TAKING CARE OF BUSINESS

Now that Peter Chiarelli has cost certainty on the McDavid deal (woot!) he can safely move on to the next major item: Signing Leon Draisaitl.

CHIARELLI SUMMER LIST

  1. Sign Connor McDavid(8 years, $100 million. $12.5 cap hit annually)
  2. Sign Leon Draisaitl(Still to come)
  3. Negotiate the expansion draft rapids without giving up a valuable piece of the future. (Griffin Reinhart)
  4. Find a way to trade Benoit Pouliot off the roster(Bought him out)
  5. Find a second pairing RHD with two-way acumen(Matt Benning) 
  6. Find a stopgap measure to replace Andrej Sekera’s minutes until he returns(Kris Russell)
  7. Find a C-R who can help the offense and cover off where Leon isn’t at the time and to replace Jordan Eberle if he’s dealt. (Ryan Strome)
  8. Make enough cap room to get everyone in under the number with enough room to spare for the trade deadline(Eberle and Pouliot)

That’s the summer. We have Leon to go and the cap room is there there is there’s someone out there who is of interest.

PROJECTED ROSTER 2017-18

The Oilers have room and Chiarelli will spend (imo) before or during the season to tweak the roster. Who could they add? Reports (Bob) have the Oilers looking for a player who “fits the team” and offers leadership. That could be anything and is deliberately vague, so not much we can do beyond list names until the cows come home. Speed was mentioned, so Brandon Pirri could be a guy to help. If we imagine the Chiarelli template for a Bruin Oiler, it’s pretty easy to see who might be of interest among forwards. Drew Stafford, Alex Chiasson, Jarome Iginla and Shane Doan are all physical wingers who can punish opponents. One area I think PC should be looking? Penalty kill. Here are the top PK men (by TOI per game) among free agent forwards:

  1. Daniel Winnik 2:31
  2. Chris VandeVelde 2:30
  3. Matt Cullen 2:19

I think Pirri and Franson are reasonable bets, Oilers probably end up with a big winger like the ones above.

Photo by Mark Williams

PAL JOEY

Joey Laleggia filed for arbitration today, not sure of the plan here. JL has a shot at spending time in the NHL this season, the contract basically writes itself. The one item about him (increased AHL offense) is a curio, but I’m not sure it gets him paid anything this summer.

MCDAVID

Reading a bunch of things online that are basically insane regarding 97”s contract. Here’s the deal. The outer marker was $15 million (I believe) and he settled for $12.5 million. Eight years, times 2.5, is $20 million. There will come a time when the best players in the game take what they’re worth, and when they do I’m sure we’ll hear even more howls than we have today.

It’s still ridiculous. If McDavid makes $15 million, he’s paid the maximum and a role player must take less money. This is a true fair market situation. What we have today is a class act showing all of us what matters to him. I hope he wins 12 Stanley’s, all in Edmonton.

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114 Responses to "TAKING CARE OF BUSINESS"

  1. Mike says:

    Absolutely right good Sir! Mcdavids contract is a steal!! Dollar’s don’t matter, only Location Location Location!!!

  2. Mike says:

    I have only one wish for the coming season, I truly hope to see nuge on MCD wing for 20 games. I honestly think that they would play off each other brilliantly.

  3. Rondo says:

    KENT WILSON gives his opinion on players you mentioned in the free agent market.

    https://flamesnation.ca/2017/07/05/wwyd-wednesday-sign-a-vet-or-promote-a-kid/

  4. Ducey says:

    I wouldn’t mind it if they took a chance on Alex Chia-sson. He is big, shoots right, skates very well and can maybe put up 30 points if he gets some offensive minutes. They could likely get him for about what he made last year ($800K). He was essentially playing third line minutes for Calgary last year and put up the same production as Bennett.

    Strome/ Leon
    Slepy
    Kassian
    Chiasson
    JP

  5. Professor Q says:

    Ducey,

    Plus, having Chia’s Son on the team would be excellent marketing potential.

  6. Todd Macallan says:

    Yamamoto scores 15 seconds into the Billy Moores Cup, again assisted by Gambardella.

  7. Mr. D. says:

    Interesting about buyout opportunity for FayNE. I think if they sign another D man soon then he gets bought out. They can bury a mill of cap when sending to the A at least get some benefit.

  8. stush18 says:

    LT are we not reporting about the oilers prospect camp?

    I find the info from this camp interesting if anything

  9. stush18 says:

    Ducey:
    I wouldn’t mind it if they took a chance on Alex Chia-sson. He is big, shoots right, skates very well and can maybe put up 30 points if he gets some offensive minutes. They could likely get him for about what he made last year ($800K). He was essentially playing third line minutes for Calgary last year and put up the same production as Bennett.

    Strome/ Leon
    Slepy
    Kassian
    Chiasson
    JP

    Yup. Try and force JP off the roster, and make him deliver in the AHL. Same goes for Yamamoto. No need to project this guy onto any roster other than his junior.

  10. Lowetide says:

    stush18:
    LT are we not reporting about the oilers prospect camp?

    I find the info from this camp interesting if anything

    I’m not sure who is up there. Bruce was going to go tonight, but couldn’t make it.

  11. Todd Macallan says:

    Lots of goals in the 4-on-4 format, Maksimov with 2 in the last few mins.

