Why the Flyers Owe the Preds FOUR FIRST ROUND PICKS

July 18, 2012
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You need to check out Article 10.4 of the CBA. It states:

10.4 Draft Choice Compensation for Restricted Free Agents

[...] The number and quality of draft choices due [...] shall be based on the average annual value of the compensation contained in the Principal Terms (as defined in Section 10.3(e) hereof) of the New Club’s Offer Sheet (determined by dividing such compensation by the lesser of the number of years of the Offer Sheet or five).

You read that right. Or five. Hey, look: a clause in the CBA that kinda sorta anticipated the whole contract tail wagging the dog deal we’ve seen so much of (e.g. Kovalchuk, Luongo, Parise, etc.).

If the contract is indeed $100MM / 14 years, approx $7.1MM AAV, I have to wonder if the Flyers (who, if memory serves, didn’t realize they were offering Pronger a 35+ contract) don’t think that falls within the second to last category (see below), where they would only have to cough up two 1sts, one 2nd and one 3rd.

It doesn’t.

Because you don’t get to divide the $100 million by fourteen. According to to Article 10.4, you have to divide it by the smaller of the number of years in the contract (14) and 5. Which would be 5.

100 / 5 = $20MM.

That’s the highest compensation category (um, by almost 250%). Four 1st round picks.

If you’re interested, here are this year’s compensation numbers, courtesy of James Mirtle:

$1,110,249 or below – Nothing

Over $1,110,249 to $1,682,194 – 3rd round pick

Over $1,682,194 to $3,364,391 – 2nd round pick

Over $3,364,391 to $5,046,585 – 1st round pick, 3rd

Over $5,046,585 to $6,728,781 – 1st round pick, 2nd, 3rd

Over $6,728,781 To $8,410,976 – Two 1st Round Picks, 2nd, 3rd

Over $8,410,976 – Four 1st Round Picks

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Some posts the robot says are related, but I'll let you be the judge of that:

  1. Preds match: thoughts
  2. Preds respond to Flyers
  3. Shea Weber CBA offer sheet compensation CHEAT SHEET
  4. Kings’ have 6 or 7 picks in the upcoming 2012 draft
  5. And Dean Lombardi has not yet traded one of his own picks…
  6. Then shouldn’t we have the last four #1 Overall picks?
  7. FLYERS LIKELY WILL BE $AVED FROM OWN STUPIDITY – New York Post

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This entry was posted on July 18, 2012 at 11:43 PM and is filed under Latest. You can follow any responses to this entry through the RSS 2.0 feed.

  • Jack

    Well, I can’t remember the specifics, but didn’t Philly run into trouble trying to sign Tomas Hyka last season. Trouble that they didn’t expect due to his age or some such which is why the Kings were able to draft him. Remembering that, I wouldn’t be surprised if Holmgren assumed it wasn’t the 4 first rounders he’d be giving up.

    But in any case, it’s in Nashville’s court (or rink, I guess. Maybe o-zone?) now. Holmgren may have just helped them negotiate a long term contract with Weber. Doesn’t he have to accept if they choose to match?

    Then again, perhaps that’s what Weber wanted all along.

    • http://www.mcsorleys-stick.com/ Quisp

      Yes, the deal is set. Weber knows what he will be paid, and when, and for how long. He does not yet know WHO.

      • sstephen17

        Nashville will match. Losing Suter hurts but losing both of them would really put the team in a bind.

  • DougS

    Anyone laying down markers on what Nashville decides to do?

    On the one hand, with Suter already gone, letting Weber go as well basically signals that you’re rebuilding your defense corps and you’re not going to be a better team next season than you were last season. With Rinne under a long-term contract, it seems like an awkward time to go through even a partial rebuild.

    But OTOH, 4 1st round picks. If you trust your scouting staff, just think about what you could do with that….

    • Jack

      To me, it will really reveal where the ownership feels the team is at.

      They may recognize they’ve been getting deeper into the playoffs in consecutive years and Weber has been crucial to that. Fan response has been immense and if it can be sustained then the 14 years may be a sound investment, particularly if the new CBA kills off the ability to do these massive contracts.

      Or, they don’t match and reveal that they’re just not that financially capable of cost this massive. Haven’t seen the full numbers, but I’m going to assume the contract is massively front-loaded like usual, which is a big ask for a team that was only recently considered to run on a tight budget. This could have a big impact on how free agents see Nashville and even the fans, but perhaps the owners feel the flexibility of the picks is safer than bearing Weber’s huge cost. Banking it all on one player is a very risky move.

      As for losing Weber, Nashville has some good young D-men in Ellis and Josi, but obviously asking them to replace a constant Norris nominee and his stalwart partner is a massive task. But then again, maybe getting Ellis to sign a contract is a lot easier… :D http://www.youtube.com/watch?v=10zQ23C_Q9Q