article: Why the Rangers Had to Let Jesper Fast Go in Free Agency

https://theathletic.com/2130143/2020/10/10/new-york-rangers-jesper-fast-free-agency?source=user-shared-article

Yet Fast did walk, and the Rangers will miss him terribly.

 

But why did it have to happen?

 

Well, it wasn?t a matter of worth, that?s for sure. It had everything to do with cap space, bonus money and roster size. It is why the Rangers were really, except for filling some minor-league holes, done with free agency day and subsequent days after they signed defenseman Jack Johnson for $1.15 million on a one-year deal on Friday.

 

CapFriendly.com has the Rangers with $19.729 in cap space for 2020-21. All good there, right? Nope. The Rangers have all these top prospects on bonus-laden entry-level contracts. Depending on which youngsters are on the roster ? and certainly Alexis Lafreniere, Kaapo Kakko, Adam Fox, Igor Shesterkin, Filip Chytil, Ryan Lindgren, Julien Gauthier will be ? there are going to be mega bonuses to be counted. Two others, K?Andre Miller and Morgan Barron, will also count if they make the team. The Rangers have to account for between $11 million and $12 million there. They must account for the amount of the charge if all bonuses are reached, whether they are actually reached or not (Lafreniere is not signed yet, but he will come in at the ELC max $925,000 and $2.85 million of bonuses).

Tldr; No free cap space, even after Staal trade and Lundqvist buyout, because of performance bonus overages and likely RFA cost.

It’s just that the full article states part of this is that the existence of a Gauthier and Barron possibly making the team made it harder to keep Fast. These “mega” bonuses for next season would be rolled into the following seasons cap no? If we were so lucky that every guy hits a crazy max bonus we have to trade someone then next summer. Fast signed 2m per with no clauses.

I’m not sure who met what bonus this past season. I’m pretty sure Shesh and Kakko didn’t met any max bonus.

It’s just that the full article states part of this is that the existence of a Gauthier and Barron possibly making the team made it harder to keep Fast. These “mega” bonuses for next season would be rolled into the following seasons cap no? If we were so lucky that every guy hits a crazy max bonus we have to trade someone then next summer. Fast signed 2m per with no clauses.

 

I’m not sure who met what bonus this past season. I’m pretty sure Shesh and Kakko didn’t met any max bonus.

The problem is that they are only allowed a 7.5% bonus cushion (6.1M). They are currently over that (1.1M over) and will be adding at least 2.85M more with just Lafreniere. All of that extra over the cushion has to be deducted from this year's available cap space.

They have zero operating space.

I wish bonuses were listed when a player signed a contract so we could know how much they're actually getting paid. It makes no sense to see, wow 19 million in cap space! And then be told actually there's fake money that's not accounted for that's not listed but counts against the cap.

So that solves the mystery. The cap didn't go up and that screwed the Rangers. This year is basically another year of growth, running the same team back again with even more rookies in the lineup.

Next season the dead cash comes off the books and the Rangers will have some where around 30-40 million in space.

The problem is that they are only allowed a 7.5% bonus cushion (6.1M). They are currently over that (1.1M over) and will be adding at least 2.85M more with just Lafreniere. All of that extra over the cushion has to be deducted from this year's available cap space.

 

They have zero operating space.

Very tight. Not sure about zero. Considering how dirt cheap Fast was willing to accept, I think you had to make that deal and look to sacrifice elsewhere. There are a couple of teams that have been taking some players. I feel like the right thing to do would have been to move Smith since he is gone after next year regardless. I’m sure they tried before but once FA hit it seemed like teams started taking on salaries a bit more. Fast is the kind of guy at that price point that is exactly the bargain contract that every good team needs so they can fill a hole and spend elsewhere more. He even signed for term too.

Can't they kick any accrued bonuses to the next year? How does that work, exactly?

Pretty disappointing. They're stuck with young, developing players, on massive bonus incentives they won't hit, and some of whom aren't particularly effective NHL options.

They're really gonna blow this year, and probably next, and then they have more cap issues after that.

They've really botched this roster. It currently looks like the Leafs lite.

Can't they kick any accrued bonuses to the next year? How does that work, exactly?

 

Pretty disappointing. They're stuck with young, developing players, on massive bonus incentives they won't hit, and some of whom aren't particularly effective NHL options.

 

They're really gonna blow this year, and probably next, and then they have more cap issues after that.

 

They've really botched this roster. It currently looks like the Leafs lite.

They can, but they can only have a maximum of 7.5% of the current cap in rolloverable bonuses that they can exceed the upper cap limit by (aka bonus cushion). They are exceeding 7.5% by a good amount, which means the additional amount needs to be applied against this year's cap to keep the Rangers cap compliant. Even if the bonuses aren't earned or realized yet, they have to account for them as if they are achieved already.