  12. Lowetide says:

    Terry Jones‏Verified account @byterryjones 2h2 hours ago
    More
    Now that McDavid is done, put me down for eight years at $7.9 million for Draisaitl.

  13. Lowetide says:

    Yamamoto with two, Maksimov now with a hat-trick.

  14. D says:

    I wonder if all the big mouths who were saying “Connor doesn’t want to be in Edmonton” or “Connor will never give Edmonton a hometown discount” will quiet down now.

  15. Centre of attention says:

    Goalies having a tough go. Yammy’s team wins 9-5 or something like that.

  16. Lowetide says:

    Three for Maksimov, two for Yamamoto and Safin. Good draft! 🙂

  17. Todd Macallan says:

    Sounds like the prospects are putting on a show (minus the goalies), hope there are some highlights from the game!

    Edit: 1st period highlights are up. Berglund sure looks like a player with the puck on his stick.

  18. Centre of attention says:

    Lowetide,

    That Maksimov kid is going to score 40 for Niagra this year.

    Safin was drafted by Saint John too, do you think he comes over? Have you heard anything on that front?

  19. N64 says:

    Lowetide:
    Terry Jones‏Verified account @byterryjones2h2 hours ago
    MoreNow that McDavid is done, put me down for eight years at $7.9 million for Draisaitl.

    Terry Jones @byterryjones

    Now on to Leon Draisaitl. I’m thinking maybe August 28

  20. godot10 says:

    Laleggia’s filing for arbitration does NOT open up another buyout window. He doesn’t and won’t make enough money to open another buyout window.

    The threshold is something like a $3 million dollar arbitration award…I’m not sure of the exact number but it is more than a couple of times what Laleggia is going to get.

  21. Lowetide says:

    Centre of attention:
    Lowetide,

    That Maksimovkid is going to score 40 for Niagra this year.

    Safin was drafted by Saint John too, do you think he comes over? Have you heard anything on that front?

    I haven’t heard, will reach out to Brock Otten.

  22. Richard S.S. says:

    Leon needs to convert to be a Center very soon. RNH has a lot of Teams interested. He could be traded at any time in the next 14-16 months. Leon needs to be a top Center soon.

    Each line needs a top Center, a speedy Scorer and someone like a Maroon, Lucic, Kassian.

  23. Diablo says:

    Pretty good job by Chia and Connor to negotiate a fair contract that somehow manages to keep some cap space available without pissing off the NHLPA.

    I would like to see Chia take a hard line with Leon though – no way he should be paid more than the deal that Kuznetsov just signed, particularly as McDavid took much less than he could have (the max).

    Then I’d like to see Chia finish things off by getting Jokinen and Franson on one year deals … though this last part may be wishful thinking based upon the crazy money and term that’s been handed out to UFAs this summer.

    As much as I’d have liked Chia to fill some of the holes on this team, I’m glad he’s stayed away from that market.

  24. stush18 says:

    Todd Macallan:
    Sounds like the prospects are putting on a show (minus the goalies), hope there are some highlights from the game!

    Edit: 1st period highlights are up. Berglund sure looks like a player with the puck on his stick.

    Where do you find the highlights?

  25. Todd Macallan says:

    stush18,

    Oilers TV has them via the Oilers.com or Oilers twitter acct now, just came up a few mins ago for the 1st period.

  26. godot10 says:

    Let us take a closer look at Kopitar’s and Getzlaf’s pay for the 8 seasons after their entry level contract.
    (All numbers from CapFriendly).

    Anze Kopitar

    2nd contract: 7 x 6.8 (11.99% of the cap at the time of signing)
    3rd contract: 8 x 10 (13.70% of the cap)
    total pay for 8 years after ELC = $56.8 million or $7.1 million per season (since 2009)
    weighted percentage of the cap = (7×11.00 + 13.70)/8 = 12.22%

    12.22% of the current cap of $75 million == $9.165 million (the upper bound for Draisaitl)
    Kopitar (2009) 8 x $7.1 == Draisaitl (2017) 8 x $9.165

    Ryan Getzlaf

    2nd contract: 5 x 5.325 (10.59% of the cap at the time of signing)
    3rd contract: 8 x 8.25 (12.83% of the cap)
    total pay for 8 years after ELC = $51.373 million or $6.422 million per season (since 2008)
    weighted percentage of the cap = (5×10.59 + 3×12.83)/8 = 11.43%

    11.43% of the current cap of $75 million == $8.5725 million (the lower bound for Draisaitl)
    Getzlaf (2008) 8 x $6.422 == Draisaitl (2017) 8 x $8.5725 million

    So a fair range for an 8 year deal for Draisaitl is $8.5 million to $9 million.

    At $8.5 million, Draisaitl is leaving $625K per season less than Kopitar’s deal, over 5%, and would be a touch less than Getzlaf’s (cap hit percentage adjusted).

  27. striatic says:

    stush18: Where do you find the highlights?

    https://www.youtube.com/watch?v=aCczzE8xtro first half highlights

  28. Lowetide says:

    Re: Safin. Reached out to @Jerome_Berube on twitter and he hasn’t heard anything since the draft but is confident Safin will play there this winter. Says it is a good fit.

  29. Pescador says:

    godot10:
    Let us take a closer look at Kopitar’s and Getzlaf’s pay for the 8 seasons after their entry level contract.
    (All numbers from CapFriendly).

