NHL Free agency: Most long-term contracts will end in trade or buyout
Exactly six years ago Friday, the Toronto Maple Leafs made one of the most infamous free agent signings in the salary cap era when they inked David Clarkson to a seven-year, $36.75 million contract. It was a dubious signing from the very beginning due to Clarkson’s age (he was already 29 years old) and lack of consistent, top-line production in the NHL. Adding to the absurdity was the reception of the contract in Toronto (comparing him to Wendel Clark) and the way then-general manager Dave Nonis defended the signing from any and all criticism by saying, “I’m not worried about six or seven right now. I’m worried about one. And year one, I know we’re going to have a very good player. I believe that he’s got a lot of good years left in him.”
How did that work out?
In year one Clarkson scored five goals in 60 games, was a colossal bust, and was then traded to the Columbus Blue Jackets halfway through year two of the contract for Nathan Horton, another free agent bust from the same offseason whose career would be derailed and ultimately ended by injury. The Maple Leafs knew Horton would never play again and the whole trade was nothing more than a way to shed an albatross contract that looked to be a mistake from the start. It was an obvious -- and ultimately legal -- circumvention of the league’s salary cap.
Clarkson’s contract is far from the only one that has gotten general managers in trouble for signing a player for too many years in free agency. Almost every time the justification is similar to the one Nonis gave for the Clarkson signing: We’re not worried about four or five years, we just want to win right now.
Most of them never win “right now,” and almost all of them are looking for a way out within two years.
Between the summers of 2009 and 2016 there were 35 unrestricted free agents signed to contracts of five years or longer.
What sort of return did teams get on those investments?
Let’s start with this, showing the result of each signing.
[Related: PHT 2019 Free Agent Signing Tracker]
This only includes players that actually changed teams as UFA’s. It does not include re-signings of players still under contract with their current team (contract extensions), or the re-signing of restricted free agents.
• Fourteen of the 35 players were traded before the end of their contract term. That includes nine players that were traded before completing three full seasons with their new team. Most of these trades were salary dumps or an exchange of undesirable contracts.
• Ten of the contracts ended in a buyout, usually after three or four seasons.
• There are only three players signed during this time period that are still playing out their contracts with their current teams: Zach Parise and Ryan Suter in Minnesota, and Michael Frolik with the Calgary Flames. The latter has been mentioned in trade rumors for more than a year now.
• Only four players played out the entire term with the team that signed them: Paul Martin with the Pittsburgh Penguins, Anton Stralman with the Tampa Bay Lightning, Brian Gionta with the Montreal Canadiens, and Dan Hamhuis with the Vancouver Canucks.
• Three players had their careers ended by injury before the duration of the contract: Marian Hossa with the Chicago Blackhawks, Ryane Clowe with the New Jersey Devils, and Mattias Ohlund with the Tampa Bay Lightning.
• On average, those 35 players played out just 57 percent of their contract term with the team that signed them. Fourteen of them played out only half of the contract or less.
• If you want to go with the “I don’t care what happens in six years as long as we win the Stanley Cup with this player” argument, the only players in the above sampling that actually won a Stanley Cup with the team that signed them during their contract were Hossa in Chicago and Matt Niskanen and Brooks Orpik in Washington. The only others to even play in the Stanley Cup Final were Anton Stralman, Valtteri Filpulla, and Matt Carle in Tampa Bay, and Brad Richards with the New York Rangers (he was bought out the following summer after three years of a 10-year contract).
What did teams learn from this sampling?
Mostly nothing, because they have kept doing it.
Between the 2016 and 2018 offseasons there were 13 UFA contracts of five years or more signed, and the early returns are already looking disastrous.
In the summer of 2016 the following deals were signed.
- David Backes to the Boston Bruins for five years at $6 million per year
- Kyle Okposo to the Buffalo Sabres for seven years at $6 million per year
- Frans Nielsen to the Detroit Red Wings for six years at $5.25 million per year
- Milan Lucic to the Edmonton Oilers for seven years at $6 million per year
- Loui Eriksson to the Vancouver Canucks for six years at $5.5 million per year
- James Reimer to the Florida Panthers for five years at $3.4 million per year
- Andrew Ladd to the New York Islanders for seven years at $5.5 million per year
Not sure there is anybody that would look at any of those contracts just three years later and argue that any of those teams are getting what they hoped to get. Reimer has already been traded so the Panthers could give another long-term deal to a different goalie (Sergei Bobrovsky) this offseason, while the rest of the contracts have all quickly become an albatross for every team that signed them.
There were six contracts signed over the 2017 and 2018 offseasons with Alexander Radulov, Karl Alzner, John Tavares, James van Riemsdyk, Jack Johnson, and John Moore all getting contracts of five years or more.
So far the Radulov and Tavares contracts look to be the best investments and have provided the most return.
Alzner spent time in the AHL this past season, while Johnson has been the subject of trade rumors after just one season in Pittsburgh.
This offseason seven teams have decided to bet against history and take their chances on long-term deals.
- Vancouver signed Tyler Myers to a five-year contract
- New York signed Artemi Panarin to a seven-year contract
- Florida signed Bobrovsky to a seven-year contract
- Pittsburgh signed Brandon Tanev to a six-year contract
- Nashville signed Matt Duchene to a seven-year contract
- New York Islanders re-signed Anders Lee to a seven-year contract
History suggests that probably at least five of these players will be playing for a different team within two or three years.
The players that have had the highest chances of playing out most of their contract are the high-end players (first-or second-line forwards; top-pairing defenders) that are still reasonably close to the prime of their careers, so that might be good news for the Rangers and Panarin and maybe -- emphasis maybe -- Duchene and the Predators.
All of the rest? These look like textbook deals that are destined to end in a salary dump trade or a buyout within a couple of years.
If a player makes it to unrestricted free agency you should know what you are bidding on and adjust your expectations accordingly. It is usually a player that has almost certainly already played their most productive hockey in the NHL, and it is usually a player that their former team didn’t feel was worth the money or term they were going to be able to get on the open market. It is rare that a team allows a player it actually wants to re-sign and values make it to free agency.
Elite players like Tavares and Panarin are the exception.
The end result is a bidding war for a declining player that probably isn’t as good as you think, which then ultimately leads to a team paying a player to NOT play for them (buyout), or trading them for another player another team doesn’t want, or giving up a more valuable asset to entice a team to take your bad contract in a trade.
NHL Free agency: Sometimes the best way to win is to not play.