It also means they will likely have several million against next year's cap. The exact number is determined by how much of that potential bonus money is achieved.

There's a little bit of misinformation and confusion regarding bonuses and rollover so I'm going to address that by quoting sections of the CBA. For those wanting to view the CBA themselves it's accessible through the NHLPA website as well as the recent memorandum that was written this summer.

Article 11.9.d

Bonuses earned by a Player pursuant to an SPC shall be paid within the period set forth in the SPC, provided, if no period is set forth, then within ten (10) days of the Club's last NHL Game in the League Year in which such Bonuses are earned and payable. Players shall receive awards earned as soon as practicable after entitlement. In cases where the Club is to receive monies from the League to pay for such awards, the Club shall disburse such monies to the entitled Players as soon as practicable after receiving such monies from the League.

Article 50.5.h.ii

A Club shall be permitted to have an Averaged Club Salary in excess of the Upper Limit resulting from Performance Bonuses solely to the extent that such excess results from the inclusion in Averaged Club Salary of: (i) Exhibit 5 Individual "A" Performance Bonuses and "B" Performance Bonuses paid by the Club that may be earned by Players in the Entry Level System and (ii) Performance Bonuses that may be earned by Players pursuant to Section 50.2(b)(i)© above, provided that under no circumstances may a Club's Averaged Club Salary so exceed the Upper Limit by an amount greater than the result of seven-and-one-half (7.5) percent multiplied by the Upper Limit (the "Performance Bonus Cushion"). 


Article 50.5.h.iii

At the conclusion of each League Year, the amount of Performance Bonuses actually earned, including, without limitation, and for purposes of clarity, (i) Exhibit 5 Individual "A" Performance Bonuses and "B" Performance Bonuses paid by the Club that may be earned by Players in the Entry Level System and (ii) Performance Bonuses that may be earned by Players pursuant to Section 50.2(b)(i)© above, shall be determined and shall be charged against the Club's Upper Limit and Averaged Club Salary for such League Year. To the extent a Club's Averaged Club Salary exceeds its Upper Limit as a result of: (i) Exhibit 5 Individual "A" Performance Bonuses and "B" Performance Bonuses paid by the Club that may be earned by Players in the Entry Level System and (ii) Performance Bonuses that may be earned by Players pursuant to Section 50.2(b)(i)© above, then the Club's Upper Limit for the next League Year shall be reduced by an amount equal to such excess.

How does this affect the Rangers and specifically Fast?

The Rangers aren't affected by the bonuses currently. They aren't payable and won't be payable until they're achieved as outlined in article 11.9.d. The issue with bonuses is that as members of the public we aren't privy to the specific bonuses each player has. We can know the total number they're eligible for, but we're typically left in the dark as to whether they're class A or B, and what the specific qualifiers are. In some cases we can infer what class of bonuses were handed out. In the cases of Kakko and Shesterkin we know that both are receiving maximum class A ($850k) plus class B bonuses (maximum of $2M in Shesterkin's case, while Kakko is short of maximum by $200k). For those curious as to what Class A or B bonuses are, you can reference my post linked here where I discuss them briefly or you can check Exhibit 5 in the CBA which goes into extensive detail. Given that we don't know the specific bonuses we don't know if specific class A bonuses are payable throughout the season. Those don't present an issue currently, but could slightly midway through the season if you have Kakko, Lafreniere, Shesterkin, and Fox all achieving maximum class A for a total hit of $3.4M. Class B bonuses given their nature are only charged at the end of the season. That's where rollover becomes an issue.

As outlined in section 50.5.h.ii, there's a 7.5% cushion for bonuses. That would come in handy midseason in the case of Class A bonuses as I previously mentioned, but is mostly relevant at the end of the season. The total cap hit at the end of the season is what we're most worried about and where that 7.5% really kicks in should any of the Class B bonuses be achieved especially to the maximum. Where the Rangers are truly concerned is the amount of rollover going into next season which is otherwise dead cap space and not included in future 7.5%.

With Brook's most recent information we've been told that the deal-breaker for Fast was the extra year. The Rangers are afraid of multi-year contracts because of the potential risk of rollover exceeding that 7.5%, not the current space itself. The Rangers still quite literally have $19.7M in cap space. That isn't the issue. The issue is how much space they have by the end of the season because that's what leads to using the 7.5% cushion and thus being forced to rollover.

There's a little bit of misinformation and confusion regarding bonuses and rollover so I'm going to address that by quoting sections of the CBA. For those wanting to view the CBA themselves it's accessible through the NHLPA website as well as the recent memorandum that was written this summer.

