother than that in order to be accepted by the NHL's language.
I predict a $4.5 million cap hit for the duration of the contract with about $6 million up front in the first two years.
I think the organization has made its choice between Hossa and Franzen, to say the least. I don't think they can afford Hossa on the kind of deal he's going to want after this year. Detroit picked the lesser of the two players, but the one that really wanted to be there long term regardless of the financials. Hossa can sing a pretty fine tune, but at the end of the day he's not going to leave any money on the table. That goes double if he wins a Cup this year.
Isn't there a rule regarding contract depreciation numbers and how steep a contract can depreciate from season to season? Some of these numbers i'm looking at as estimates seem to have his contract fall off the face of the world after the 4th or 5th season. I think the transition has to be smoother than that in order to be accepted by the NHL's language.
I predict a $4.5 million cap hit for the duration of the contract with about $6 million up front in the first two years.
I think the organization has made its choice between Hossa and Franzen, to say the least. I don't think they can afford Hossa on the kind of deal he's going to want after this year. Detroit picked the lesser of the two players, but the one that really wanted to be there long term regardless of the financials. Hossa can sing a pretty fine tune, but at the end of the day he's not going to leave any money on the table. That goes double if he wins a Cup this year.
I'll admit that would be a poor contract. Fortunately, Holland has a better history than that so I hope the cap hit is a lot lower.
A multi-year contract can never decrease more than 50% of the first two years, whichever is lower, on a year-to-year basis. So if the first year is $6m and the 2nd is $5m - each year can never decrease more than $2.5m
These contract years are getting ridiculous. There will essentially be zero big time free agents in 4-5 years.
I actually love this trend. I miss the days when most player's spent the majority of their time with one team. At least now, they are not being forced into it.
I'd rather see the trend of contracts go in this direction rather than the huge salaries direction they were going in.
But this does inflate salaries and it allows richer teams to outbid smaller teams due to frontloading. It allows richer teams to circumvent the cap by paying their players more than their cap hit for most of the rest of their playing career.
Say Hossa signed a deal that was structured as follows: 13 years @ $69 million with salaries of 10,10,8,8,8,6,6,6,3,1,1,1,1 (or something like that, I'm not 100% on the allowable reduction in year to year salary). The cap hit would be $5.3 million a year, but he would likely be making an average of $8 million a year during his actual playing days. The extra years are tacked on because neither party could realistically see that player playing that long (to age 43 in this case), but it's to both parties' benefit to do it. If Hossa retired at age 38, he would have made $62 million in 8 years, which is equivalent to a contract with a cap hit of $7.75 million. He gets paid well and the richer team gets to spend beyond the cap so they can field a better team.
The simple way to "fix the loophole" is to make the cap hit of a contract based upon the most expensive year, not an average of all years. That way, frontloading, or backloading a contract hurts a team, not helps them, and causes contracts to more or less be even throughout whatever number of years the contract is for.
The simple way to "fix the loophole" is to make the cap hit of a contract based upon the most expensive year, not an average of all years. That way, frontloading, or backloading a contract hurts a team, not helps them, and causes contracts to more or less be even throughout whatever number of years the contract is for.
No, you just make the cap hit equal to that year's salary.
This signing completely destroys the Oilers' entire summer strategy.
Lol!!!
As someone who lives in Edmonton, I find your comment hilarious. The Oilers would have pursued this guy no doubt. Today's signing by Detroit just saves the Oilers disappointment 3 months in advance.
Everyone that claims that it is a loophole is just jealous that their teams aren't doing the same.
I wouldn't want to see the Leafs doing it. They're going to regret it if one or more of these players starts to struggle. These things happen.
For the people complaining about it though, the league has the authority to reject a contract if they decide its intent is to circumvent the cap. In a blatant case, they wouldn't be afraid to do it, and they could impose penalties.
I wouldn't want to see the Leafs doing it. They're going to regret it if one or more of these players starts to struggle. These things happen.
For the people complaining about it though, the league has the authority to reject a contract if they decide its intent is to circumvent the cap. In a blatant case, they wouldn't be afraid to do it, and they could impose penalties.
LOL at the guy who thinks Hossa will sign for a 4.2 mil cap hit. Hossa is a mercenary who likes 2 things: money, and winning.
He might take a little less ($7 million instead of 8 million) to stay in a winning situation, but 4.2 mil
I'm surprised front loading isn't done more.
Paying a guy 20 mil over 5 years has a cap hit of 4 mil:
8-5-4-2-1
Is worth a lot more than
4-4-4-4-4
Because the player gets his money a lot sooner, and can earn interest on it, so it's worth more in reality.
