July is one of the most critical months on the calendar for NHL players, agents and GMs. July 1 rings in a new league year and the opening of free agency. This year the NHL saw 125 unrestricted free agent players sign for a total of $700 million on July 1 alone.
While July 1 gets the headlines, an equally important date in July often gets overlooked.
July 5, the filing date for salary arbitration, has proven to be an important date for any club looking to sign its best players. This summer, 40 players elected to have an arbitrator decide their salary for the 2019-20 season.
Salary arbitration is a powerful tool for both the players and the GMs. An arbitration-eligible player can elect to take his club to arbitration. A player will do this if he does not believe the club is offering fair market value for his services. A GM can also use the arbitration process and bring a player to an arbitration hearing. GMs often use salary arbitration when negotiations between the two sides have stalled. [/vc_column_text][/vc_column][/vc_row][vc_row equal_height=”yes” content_placement=”middle”][vc_column][vc_column_text]This year, 40 players have elected to file for arbitration. As of July 24, 29 of the 40 players have settled and signed new contracts. Typically, only three or four players each year go all the way through the arbitration process.
So far this year, two players, Christian Djoos of the Washington Capitals and Andrew Copp of the Winnipeg Jets, have completed the arbitration process and were awarded new contracts. Djoos was awarded a one-year deal worth $1.25 million. This is an increase in salary by $600,000.
Copp was awarded a two year contract worth $4.56 million, an AAV of $2.28 million. This is an increase in annual salary of $1.28 million.
To qualify for the arbitration process, a player must meet the criteria outlined in the chart below and be a restricted free agent:
The Collective Bargaining Agreement (CBA) details the number of games a player must play in a particular season to accrue a year of professional experience. According to the CBA:
“A player aged 18 or 19 earns a year of professional experience by playing ten (10) or more NHL games in a given season. A player aged 20 or older (or who turns 20 between September 16th and December 31st of the calendar year in which he signs his first standard player contract) earns a year of professional experience by playing ten (10) or more Professional Games under a standard player contract in a given season.”
Once a hearing is underway the club, and the player will argue to an independent arbitrator to determine how much the player should make for the following season. During the hearing, the parties are allowed to present evidence on the following:
a. The overall performance, including National Hockey League official statistics, of the player; (For more information on the official statistics look at Why Enhanced Statistics Are a Game Changer for NHL Contract Negotiations);
b. The number of games played by the player, and his injuries or illnesses during the preceding seasons;
c. The length of service of the player in the League and/or with the club;
d. The overall contribution of the player to the competitive success or failure of his club in the preceding season;
e. Any special qualities of leadership or public appeal;
f. The overall performance in the previous season or seasons of any player who is alleged to be comparable to the party player whose salary is in dispute; and
g. The compensation of any player who is alleged to be comparable to the player.
The following evidence is not admissible:
a. Any Standard Player Contract the term of which began when the player to such Standard Player Contract was not a Group 2 player;
b. Any Standard Player Contract entered into by an Unrestricted Free Agent;
c. The Standard Player Contract of any player who is not being offered as a comparable player to the player;
d. Qualifying Offers made by the club;
e. Any prior offers or history of negotiations between the player and the club;
f. Testimonials, videotapes, newspaper columns, press game reports or similar materials;
g. Any reference to actual or potential walk away rights;
h. Any award issued by a Salary Arbitrator which a club exercised its walk-away rights;
i. The financial condition of the club or the League;
j. References to a club’s Upper or Lower Limit, or to the players’ Share;
k. Any salary arbitration award issued in 2005-2006; or
l. Any reference to any salary or other compensation information in any salary arbitration opinion that took place prior to July 22nd, 2005.
Once the hearing is completed, the arbitrator has 48 hours to issue a written decision. The club and player can either enter into a contract for the amount determined by the arbitrator, or they can walk away, and the player will become an unrestricted free agent.
The salary arbitration process is a powerful tool for both parties and ultimately helps resolved salary disputes and award a fair salary based on the players’ past performance compared to other players in the league. 2019 has proven to be the year of the restricted free agents, and the arbitration process has reflected that with 40 players filing. It will be interesting to see how many more players actually make it to a hearing and have an award issued.[/vc_column_text][vc_single_image image=”6284″ img_size=”full” alignment=”center”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Players who filed for Salary Arbitration:
ANAHEIM DUCKS
Chase De Leo
Settled: One-year, two-way deal worth $750,000.
