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We are less than two months away from the NHL’s March 3 trading deadline. daily showdown.
Today we will focus on the salary cap situation and explain how in a season when there is little space, select team groups can arm themselves with leftover funds to gain assets and help their opponents handle trades. increase.
This deadline can be called the third-party broker year.
2023 trading deadline countdown: 56 days
Let’s start with a little background.
History of Third Party Brokers
The NHL and the NHL Players Association began allowing teams to keep their salaries in trade starting in 2013. The franchise also allowed the third team to keep a portion of his salary before sending him to his final destination.
The Vegas Golden Knights were the first team to bring Ottawa broker Derrick Blassard to Pittsburgh.
The third team involved in Trade Park allocates a portion of its players’ salaries towards the salary cap for the rest of the season. Players actually receive a portion of their salary from that team. In exchange for its services, the “third party broker” receives the assets.
NHL teams can keep up to 50% of player salaries in a single transaction. However, third-party brokers can also hold up to 50%. So, in essence, an acquisition team (usually a candidate tight on salary cap limits) can receive a player for just 25% of his AAV as originally stated.
In the NHL, cap space is “use it or lose it.” So unless the owner sets an internal budget limit, the draft he sees little reason not to use every available dollar to bring back the pick. It’s essentially “buying” a draft pick for real cash. You could use it, but you can’t take the remaining space with you to the next season.
Why Third Party Brokers Matter at This Trading Deadline
2023 can be called the year of third-party brokers. That’s because it’s his third (and likely) last year with the NHL operating in a flat salary cap environment as a result of the pandemic.
Salary cap space is more important than ever. According to CapFriendly, 19 of his 32 teams in the league operate within his $2 million. About 17 of them operate on his LTIR. So technically we don’t have cap space and we haven’t gained space every day all season.
On top of that, expect big name and big money players to make their move this season. To date, the highest full AAV of a player involved in a third-party deal was Nick his $5.5 million in Foligno. Patrick Kane and Jonathan Toews’ trading block has his AAV in 8 digits. They are two of only his 14 players to earn over $10 million in AAV in the league, only one of whom (Jack Eichel) has been traded. This is the first time the Sabers have retained Eichel’s salary at all, but as a loan player, it’s not only likely, but sensible for Chicago to keep half when he leaves.
what would that look like? This is a fictitious real world example.
Chicago trades Jonathan Toos to Colorado with help from Anaheim.
Toews’ cap hit is $10.5 million.
> Chicago holds 50%: $5.25 million
> Anaheim holds 50%: $2,625,000
> Toews arrives in Colorado with a $2.625 million salary cap.
Please note that the amount stated is for cap purposes and not the actual amount. 78% of the $10.5 million has already been paid in real cash, with retaining and winning teams paying only the remaining percentage.
This is one reason why some teams prefer to wait as close to the deadline as possible to acquire players. If there is cap space, more money is accrued each day, and players are paid in caps for a different team each day, and by that team, the actual costs and cap dollars are less.
What can third-party brokers get in return?
According to CapFriendly, there were six transactions brokered by a third party. The third team received 4th through 6th picks, depending on the amount of money retained.
The breakdown is as follows.