    Anze Kopitar

    2nd contract:7 x 6.8 (11.99% of the cap at the time of signing)
    3rd contract:8 x 10 (13.70% of the cap)
    total pay for 8 years after ELC =$56.8 million or $7.1 million per season (since 2009)
    weighted percentage of the cap =(7×11.00 + 13.70)/8 = 12.22%

    12.22% of the current cap of $75 million == $9.165 million(the upper bound for Draisaitl)
    Kopitar (2009) 8 x $7.1 == Draisaitl (2017) 8 x $9.165

    Ryan Getzlaf

    2nd contract:5 x 5.325 (10.59% of the cap at the time of signing)
    3rd contract:8 x 8.25 (12.83% of the cap)
    total pay for 8 years after ELC =$51.373 million or $6.422 million per season (since 2008)
    weighted percentage of the cap =(5×10.59 + 3×12.83)/8 = 11.43%

    11.43% of the current cap of $75 million == $8.5725 million(the lower bound for Draisaitl)
    Getzlaf (2008) 8 x $6.422 == Draisaitl (2017) 8 x $8.5725 million

    So a fair range for an 8 year deal for Draisaitl is $8.5 million to $9 million.

    At $8.5 million, Draisaitl is leaving $625K per season less than Kopitar’s deal, over 5%, and would be a touch less than Getzlaf’s (cap hit percentage adjusted).

    Nice Post Godot,
    Since my brain is suffering heat stroke atm, can you figure out what Drai’s range is based on that second contract that Getzlaf signed for 5 years? Thx in advance
    Edit: or is it as simple as 10.59% of $75mL?

  30. Centre of attention says:

    Lowetide,

    -renews OHL live stream membership-

    I’ll be watching our two European wingers closely as they develop. Very promising players and good value where they were picked.

  31. JDI says:

    I feel for anyone not pantsless in the basement right now.

    #datphrasingtho

  32. godot10 says:

    Let’s do Joe Thornton.

    The first four years of Joe Thornton’s post ELC career were pre-cap. So I am going to assume the cap for those four years is 24% higher than the cap the first year after the first lockout. (There was a 24% salary rollback post lockout). So $39 million x 1.24 = $48.36 million (This probably underestimates the cap hit percentage for the first four years…implying an overall underestimate of Thornton’s salary equivalent)

    Joe Thornton (2001)
    year 1 = $1.550 million (3.2%est)
    year 2 = $1.825 million (3.8%est)
    year 3 = $2.175 million (4.5%est)
    year 4 = $5.500 million (11.37%est)
    year 5 = $6.667 million (17.09%)
    year 6 = $6.667 million (17.09%)
    year 7 = $6.667 million (17.09%)
    year 8 = $7.200 million (14.31%)

    $38.25 million over 8 years = $4.78125 million per season.
    weighted average of the cap = 11.06%

    11.06% of next seasons cap = .1106 x $75 million = $8.295 million per season
    Thornton (2001) 8 x $4.78125 million == Draisaitl (2017) 8 x $8.295 million

    So if one uses Thornton, Getzlaf, and Kopitar as salary comparables for Draisaitl…

    …Thornton equivalent salary for 8 years = 8 x $8.295 million
    ….Getzlaf = 8 x $8.5725 million
    ….Kopitar = 8 x $9.165 million

    in terms of percentage of the cap.

    So 8 x $8.5 for Draisaitl is perfectly reasonable and fair.

    Note: For three seasons right after the lockout, Thornton had a contract who cap hit at the time of signing was over 17% )

  33. treevojo says:

    Beautiful contract for mcdavid, the Oilers and especially us lucky fans.

    We are sooooooo lucky.

  34. godot10 says:

    Pescador:
    Edit: or is it as simple as 10.59% of $75mL?

    Exactly…$7.9425 million using only Getzlaf’s 2nd contract, which only went for 5 years.

  35. jtblack says:

    Team is taking shape! I do hope PC adds a couple pieces as you have discussed. Then we have Balance??? pretty darn close if one of the signings is a true RHD.

    Glad Connor’s contract worked out. All the haters can’t say anything bad about him or PC now, as it seems to be “fair” contract … Drai will get done as well .. the talk of trading him is non sense ..

    Sounds like Rookie camp is going well!

    LET’S GO OILERS!

  36. JDI says:

    treevojo: We are sooooooo lucky.

    It helped to have someone in the org who knew little of winning.

  37. treevojo says:

    godot10:
    Let’s do Joe Thornton.

    The first four years of Joe Thornton’s post ELC career were pre-cap.So I am going to assume the cap for those four years is 24% higher than the cap the first year after the first lockout.(There was a 24% salary rollback post lockout).So $39 million x 1.24 = $48.36 million

    Joe Thornton (2001)
    year 1 =$1.550 million(3.2%est)
    year 2 =$1.825 million(3.8%est)
    year 3 =$2.175 million(4.5%est)
    year 4 =$5.500 million(11.37%est)
    year 5 =$6.667 million(17.09%)
    year 6 =$6.667 million(17.09%)
    year 7 =$6.667 million(17.09%)
    year 8 =$7.200 million(14.31%)

    $38.25 million over 8 years = $4.78125 million per season.
    weighted average of the cap = 11.06%

    11.06% of next seasons cap = .1106 x $75 million = $8.295 million per season
    Thornton (2001) 8 x $4.78125 million == Draisaitl (2017) 8 x $8.295 million

    So if one uses Thornton, Getzlaf, and Kopitar as salary comparables for Draisaitl…

    …Thornton equivalent salary for 8 years = 8 x $8.295 million
    ….Getzlaf = 8 x $8.5725 million
    ….Kopitar = 8 x $9.165 million

    in terms of percentage of the cap.

