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A bit about Zetterberg’s contract from Provenzano

The Athletic's Frank Provenzano examines whether Henrik Zetterberg's contract will be a millstone upon the Wings' salary cap if Zetterberg does indeed choose to retire before the final season of his deal:

If Zetterberg was speaking from the heart when he was quoted by Swedish media as saying he probably only had one or two more years left in him, the cap penalty to the Red Wings on a 2019 off-season retirement would be just over $5M by my calculations. It will be hard for Detroit to maneuver out of this penalty with Zetterberg on the record regarding his intent, since this is exactly the scenario the NHL was looking to punish when they came up with the recapture rule. With a cap penalty like this hanging over his head, it will also be next to impossible to even entertain the idea of trading him for future value if Detroit decides to go into full rebuild mode.

Can they get out of it? Past precedents might lead one to believe there’s a chance. The New Jersey Devils were able to avoid recapture on Ilya Kovalchuk’s 15-year contract when he “retired” to the KHL, but they had already paid a fine and forfeited a draft pick and there was a sense that the NHL didn’t want to continue to punish the new ownership group for the transgressions of the previous regime. The Blackhawks are expected to put Marian Hossa on long-term injured reserve (thus avoiding the recapture penalty) once the season starts due to a progressive skin disorder. While the cynic in me questions the timing of Hossa’s medical diagnosis (it happens to coincide with his contract dropping to $1 million in actual salary), he is also NOT quoted in the media talking about retirement.

Provenzano continues (paywall), and the price of doing salary cap-bending business is high...

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Comments

ilovehomers's avatar

Honestly, I don’t think this provided any new insight.

As a paying subscriber, I’d rather see these articles dig into (even if it is hard to project) what the Wings will actually do when Z retires. Who will be rebuilding to the point that they might take on his contract, and what would it cost?

Is the fantasy of Z leaving out on IR really a possibility, considering he played all of last season, and some serious minutes? Is Z, like Hossa and Datsyuk, hanging on by a thread - then we let that thread break when his salary drops to laughable points.

Posted by ilovehomers on 09/12/17 at 10:49 AM ET

Colin's avatar

Who will be rebuilding to the point that they might take on his contract, and what would it cost?

Is the fantasy of Z leaving out on IR really a possibility, considering he played all of last season, and some serious minutes? Is Z, like Hossa and Datsyuk, hanging on by a thread - then we let that thread break when his salary drops to laughable points.

Posted by ilovehomers on 09/12/17 at 11:49 AM ET

Cap recapture stays with the team he signed with. So moving his contract won’t help us. If you want to avoid any cap hit from Z leaving, it must be through LTIR. Otherwise you are looking at recapture, but we would still end up with an extra million in cap space anyway.

Posted by Colin from Ken Holland's new yacht, "Incompetence" on 09/12/17 at 10:57 AM ET

ilovehomers's avatar

Preferably, then, we trade ZBerg’s contract/LTIR to another team that doesnt mind operating with 6 mil of dead cap hit on them. Teams can be 10% above the cap before the season (when you can actually use LTIR).

Maybe there is a team that can take on that 6 mil cap hit and not be constrained like we are now with AA/Franzen.

If KH is going to stay and be a cap team…we’ll need to dump Z-Berg.

If someone come sin and slashes salary, we could just hold onto him.

Posted by ilovehomers on 09/12/17 at 11:10 AM ET

Colin's avatar

Posted by ilovehomers on 09/12/17 at 12:10 PM ET

I just don’t know if it is necessary.

Franzen (2020), Kronwall (2019), and Ericsson (2020) will all be off the books by the time Z will likely want to retire (2019-2020 offseasons), so I don’t see the problem with just placing him on LTIR while keeping the contract in place. It just doesn’t seem worth it to me to sacrifice assets just to void a cap hit that can easily be placed on IR. Consider that even if Z chooses to leave in the 2019 offseason, we will likely only have ~$1-1.5m in cap space that couldn’t be covered on LTIR that season.

Posted by Colin from Ken Holland's new yacht, "Incompetence" on 09/12/17 at 11:28 AM ET

Down River Dan's avatar

If you want to avoid any cap hit from Z leaving, it must be through LTIR.

Well, here’s hoping they come up with something better than Hossa’s “...I’m alergic to my equipment…”.  sick  confused

Posted by Down River Dan on 09/12/17 at 11:54 AM ET

ilovehomers's avatar

All duly noted Colin, but I think there has to be a legitimate reason for him to end up on LTIR. And when he plays a whole season…that doesn’t help.

And we don’t know who will be the GM and if they continue to be a cap team. Holland, with his track record, may well extend Howie for another 4 years.

Ugh.

Posted by ilovehomers on 09/12/17 at 12:41 PM ET

Avatar

I like Homers idea to trade Zee so we don’t have to face recapture. Oh wait, nevermind. That’s only been discussed a million times…

Posted by fatsavage on 09/12/17 at 01:05 PM ET

Avatar

——-I just don’t know if it is necessary.
——If KH still a GM, it will be necessary. He will find some grinders to give $4 mil to.

Posted by VPalmer on 09/12/17 at 06:21 PM ET

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The Malik Report is a destination for all things Red Wings-related. I offer biased, perhaps unprofessional-at-times and verbose coverage of my favorite team, their prospects and developmental affiliates. I've joined the Kukla's Korner family with five years of blogging under my belt, and I hope you'll find almost everything you need to follow your Red Wings at a place where all opinions are created equal and we're all friends, talking about hockey and the team we love to follow.

 

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