[Article] Bonus Laden Contracts Trending Upwards Before CBA Expiration

[RWJC]

Bonus Laden Contracts Trending Upwards Before CBA Expiration

 

August 26th, 2024 at 8:00pm CST • By Brennan McClain

 

TSN’s Travis Yost analyzed the growing number of bonus-laden contracts in the NHL and directly correlated it to the upcoming expiration of the current Collective Bargaining Agreement between the NHL and NHLPA. There are several issues at hand once the CBA expires after the 2025-26 NHL season but many players are beginning to protect themselves with higher bonuses and lower salaries.

 

The protective nature of signing bonuses in a potential lockout is straightforward. Signing bonuses are due in the summer months leading up to the start of the season meaning a lockout wouldn’t prohibit a player from receiving it. Players’ salaries are typically frozen during a lockout which has been a misfortune used to strongarm the NHLPA during the 2004-05 and 2012-13 lockouts.

 

Yost shows in the article that the percentage of contracts containing signing bonuses has been climbing as approximately 80% of deals signed from January 2024 included signing bonuses for the 2026-27 NHL season. The players are putting themselves in a much better bargaining position once the current CBA ends as ownership groups won’t be able to hold their frozen salaries over their heads.

 

There are 38 players in the league with signing bonuses totaling $3MM or more for the 2026-27 season and another 22 players with $1MM or more. Rudimentary math works it out to around 8% of players carrying signing bonuses in their deals assuming that all 32 teams keep a 23-man roster for the 2026-27 season.

 

That number will surely expand over the next two summers as the likes of Connor McDavid, Leon Draisaitl, Mikko Rantanen, and Artemi Panarin among others will see their current contracts conclude and will certainly be looking to protect themselves in case of a lockout. We are still about a year and a half away from action picking up on the new CBA between the NHL and NHLPA but the players are already taking the necessary steps to protect their financial security.

 

https://www.prohockeyrumors.com/2024/08/bonus-laden-contracts-trending-upwards-before-cba-expiration.html#ref=home

[gwarrior]

Please tell me this isn't going to lead to another lockout. I don't think I can stomach another one. If there is one, I might have to start sacrificing people who just in general piss me off.

[RWJC]

9 minutes ago, gwarrior said:

Please tell me this isn't going to lead to another lockout. I don't think I can stomach another one. If there is one, I might have to start sacrificing people who just in general piss me off.

 

 

[gwarrior]

1 hour ago, RWJC said:

 

 

He's first on the list.

[Drive-By Body Pierce]

5 hours ago, gwarrior said:

Please tell me this isn't going to lead to another lockout. I don't think I can stomach another one. If there is one, I might have to start sacrificing people who just in general piss me off.

 

You know who to contact for help.

[iinatcc]

Doesn't a lockout mean a lower cap like before? I don't think most teams can afford another flat or reduced cap and I think this hurts the Canadian teams the most like Edmonton and Toronto since they are the teams that currently have the elite high priced talent. 

 

This could also impact extension talks with Hughes though if the cap is going to be impacted.

 

[grumpyone]

imho... a signing bonus should only be allowed for the FIRST year of a contract. You can't get a signing bonus EVERY SINGLE year of an 8 year contract.

 

[kettlevalley]

On 8/27/2024 at 11:59 AM, grumpyone said:

imho... a signing bonus should only be allowed for the FIRST year of a contract. You can't get a signing bonus EVERY SINGLE year of an 8 year contract.

 

They are signing contracts with signing bonus due after expiration to circumvent salary cap now too.  

[IBatch]

This has been going on for decades now for star players.   Look at Luongo's deal, most of it was front loaded because his market value was far greater then his AVV on a shorter term deal, and the future value of money (financial term), that money invested gets to grow right away.   By the time the contract is all paid and done versus one without the bonus money, he has a much bigger bank account.   It's used to keep AVV down (or was), but now is handed out to players who really haven't done enough to get that sort of special treatment, on a regular basis.   Greed.   It really complicates buyouts as well.     And for the Canucks, we truly did have a player who's AVV was much lower then it would have been on a 7-8 year deal.   

Edited September 6 by IBatch