    So 8 x $8.5 for Draisaitl is perfectly reasonable and fair.

    Now can you do these contracts with the difference in projected cap increases based at the time of signing compared to the current economic situation in the NHL?

  38. treevojo says:

    JDI: It helped to have someone in the org who knew little of winning.

    I’m sure those 6 rings were shined up sitting at the negotiating table just to give Connor an idea of what a winner looks like.

  39. jtblack says:

    Let’s review Draisatl and why he should get paid.

    Sent back to junior as an 18 yr old and told to work on his game: All he does is lead his team to WHL Title and win playoff MVP. Then he goes and wins Mem Cup MVP.

    Year 2: Start in minors and see if you can make big club: Leon starts in minors and when called up is too good to be sent back down. Throws up 51 points as a 20 yr old.

    Year 3: Prove to us you can play at an elite level Leon: OK, top 10 in scoring.

    I understand he has had the privelage of playing with great players (Hall, McD) but any NHL forward i n a top 6 role will play with great players.

    Pay the Man !!!!!!!!!!!!

  40. godot10 says:

    Datsyuk’s contracts, from his 4th NHL season on, each new contract was over 10% in cap hit percentage at the time of signing (10%, 13.32%,11.66%), again in the 11% something ballpark

  41. godot10 says:

    treevojo: I’m sure those 6 rings were shined up sitting at the negotiating table just to give Connor an idea of what a winner looks like.

    Lowe’s five Oiler rings are in the Hall of Fame room where today’s press conference and all the press conferences are held. You can glimpse them from the street. Bring binoculars.

  42. JDI says:

    treevojo,

    You spelled wiener wrong.

  43. N64 says:

    treevojo: Now can you do these contracts with the difference in projected cap increases based at the time of signing compared to the current economic situation in the NHL?

    As a quick rule of thumb Aav from 5 year deals when the cap was rising could be compared directly to aav from recent 8 year deals. total cap growth could be similar.

  44. godot10 says:

    Zetterberg’s 2nd contract was four years and a bargain deal at just under 7% of the cap at signing. His cap-circumventing 12-year backdiving third contract, even with the backdiving is over 10.73% of the cap at the time of signing. If one were to strip the backdiving from the contract…i.e. the last four years and readjusted the percentage, based on only the first 8 years of that contract, Zetterberg too would come out near 10% or over…taking the four years of the 2nd contract and the first four years of the “adjusted” 3rd contract to remove the cap circumvention.

  45. treevojo says:

    Interesting.

    I haven’t dove too deep into but that seems close to my thinking.

    So basically the NHL is growing at the same rate now over 8 years as it was back then over 5.

    Should be some relatively easy math to reconfigure godot’s earlier comparables.

  46. godot10 says:

    Toews 5 years at 11.09% + 3 years at 15.22%, weighted is 12.63% or $9.5 million for eight years after his ELC.

  47. Diesel says:

    Hiked the Sulphur Skyline, hit the hot springs, then attended the game today. Impressive creativity from Moto — although that’s hardly a groundbreaking contribution. The thing that stood out to me most was Skinner’s calm movement in the net on several difficult saves. He looked very Dubnyk-like.

  48. treevojo says:

    godot10:
    Toews 5 years at 11.09% + 3 years at 15.22%, weighted is 12.63% or $9.5 million for eight years after his ELC.

    Now your cheating.

  49. godot10 says:

    Stamkos’s contracts 11.66 and 11.64% or $8.74 million…but we agree that he took a home town discount on his 3rd deal.

    Seguin and Tavares when they sign their 3rd contracts should pull them up over 10% also, when they add two years at a much higher percentage.

    10% or $7.5 million per season for Draisaitl would be a significant underpay by the Oilers. A touch over 11% or around $8.5 million is the historical market value for a centre like Draisaitl.

  50. misfit says:

    I’ve been on board with Winnik pretty much anytime he’s been available, and it’s no different now. We have a dearth of penalty killers especially after buying out our best one last week.

    But I also have to think that if we were interested, it wouldn’t have been affected by the Connor/Leon negotiations.

  51. godot10 says:

    Spezza had a 2 year bridge….

    2 years at 10.23% and 6 years signed at 13.92% = 13%

    That would be an equivalent of $9.75 million, but he had a couple of awesome years with Heatley to earn that big 3rd contract.

    This is the danger of bridging Draisaitl. The Senators had to pay the piper for bridging Spezza.

    The market value is just over 11%…pay it.

  52. Centre of attention says:

    As Steve Dangle would say

    “I’m in it to Winnik”

    We definitely need PK help.

  53. Pescador says:

    JDI: It helped to have someone in the org who knew little of winning.

    Ahem, your forgetting a small matter of the reason for McDavid being here in the first place,
    The lottery,
    I think the org knew a thing or two about winning, if there was ever a concern.

  54. Pescador says:

    treevojo: Now your cheating.

