Saturday, August 01, 2009

NHL investigating the Hossa contract

Word has been leaked that the NHL is looking at the contract Marian Hossa signed with the Chicago Blackhawks. All I can say is what took them so long? The 12-year contract runs well beyond Hossa's 40th birthday and let's face it few players are still in the NHL at that age. Now the collective agreement sets out that the cap hit over the length of a contract is the total amount divided by the number of years. In Hossa's case, his $62.8 million contract translate into a cap hit of $5.2 million. However, his salary is front-end loaded. But knock off his final 5 years in which he is only paid a total of $8.5 million and his average salary jumps to $7.9. So Chicago is getting an $8 million player with a cap hit of only $5 million. Chicago can buy out the final few years with little impact on their cap. If you sign 2 or 3 more contract like this and it turns your $56 million into over $60 million. It's just plain cheating and a huge loophole in the collective agreement. But Chicago isn't the only team exploiting this loophole. As a result, big market teams can still outspend small market teams who are unlikely to have the money for contracts like this.

Player

Contract

Length

Cap Hit

(millions)

Adjusted

Avg. Salary*

(millions)

Hossa

12

$5.233

$7.9

Briere

8

$6.5

$7.5

Pronger

7

$4.86

$7.35

Zetterberg

12

$6.083

$7.52

Franzen

11

$3.955

$5.17

Lecavlier

11

$7.27

$9.8

Horcroff

6

$5.5

$6.5


* Adjusted average salary excludes last years of contract