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The NHL

July 16, 2007
July 16, 2007

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July 16, 2007

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Jerry Jones

The NHL

Incentive Plan

This is an article from the July 16, 2007 issue Original Layout

Even with a salary cap, the well-to-do teams dominate the free-agent market by offering front-loaded deals to stars

JUST AS Gordie Howe used his infamous elbows, rich NHL clubs have come up with a tactic to shove their less-well-heeled competitors out of the way in the free-agent market. The concept of front-loaded contracts is neither new nor nefarious, but in the 2007 free-agent bonanza, it did give franchises that generate considerable revenue—the Rangers, Flyers and Avalanche, for example—an inherent advantage. Multiple factors played a role in steering marquee free agents such as centers Chris Drury and Scott Gomez to the Rangers, center Daniel Bri√®re to Philadelphia and left wing Ryan Smyth to Colorado, but the means to pay large sums up front helped grease deals for the same teams that had been unfettered spenders in the pre-salary-cap era.

Take the Brière contract. The former Sabres co-captain, who turns 30 in October, signed an eight-year, $52 million deal to join a team that is rebuilding at warp speed. Philadelphia will be charged the annual average on the contract, $6.5 million, against what is now a $50.3 million salary cap. But because the deal is front-loaded, Brière will make $10 million next season, $8 million the following two years and $7 million for three years until the final two seasons of the deal, when he will be paid $3 million and then $2 million. Certainly a deal like Brière's or Smyth's, which will pay him $7.5 million this season even though his salary-cap charge is $6.25 million, is a way of adding value to the contract without adding to the cap number.

While front-loading might not frighten off all suitors—"I've never looked at front-loading as a nuclear bomb just to scare teams away," Kings general manager Dean Lombardi says—it can work as a deterrent. "Clearly it's a negotiating ploy for teams that have that kind of revenue," says Hurricanes G.M. Jim Rutherford, who kept his payroll $4 million under the cap last year. "With our business model, it doesn't make any sense. We don't have the cash flow."

The front-loaded deals can be win-win for the player and the team. The player earns a surfeit of dollars in 2007--08—Gomez will get $10 million of his seven-year, $51.5 million deal this season—but there can be a windfall for the teams near the end of these contracts. Under the collective bargaining agreement, if a player signs a multiyear deal before the age of 35 and retires before it finishes, there is no salary-cap charge for the unplayed seasons.

"This is a creative way of trying to steer people your way, but it's obviously meant for top-end, high-profile free agents," says Red Wings G.M. Ken Holland, who has told agents he will not front-load offers because he thinks Detroit offers an attractive enough environment without additional inducements. "The third-line guy isn't going to command this. But for me, you're still primarily looking at the cap numbers. We all have the same amount we're allowed to spend. We can spend it any way we want."

SPURNED CITIES

Not Hot Spots For Free Agents

Consider the plight of the Canadiens: With a history of 24 Stanley Cups in a vibrant, bilingual city that offers unmatched hockey ambience, Montreal shouldn't be a tough sell to premium free agents. But since 2005 the team has failed to land several high-profile free agents it targeted, including forwards Paul Kariya, Brendan Shanahan and, this season, Ryan Smyth and, most tellingly, Daniel Brière.

In a year in which many free agents chose to sign with teams near their hometowns—Brian Rafalski, who was born in Dearborn, Mich., signed with the Red Wings, and southern Connecticut native Chris Drury will play in New York City—Bri√®re, a Quebecer from the Ottawa area, signed with Philadelphia. Montreal's perceived flaws are high provincial taxes, a voracious media and its status as a perennial playoff bubble team that has won only three series since its last Cup, in 1993. General manager Bob Gainey, who did sign second-tier free agents Roman Hamrlik and Bryan Smolinski, told reporters, "We have to set our table to attract people to sit at it."

But Montreal might be paradise compared to Edmonton. The Oilers thought they had a deal with center Michael Nylander, late of the Rangers, until he skipped to Washington for less money. Oilers G.M. Kevin Lowe told the Edmonton Sun, "It's like his wife freaked out, like she was being shipped to Siberia or something."

> DANIEL BRIERE
$10 million for '07--08

> SCOTT GOMEZ
$10 million for '07--08

> CHRIS DRURY
$7.1 million for '07--08

> RYAN SMYTH
$7.5 million for '07--08

ONLY AT SI.COM More from Allan Muir on the latest free-agent news.

THREE PHOTOSLOU CAPOZZOLAPHOTOBILL WIPPERT (DRURY)FOUR PHOTOS