    Harder then that 18yr old model that bagged J. Jagr.
    Ahh to be 18 again

  55. Boil-in-the-Oil says:

    jtblack,

    I agree.
    My crystal ball says 8 X $8.25 mil.
    That’s $7.5 mil (my valuation) plus $750 k (“reported” amount Connor left on the table).

    Hope they Peter can get this done sooner than later. Finalize the budget, to finish building the team… balance please.

  56. JDI says:

    Did Connor leave bread on the table for Leon?

  57. pocession charge says:

    godot10:
    Stamkos’s contracts 11.66 and 11.64% or $8.74 million…but we agree that he took a home town discount on his 3rd deal.

    Seguin and Tavares when they sign their 3rd contracts should pull them up over 10% also, when they add two years at a much higher percentage.

    10% or $7.5 million per season for Draisaitl would be a significant underpay by the Oilers.A touch over 11% or around $8.5 million is the historical market value for a centre like Draisaitl.

    Your argument would be more convincing if you used proper comparables. Since I know you won’t, as you were.

  58. pocession charge says:

    Pescador: Harder then that 18yr old model that bagged J. Jagr.
    Ahh to be 18 again

    Ahh to be Jagr.

  59. Pescador says:

    godot10: Lowe’s five Oiler rings are in the Hall of Fame room where today’s press conference and all the press conferences are held.You can glimpse them from the street.Bring binoculars.

    JDI:
    treevojo,

    You spelled wiener wrong.

    Approx how big are each of those rings? Bout 1″?

  60. Boil-in-the-Oil says:

    JDI,

    Mostly crust, but ya.

    JDI:
    Did Connor leave bread on the table for Leon?

    Mostly crust, but ya, he’s a sharing guy.

  61. Scungilli Slushy says:

    Pescador: Harder then that 18yr old model that bagged J. Jagr.
    Ahh to be 18 again

    You’re pretty in to Jagr, huh? 🙂

  62. Pescador says:

    pocession charge: Ahh to be Jagr.

    Uh ya, ya that’s what I meant

  63. Richard S.S. says:

    Apparently the Draisaitl Camp is looking for 75% of McDavid’s value. That’s what I’d call excessive. So Chiarelli knows what is possible, and I expect he waits for the “ask” to go down. Those Teams that could afford him and want him should be told – make your best offer and you might get considered.

    It all depends on how long the Contract should be. I’d go two years and $12.0 Million total. Draisaitl must prove he’s a super-star to get what he wants.

  64. Scungilli Slushy says:

    The way the Oilers, Connor and the agent spoke about the negotiation which considered what other top players made, what Sid did, what better teams have done, what makes sense in that light is two players, 21M.

    Leon 8.5 x 8.

  65. pocession charge says:

    godot10:
    Toews 5 years at 11.09% + 3 years at 15.22%, weighted is 12.63% or $9.5 million for eight years after his ELC.

    Not a comparable. In the third year of his ELC, he was a Stanley Cup champ, won the Conn Smythe trophy, better scoring numbers in his first two seasons (better track record), Olympic gold medalist.

  66. megahurts says:

    the cap room is there there is there’s someone out there

    Like poetry

  67. pocession charge says:

    Draisaitl put up his big numbers playing wing. (I’m not going to do the work to verify that; Woodguy must love when he gets that all the time). One continues to use top center comps, though.

  68. Chachi says:

    Diesel:
    Hiked the Sulphur Skyline, hit the hot springs, then attended the game today. Impressive creativity from Moto — although that’s hardly a groundbreaking contribution. The thing that stood out to me most was Skinner’s calm movement in the net on several difficult saves. He looked very Dubnyk-like.

    How was the Sulphur Skyline hike? Thinking of doing it later this year.

  69. JDI says:

    pocession charge: Olympic gold medalist.

    Connor simply hasn’t been old enough to be involved in the Olympics. But if they were held this summer, I would bet real sand dollars that he wins a gold.

  70. ashley says:

    Multi-million dollar payday for the agent today too. That man will sleep well tonight.

    Of course everyone else wants a piece too. So McD’s trainer is eyeing some bigger fees, his other hockey related services will cost more, and I can’t imagine what his disability insurance will cost. Then there will be all the “wealth management” companies who will be rattling his cage for some one v one time, if they haven’t already been.

    12.5 million is cool and all, but it attracts a lot of unwanted attention and expense too.

  71. Chachi says:

    ashley:
    Multimillion dollar payday for the agent today too.That man will sleep well tonight.

    Easy money.

  72. pocession charge says:

    If you are selling your house, do you get to use comps from 2001? My gut instinct tells me no.

  73. godot10 says:

    Richard S.S.:
    Apparently the Draisaitl Camp is looking for 75% of McDavid’s value.That’s what I’d call excessive.So Chiarelli knows what is possible, and I expect he waits for the “ask” to go down.Those Teams that could afford him and want him should be told – make your best offer and you might get considered.

    It all depends on how long the Contract should be.I’d go two years and $12.0 Million total.Draisaitl must prove he’s a super-star to get what he wants.

    You don’t get him for $8.5 million after a bridge deal though…you will be paying over $10 miliion per season and will have exacerbated the cap problem. Remember, Matthews, Eichel,Tavares, and Seguin are in the pipeline. All are likely to get $12 million. Plus Johanssen. So in two year Draisaitl will be looking for over 10.

    The Oilers have the cap space this year. They can buy down the long term AAV by signing him longterm now and using this season’s cap space.