So you might get the player to take:
8-4-3-2-1. He is getting 18 mil over 5 years, for a cap hit of 3.6 mil, but the contract might be worth more than 20 mil over 5 because of the interest factor.
Alfie's new deal pays him I think only $1 million in the last year: maybe he'll retire, and it's a plan to reduce the cap hit as well.
Quote:
Originally Posted by X8oD
Like they did Zetterburg
9 years
6, 5, 4, 3, 2, 2, 1, 1, 1
25 million over 9 years. 2.8 Cap hit. Im just guessing, these are in no way real numbers.
Quote:
Originally Posted by solo16
Lower imo... closer to 3 or it wouldnt be 10 years.
5-5-4-4-3-2-2-1-1= 3.0M or so.
Quote:
Originally Posted by r0bert8841
Detroit has to take advantage of this loophole before they change the rules.
Im hoping its more like 4-4-4-4-2-2-1-1-1-1=2.4 cap hit.
Then i hope something similar for Hossa with 8-8-6-6-4-4-2-2-1-1=4.2 cap hit
Now Detroit has plenty of cap room for all their other Free agents like Hudler, Leino, Kope, etc...
Quote:
Originally Posted by opendoor
But this does inflate salaries and it allows richer teams to outbid smaller teams due to frontloading. It allows richer teams to circumvent the cap by paying their players more than their cap hit for most of the rest of their playing career.
Say Hossa signed a deal that was structured as follows: 13 years @ $69 million with salaries of 10,10,8,8,8,6,6,6,3,1,1,1,1 (or something like that, I'm not 100% on the allowable reduction in year to year salary). The cap hit would be $5.3 million a year, but he would likely be making an average of $8 million a year during his actual playing days. The extra years are tacked on because neither party could realistically see that player playing that long (to age 43 in this case), but it's to both parties' benefit to do it. If Hossa retired at age 38, he would have made $62 million in 8 years, which is equivalent to a contract with a cap hit of $7.75 million. He gets paid well and the richer team gets to spend beyond the cap so they can field a better team.
None of these salary proposals are legal under the CBA. Remember what we learned from the Erat contract? The '100 per cent rule,' which effectively states there cannot be a reduction of the total compensation from any given year over a three-year period by more than 100 per cent.
None of these salary proposals are legal under the CBA. Remember what we learned from the Erat contract? The '100 per cent rule,' which effectively states there cannot be a reduction of the total compensation from any given year over a three-year period by more than 100 per cent.
Completely incorrect, or half the contracts being signed nowadays would be illegal. Take a look at Lecavalier's and Zetterberg's contracts. Every one of those posted was legal.
None of these salary proposals are legal under the CBA. Remember what we learned from the Erat contract? The '100 per cent rule,' which effectively states there cannot be a reduction of the total compensation from any given year over a three-year period by more than 100 per cent.
All of the proposed deals are legal. There's no "three year period" requirement.
The "100 percent rule" key points:
- First two years of the contract salary cannot differ by more than the lower of those first two years.
- Subsequent years the salary cannot increase or decrease from year to year more than 50% of the lower of the first two years.
I'm not going to judge holland until I see the actual contract, but man 9-10 years is WAYY too long in my opinion for a guy who isn't even part of the core.
Then what would be the core? Zetterberg, Datsyuk, Kronwall and who else?
Franzen is one of my favorite players, and everytime I see Detroit play he shows why he's such a valuable guy.
There should be no secret as to the term, it's just Wings management trying to keep the cap hit down. Would be surprised to see the cap hit over $3.5 million. As for posters saying it's a 'loop-hole', actually in no such way it is a loophole. This is in some part playing with fire, I can think of a few ways deals like this can turn around the bite Detroit in the butt.
Either way though, great job by Detroit locking up a key player for their future.
Ifs funny cause you can tell who here are red wings fans and who arent.
Non red wing fan (one who doesnt see franzen play game by game)
10 years for Franzen!!! Are you $%^$ing kidding me!!
Red wings fan (one who sees how good franzen really is and understands the contract)
the last few years of the contract will be for 1 million a year meaning the sole reason for that many years is to reduce the cap hit. This is most likely a 6 year contract. People see 10 years and freak out when really its a nonissue
All of the proposed deals are legal. There's no "three year period" requirement.
The "100 percent rule" key points:
- First two years of the contract salary cannot differ by more than the lower of those first two years.
- Subsequent years the salary cannot increase or decrease from year to year more than 50% of the lower of the first two years.
I knew someone smarter than me would correct me if I was wrong