March 21, 2022: Columbus to Carolina (via Florida) Max Domi
Third Party Broker: Panthers
Pick Received: 2022 Round 6 Pick
Salary Cap Space Retained: $1.325 million
Actual cash cost: $265,000
April 12, 2021: Mattias Janmark Chicago to Vegas (via San Jose)
Third Party Broker: Shark
Picks Received: 2022 Round 5 Picks
Salary cap space preserved: $562,500
Actual cash cost: $130,297
April 11, 2021: Nick Foligno Columbus to Toronto (via San Jose)
Third Party Broker: Shark
Picks Received: 2021 Round 4 Picks
Salary cap space retained: $1.375 million
Actual cash cost: $320,043
April 10, 2021: David Sabbard Columbus to Tampa Bay (via Detroit)
Third-party broker: Red Wings
Picks Received: 2021 Round 4 Picks
Salary Cap Space Retained: $1,062,500
Actual cash cost: $265,625
February 24, 2020: Robin Lehner Chicago to Vegas (via Toronto)
Third Party Broker: Maple Leafs
Picks Received: 2020 Round 5 Picks
Salary cap space retained: $1.1 million
Actual cash cost: $242,473
February 23, 2018: Derrick Blassard Ottawa to Pittsburgh (via Vegas)
Third Party Broker: Golden Knights
Pick Received: 2018 4th Round Pick
Salary cap space retained: $2 million
Actual cash cost: $462,366
Armed with this data, we can see that the actual cash cost of buying a draft pick as a third-party broker has historically been:
4th round pick: $350,000
5th round pick: $185,000
6th round pick: $125,000
Considering the Carolina Hurricanes paid $833,333 in real cash to acquire Patrick Malraux’s contract in 2019, they’ve acquired the 13th overall pick (Seth Jarvis) for 2020. , we can try to estimate the value of these nominations at their actual cash cost.
1st round pick: $800,000+
Second round pick: $650,000
Third round pick: $500,000
4th round pick: $350,000
5th round pick: $185,000
6th round pick $125,000
7th round pick: $100,000
Interestingly, we haven’t seen a third-party deal mediated by a cap hit on the scale of Kane or Toews, but on a real cash basis it’s unlikely to be the most expensive player to hold this deadline. No. They’re only making $2.9 million in real cash earnings this season. That would hold around $160,000 in real cash, somewhere between the fifth and sixth round picks if a third-party team is involved.
To that credit, Timo Meyer of San Jose will move. His final salary is his $10 million, and his $10 million high qualifies his offer because a third-party his team holds the maximum amount in real cash, about I have to pay $554,000.
This means that third-party teams are most interested in engaging Meier if the buying team is willing to pay anything between the 2nd and 3rd round picks. Cha-chin!
Which teams participate in the third party broker game?
Rank them in order of perceived interest and ability.
1. Arizona Coyote
Projected cap space: $34 million
We know Yote are eager to get as many draft picks as possible. Participating in the retention game makes sense.
2. Chicago Blackhawks
Expected cap space: $9.5 million
As players like Toews, Kane, Max Domi and Andreas Athanasiou start shipping, the numbers above will increase slightly. The Blackhawks have let everyone know that they are willing to act as a dumping ground for bad contracts.
3. Anaheim Ducks
Projected cap space: $26.5 million
Anaheim won’t be in jeopardy of the cap floor, but that’s a number that could grow. I let my team know that I could use the space to my team advantage to get more picks.
4. Columbus Blue Jacket
Expected cap space: ~$7 million (LTIR)
The Blue Jackets are going to be a mean player in this area as they are more flexible than the numbers suggest: they could move Jakub Voracek (who is not expected to play again this season) to the LTIR anytime. and create another $8 million in space. .
5. Buffalo Sabers
Projected cap space: $33 million
Why are the Sabers not participating? There is no reason not to join the game. They already have three of his second-round picks in the next draft. It would be nice to make up for his lost third-round pick with the Eichel deal.
6. Detroit Red Wings
Projected cap space: $9 million
It’s still a little early to predict Winged Wheel’s standings. They can use their space to become buyers and get ready for the next season or help drive the playoffs. Yes, and there are always enough friends in the game to join the mix.
Be careful…
of Florida Panthers If they sell their work. They don’t have a first-round draft pick until 2026, and, as they showed last season when they were involved in sending Max Domme to a potential Eastern Conference playoff foe, they’re trying to You could be the go-between trying to get a lot of bullets back…in the draft.
Also watch out for teams with unexpected LTIR spaces. You may be able to achieve the same thing. Florida was tight on caps last season, but in the days leading up to the deadline, Aaron Ekblad was down and missed the rest of the regular season, providing newfound flexibility.
