from Chris Johnston of Sportsnet,

In a bizarre twist to an already unusual story, Sportsnet.ca has discovered that the Flames were not only in danger of losing 2013 first- and third-round draft picks as compensation if the Avs hadn’t matched the O’Reilly contract, but they also would likely have had to surrender the player before ever getting him in uniform.

That’s because O’Reilly would have needed to clear waivers before joining the team’s roster.

The unsigned forward spent part of the NHL lockout playing with his brother, Cal, for Magnitogorsk in Russia. According to Metallurg coach Paul Maurice and KHL spokesman Shawn McBride, he appeared in games on Jan. 21 and Jan. 23 – both after the shortened NHL schedule was back underway – which meant that waivers were required before O’Reilly could return to the NHL as a free agent midway through the season.

read on

added 2:11pm,

Chris Johnston joined Sportsnet's Hockey Central today to discuss all the scenarios that could have played out if Colorado did not mach the offer sheet.

Watch below and it looks like some of the Sportsne video can be embedded again.