    =========
    So Draisaitl’s opening gambit is 75% of McDavid. I was figuring fair would be 65-70% which would correspond to historical market value of just over 11% of the cap at the time of signing.

  74. godot10 says:

    pocession charge:
    Draisaitl put up his big numbers playing wing.(I’m not going to do the work to verify that; Woodguy must love when he gets that all the time).One continues to use top center comps, though.

    Not against Anaheim.

  75. pocession charge says:

    ashley:
    Multi-million dollar payday for the agent today too.That man will sleep well tonight.

    Of course everyone else wants a piece too.So McD’s trainer is eyeing some bigger fees, his other hockey related services will cost more, and I can’t imagine what his disability insurance will cost.Then there will be all the “wealth management” companies who will be rattling his cage for some one v one time, if they haven’t already been.

    12.5 million is cool and all, but it attracts a lot of unwanted attention and expense too.

    I’m not a lawyer but I believe that the contract is guaranteed against injury. I believe the team takes out insurance on the contract. A personal disability policy wouldn’t work as it covers a maximum of $24,500/month, as per Canadian legislation.

    You are spot on the rest of your commentary. There will always be someone trying to take advantage of him.

  76. godot10 says:

    pocession charge:
    If you are selling your house, do you get to use comps from 2001? My gut instinct tells me no.

    They were normalized to the cap at the time.

  77. pocession charge says:

    godot10: Not against Anaheim.

    In four of the seven games he was on a major heater (games 1,2, and 7 weren’t great). You don’t base a long term contract off of a minuscule sample size.

  78. godot10 says:

    ashley:
    Multi-million dollar payday for the agent today too.That man will sleep well tonight.

    Of course everyone else wants a piece too.So McD’s trainer is eyeing some bigger fees, his other
    hockey related services will cost more, and I can’t imagine what his disability insurance will cost.Then there will be all the “wealth management” companies who will be rattling his cage for some one v one time, if they haven’t already been.

    12.5 million is cool and all, but it attracts a lot of unwanted attention and expense too.

    Doesn’t McDavid already have a deal in place with CIBC for wealth management, that was revealed at that Skate-with-Connor-CIBC event that Lowetide was invited to?

  79. pocession charge says:

    godot10: They were normalized to the cap at the time.

    There was no cap until 05-06, so….?

  80. Johnny says:

    What a day for Edm.

    After spending the day feeling fortunate, trying to value Leon, and trading RNH (for magic beans), I now want to point out, that after McSavior pays Uncle Sam and his agent, he will only take home $4-5M per year.

    And if the oilers are able to bring in Matt Cullen on a one year deal, I think they may win the cup. I have already traded RNH, and believe me, you won’t like the return.

  81. pocession charge says:

    I am not an agent, but I believe they get a much smaller percentage of the hockey contract and a larger percentage of endorsement deals and sponsorships.

  82. godot10 says:

    pocession charge: There was no cap until 05-06, so….?

    I took the cap after the lockout $39 million and multiplied it by 1.24 to account for the rollback and estimated a cap of $48.36 million for the 4 years before the lockout for Thornton’s contract. That is the only one that uses an estimate.

  83. Johnny says:

    I’ve always had agents in the 10-15 range of player salary. An agent wouldn’t make off very well on Pakarainens endorsement deals.

  84. pocession charge says:

    Johnny:
    What a day for Edm.

    After spending the day feeling fortunate, trying to value Leon, and trading RNH (for magic beans), I now want to point out, that after McSavior pays Uncle Sam and his agent, he will only take home $4-5M per year.

    And if the oilers are able to bring in Matt Cullen on a one year deal, I think they may win the cup. I have already traded RNH, and believe me, you won’t like the return.

    His agent probably draws 500K per year on that deal. I’m sure they would advise Connor to set up a holding company to receive the revenues. Then he would draw a dividend or salary. His numbered company would pay under 15% tax on the first $500K and 30+% on the remainder. It’s a tax deferral strategy. If he takes it all personally then he gets dinged for 48% (in AB).

  85. Pescador says:

    godot10: Doesn’t McDavid already have a deal in place with CIBC for wealth management, that was revealed at that Skate-with-Connor-CIBC event that Lowetide was invited to?

    You mean the Skate-with-Lowetide event that Connor was invited to?

  86. Pescador says:

    ashley:
    Multi-million dollar payday for the agent today too.That man will sleep well tonight.

    Of course everyone else wants a piece too.So McD’s trainer is eyeing some bigger fees, his other hockey related services will cost more, and I can’t imagine what his disability insurance will cost.Then there will be all the “wealth management” companies who will be rattling his cage for some one v one time, if they haven’t already been.

    12.5 million is cool and all, but it attracts a lot of unwanted attention and expense too.

    I’ll take “problems I wish I had” for $300 Alex

  87. Chachi says:

    Johnny:
    I’ve always had agents in the 10-15 range of player salary. An agent wouldn’t make off very well on Pakarainens endorsement deals.

    I have heard its 3-6%

  88. Johnny says:

    pocession charge: His agent probably draws 500K per year on that deal.I’m sure they would advise Connor to set up a holding company to receive the revenues.Then he would draw a dividend or salary.His numbered company would pay under 15% tax on the first $500K and 30+% on the remainder.It’s a tax deferral strategy.If he takes it all personally then he gets dinged for 48% (in AB).