BOSTON BRUINS
Danton Heinen
Settled: two-year, $5.6-million.
BUFFALO SABRES
Remi Elie
Arbitration hearing date: August 1st
2018-19 salary: $735,000
Jake McCabe
Arbitration hearing date: August 4th
2018-19 salary: $1.6-million
Evan Rodrigues
Team offered: $1.5 million; Player requested: $2.65 million
Arbitration hearing date: July 23rd
2018-19 salary: $650,000
Linus Ullmark
Arbitration hearing date: August 2nd
2018-19 salary: $750,000
CALGARY FLAMES
Sam Bennett
Arbitration hearing date: July 27th
2018-19 salary: $1.95 million
Ryan Lomberg
Settled: one-year, two-way deal worth $700,000 on July 16th.
David Rittich
Arbitration hearing date: July 29th
2018-19 salary: $800,000
Rinat Valiev
Settled: one-year, two-way contract worth $700,000 on July 16th.
CAROLINA HURRICANES
Anton Forsberg
Arbitration hearing date: August 4th
2018-19 salary: $750,000
Brock McGinn
Team offered: $1.75 million AAV; Player requested: $2.7 million AAV
Settled: Two years, $4.2MM
COLORADO AVALANCHE
J. T. Compher
Settled: four-year, $14-million deal on July 17th.
Sheldon Dries
Arbitration hearing date: August 4th
2018-19 salary: $925,000
Ryan Graves
Settled: One-year pact worth $735,000 on July 8th.
DALLAS STARS
Jason Dickinson
Settled: Two-year, $3 million contract on July 11th.
FLORIDA PANTHERS
MacKenzie Weegar
Settled: One-year, $1.6-million AAV
2018-19 salary: $900,000
LOS ANGELES KINGS
Alex Iafallo
Settled: Two-year, $4.85-million contract on July 10th.
MONTREAL CANADIENS
Joel Armia
Settled: Two-year, $5.2-million deal on July 11th.
Charles Hudon
Settled: One-year, $800,000 on July 19th.
Artturi Lehkonen
Settled: Two-year, $4.8-million on July 11th.
NASHVILLE PREDATORS
Rocco Grimaldi
Arbitration hearing date: August 4th
2018-19 salary: $650,000
Colton Sissons
Settled: 7 Year deal worth $2.86 million AAV
2018-19 salary: $625,000
NEW JERSEY DEVILS
Will Butcher
Arbitration hearing date: August 2nd
2018-19 salary: $925,000
Connor Carrick
Settled: Two-year, $1.5 million AAV on July 16th.
Mirco Mueller
Settled: One year, $1.4 million
NEW YORK RANGERS
Pavel Buchnevich
Arbitration hearing date: July 29th
2018-19 salary: $925,000
Jacob Trouba
Settled: 7-year, $56 million deal on July 19th.
PHILADELPHIA FLYERS
Scott Laughton
Settled: Two-year, $4.6-million deal on July 12th.
PITTSBURGH PENGUINS
Zach Aston-Reese
Settled: Two years, $1.0 million AAV
ST. LOUIS BLUES
Jordan Binnington
Settled: Two-year, $8.8-million deal on July 13th.
Joel Edmundson
Arbitration hearing date: August 4th
2018-19 salary: $3 million
Ville Husso (team-elected)
Settled: One year, two-way, $700K AAV
Zachary Sanford
Settled: Two-year deal with an AAV of $1.5 million on July 8th.
Oskar Sundqvist
Settled: Four years, $2.75 million AAV
TAMPA BAY LIGHTNING
Cedric Paquette
Settled: Two-year deal $1.65 million AAV
VEGAS GOLDEN KNIGHTS
Malcolm Subban
Settled: One-year deal on July 9th worth $850,000.
WASHINGTON CAPITALS
Christian Djoos
Awarded: One-year, $1.25 million.
2018-19 salary: $650,000
Chandler Stephenson
Arbitration hearing date: August 1st
2018-19 salary: $650,000
WINNIPEG JETS
Andrew Copp
Team Offered: $1.5 million AAV, Player Requested: $2.9 million AAV
Awarded: Two-year, $4.56 million, $2.28 million AAV
2018-19 salary: $1 million
Neal Pionk
Settled: Two years, $3.0 million [/vc_column_text][/vc_column][/vc_row]
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