    You are probably right.

  89. Scungilli Slushy says:

    ashley:
    Multi-million dollar payday for the agent today too.That man will sleep well tonight.

    Of course everyone else wants a piece too.So McD’s trainer is eyeing some bigger fees, his other hockey related services will cost more, and I can’t imagine what his disability insurance will cost.Then there will be all the “wealth management” companies who will be rattling his cage for some one v one time, if they haven’t already been.

    12.5 million is cool and all, but it attracts a lot of unwanted attention and expense too.

    I would think that instead of gouging Connor the opposite will happen. At least for anybody with business sense. Connor being a regular at your restaurant would keep the place packed. Connor at your concert, play is great publicity – free tickets.

    A trainer’s career would be made even if it was just one year. Connor was already a millionaire before the contract so he was probably paying well anyway. A trainer could risk souring the relationship if he wanted more now. I am sure Connor is aware of the value of his name to anyone or anything related to hockey.

    As for financial service companies, requests for donations and handouts, yuck.

  90. Scungilli Slushy says:

    Chachi: I have heard its 3-6%

    Especially on the low end for elites.

  91. Scungilli Slushy says:

    pocession charge: His agent probably draws 500K per year on that deal.I’m sure they would advise Connor to set up a holding company to receive the revenues.Then he would draw a dividend or salary.His numbered company would pay under 15% tax on the first $500K and 30+% on the remainder.It’s a tax deferral strategy.If he takes it all personally then he gets dinged for 48% (in AB).

    The agent would get part of that, the agency would have a share.

  92. ashley says:

    pocession charge: His agent probably draws 500K per year on that deal.I’m sure they would advise Connor to set up a holding company to receive the revenues.Then he would draw a dividend or salary.His numbered company would pay under 15% tax on the first $500K and 30+% on the remainder.It’s a tax deferral strategy.If he takes it all personally then he gets dinged for 48% (in AB).

    I think they are forced to divide their yearly income into pay/game and must pay the tax rate in whichever province/state they played the game in. It’s tedious accounting, and of course those financial professional fees are going to be higher for the 12.5 million dollar guy than the the 850k guy.

  93. Rondo says:

    I think Oilers should look at Jussi Jokinen he would help the Oilers and Jesse P.

  94. Scungilli Slushy says:

    Johnny: after McSavior pays Uncle Sam and his agent, he will only take home $4-5M per year.

    In Players Tribune I believe it was Rich Clune who said that a player ends up with about half. I’m sure it’s different for lower level players than high salary guys who would have more help and ways to minimize tax.

  95. Lowetide says:

    Pescador: You mean the Skate-with-Lowetide event that Connor was invited to?

    🙂 You win a Gold Star!

  96. Mr. D. says:

    Agents take 3%.

    pocession charge: His agent probably draws 500K per year on that deal.I’m sure they would advise Connor to set up a holding company to receive the revenues.Then he would draw a dividend or salary.His numbered company would pay under 15% tax on the first $500K and 30+% on the remainder.It’s a tax deferral strategy.If he takes it all personally then he gets dinged for 48% (in AB).

  97. pocession charge says:

    ashley: I think they are forced to divide their yearly income into pay/game and must pay the tax rate in whichever province/state they played the game in.It’s tedious accounting, and of course those financial professional fees are going to be higher for the 12.5 million dollar guy than the the 850k guy.

    Interesting. I’ve never heard that before. I know that some US states charge ‘athlete fees’ as a form of tariff on sports. I’m going to dig further into this (i.e. ask my accountant) and report back to the blog. This would open up a long line of additional questions. If Connor’s salary is mostly signing bonus, where is that taxed?

    He’ll definitely pay a lot of legal and accounting fees. He’s a big business brand now.

  98. pocession charge says:

    Scungilli Slushy: In Players Tribune I believe it was Rich Clune who said that a player ends up with about half. I’m sure it’s different for lower level players than high salary guys who would have more help and ways to minimize tax.

    In the end, the tax man cometh and taketh away. But you pay it earlier when you draw the money personally. Connor doesn’t seem like the type who needs eight Lambo’s and a white tiger in order to feel fulfilled. One nice item for our Captain: he gets paid in US dollars and nearly all of his expenses will be in loonies. That will take some serious sting out of his tax burden.

  99. pocession charge says:

    Mr. D.:
    Agents take 3%.

    So that is $375K per year on average. There might be an agency fee over and above that $375K.

  100. unca miltie says:

    Read the L.A. Ferris book, Heathen, this week. reads like a sequel is coming..some will know who Ferris is

  101. Pescador says:

    pocession charge: In the end, the tax man cometh and taketh away.
    Connor doesn’t seem like the type who needs eight Lambo’s and a white tiger in order to feel fulfilled.

    https://m.youtube.com/watch?v=N4bMOGmZ4b8#

  102. Thinker says:

    Pretty sure it is lump sum payment, and you pay tax in home team city. Not sure why the league doesn’t standardize tax rates. Why couldn’t they pay all players out of Texas (or wherever taxes are lowest). I did the math once, but I forget exact numbers. Some teams get 3.5+ million in extra cap power due to tax rates.

    California taxes you on the game, but takes the rate as your annual income. At least that was the case in the 2016 superbowl, when the winning quarterback had to pay money because of the championship bonus they were given. I think thats a special circumstance though because it was a bonus, not salary.

  103. Diesel says:

    Chachi: How was the Sulphur Skyline hike? Thinking of doing it later this year.

    It is short (3.25 hours round trip) but intense. Quite steep for almost the entire ascent, but a spectacular 360 degree view from the peak. Not many things to marvel at along the way, as it’s a relatively narrow, covered trail, but once you clear the tree line you will appreciate the altitude. Overall, for a short but challenging climb, it’s worth it.

  104. Chachi says:

    Diesel,

    Sounds like fun!

  105. russ99 says:

    Mike:
    I have only one wish for the coming season, I truly hope to see nuge on MCD wing for 20 games. I honestly think that they would play off each other brilliantly.

    I have only one wish for the season, that Nuge can play within the system, go to the tough areas and make plays under pressure, and give us tougher two-way play to solidify the second cycle line this season, so Leon can thrive at RW and make up some of Eberle’s goals.

  106. Kinger_Oil.redux says:

    russ99: I have only one wish for the season, that Nuge can play within the system, go to the tough areas and make plays under pressure, and give us tougher two-way play to solidify the second cycle line this season, so Leon can thrive at RW and make up some of Eberle’s goals.

    – It’s going to be an interesting season: On paper, all of Drai, Nuge Strome could/should be 2nd line C’s in an ideal roster. I wonder how they will deploy them all?

    – If the plan is to trade RNH, you hope he is able to play a prominent role this year, and give Drai more reps as 2nd C. I wish I could represent this graphically but:

    1) Leon: 1 RW/2C/PP
    2) Nuge: 2C/3C/PP/PK
    3) Strome: 3C/1 or 2 RW/PP

    – They do have lots of options with these 3 “C” behind McD

  107. Snowman says:

    I heard Strudwick on the radio today talking about agent fees. Their fees are all different and negotiated by each player.

    He said its not uncommon for guys like Connor to have their agent work for free because he’ll get hundreds of other clients because he has Connor Mcdavid. So basically, Jeff Jackson may have got paid big time or he may have gotten jack all yesterday. Only people who know are Jeff Jackson and Connor Mcdavid.

  108. speeds says:

    Snowman,

    Interesting. Considering, from the reports, McDavid asked to take less money, I can see why a person in that position might feel they shouldn’t pay standard agent fees.

    At the same time, if the agent was the guy doing all the work coordinating things, actually having all the talks, I can also see why McDavid would think that effort was worth something.

  109. Jaxon says:

    Richard S.S.:
    Apparently the Draisaitl Camp is looking for 75% of McDavid’s value.That’s what I’d call excessive.So Chiarelli knows what is possible, and I expect he waits for the “ask” to go down.Those Teams that could afford him and want him should be told – make your best offer and you might get considered.

    It all depends on how long the Contract should be.I’d go two years and $12.0 Million total.Draisaitl must prove he’s a super-star to get what he wants.

    I think that is a terrible idea. If Leon performs really well, what will the ask on his next contract be? $12M again? Or $12M x 1 or 2 just to get to free agency and bolt. Also, I think it just might be impossible to fit a $12M deal under the cap next season. To get under cap for the 2018-2019 with a $12M Draisaitl contract you’d have to let go of Maroon, Nurse, Letestu, Benning and Fayne for nothing. And Nuge’s return would have to be a contract that is less than 3.7M (think Gudbranson, Gudas, Gallagher, Jenner). I”m not sure you’d get that kind of value back for Nugent-Hopkins. Hopefully, he has a great year and his value shoots up on the trade market. And you’d have to get Strome, Caggiula, Slepyshev to sign for about $6M total, which will be pretty hard if they’re worth keeping.

    You’d have these 12 inexperienced players on your starting lineup:
    Benson, LaLeggia, Khaira, Gambardella, Rattie, Puljujarvi, Caggiula, Slepyshev, Bear, Paigin, Broissott. That’s over half your team with less than a year or two experience in the NHL.

    The rest of your lineup is the NMCs: Lucic, Sekera, Russell, Talbot
    Around these players: McDavid, Draisaitl, Strome, Kassian, Klefbom, Larsson, Gudas, Gryba

    It would be nice if we could hang onto Nurse and Benning, but that would require at least $3M to $5M in cap space. So Draisaitl signing for $8.5M or less long term instead of a $12M bridge is a pretty big deal.

  110. admiralmark says:

    Jaxon,

    Dont wanna speak for Richard SS. But I think he meant $12 mill over 2 years? So $6mill x 2years.

  111. admiralmark says:

    Hey Lowetide or anyone. Have we heard a diffinitive reason why Joey Lallegia was moved from D to W? Seems like he was excelling at the PP QB position in College prior to Oilers drafting him.

    Put me down as one that would play hardball with Draisaitl if he’s asking for anything north of $8 Million. The majority of his positive track record is playing wing with McDavid. So his contract at this time should reflect a winger that was boosted by the best(maybe 2nd) player in the game. Until he proves he can drive his own line at Center. I wouldn’t offer more then $7.5mill x 8 years. As was suggested above $6 mill x 2 years and then play him at 2C would be something to consider. I absolute love this player and thing he could become a very dominant Center… But there isn’t enough track at this point to know with certainty that’s the player he is.

  112. Jaxon says:

    admiralmark,

    Yup, upon re-readin’, I think you’re correct. Carry on.

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