 

Article 11.9.d

 

 

 

Article 50.5.h.ii

 

 

 

Article 50.5.h.iii

 

 

 

How does this affect the Rangers and specifically Fast?

 

The Rangers aren't affected by the bonuses currently. They aren't payable and won't be payable until they're achieved as outlined in article 11.9.d. The issue with bonuses is that as members of the public we aren't privy to the specific bonuses each player has. We can know the total number they're eligible for, but we're typically left in the dark as to whether they're class A or B, and what the specific qualifiers are. In some cases we can infer what class of bonuses were handed out. In the cases of Kakko and Shesterkin we know that both are receiving maximum class A ($850k) plus class B bonuses (maximum of $2M in Shesterkin's case, while Kakko is short of maximum by $200k). For those curious as to what Class A or B bonuses are, you can reference my post linked here where I discuss them briefly or you can check Exhibit 5 in the CBA which goes into extensive detail. Given that we don't know the specific bonuses we don't know if specific class A bonuses are payable throughout the season. Those don't present an issue currently, but could slightly midway through the season if you have Kakko, Lafreniere, Shesterkin, and Fox all achieving maximum class A for a total hit of $3.4M. Class B bonuses given their nature are only charged at the end of the season. That's where rollover becomes an issue.

 

As outlined in section 50.5.h.ii, there's a 7.5% cushion for bonuses. That would come in handy midseason in the case of Class A bonuses as I previously mentioned, but is mostly relevant at the end of the season. The total cap hit at the end of the season is what we're most worried about and where that 7.5% really kicks in should any of the Class B bonuses be achieved especially to the maximum. Where the Rangers are truly concerned is the amount of rollover going into next season which is otherwise dead cap space and not included in that 7.5%.

 

With Brook's most recent information we've been told that the deal-breaker for Fast was the extra year. The Rangers are afraid of multi-year contracts because of the potential risk of rollover exceeding that 7.5%, not the current space itself. The Rangers still quite literally have $19.7M in cap space. That isn't the issue. The issue is how much space they have by the end of the season because that's what leads to using the 7.5% cushion and thus being forced to rollover.

The thing though is that I can’t really see how a 2m contract specifically would break the bank either way 3 years from now. Regardless of when we would be up against the cap, a 2m salary isn’t that far off from a realistic vet contract. Fast wouldn’t have been the problem. It would have been another player that priced himself out of our roster. Fast at 2m is the type of contract that is so cheap, it allows more wiggle room elsewhere in the future. If is this bad, I’d almost rather them have still traded Georgiev and had Kinkaid backup at under 1m so we could have kept a pretty valuable cheap role player

The thing though is that I can’t really see how a 2m contract specifically would break the bank either way 3 years from now. Regardless of when we would be up against the cap, a 2m salary isn’t that far off from a realistic vet contract. Fast wouldn’t have been the problem. It would have been another player that priced himself out of our roster. Fast at 2m is the type of contract that is so cheap, it allows more wiggle room elsewhere in the future. If is this bad, I’d almost rather them have still traded Georgiev and had Kinkaid backup at under 1m so we could have kept a pretty valuable cheap role player

I don't quite see how either, but they're evidently afraid of the year-after-year rollover. They don't want this season to cause a potentially avoidable chain reaction of rollover.

$2m is pretty cheap for a roster spot, this year or three year's from now. You have to give that roster spot to someone else now. How much will he be making. This seems to make a bottom six comprised almost entirely of less than $1m a year glorified AHLers look like the future.

If we couldn't make $2m for three years work with this guy, we are in serious trouble as far as taking the necessary steps to build a contender.

$2m is pretty cheap for a roster spot, this year or three year's from now. You have to give that roster spot to someone else now. How much will he be making. This seems to make a bottom six comprised almost entirely of less than $1m a year glorified AHLers look like the future.

 

If we couldn't make $2m for three years work with this guy, we are in serious trouble as far as taking the necessary steps to build a contender.

Only thing i can think of is the Rangers knew Seattle would just steal him when they couldn't protect him anyways? or he just didn't want to play in NY anymore.

Only thing i can think of is the Rangers knew Seattle would just steal him when they couldn't protect him anyways? or he just didn't want to play in NY anymore.

Maybe he is a republican that is fed up with Cuomo :)

Maybe he is a republican that is fed up with Cuomo :)

Who isn't

Maybe he is a republican that is fed up with Cuomo :)

Who isn't

I don't quite see how either, but they're evidently afraid of the year-after-year rollover. They don't want this season to cause a potentially avoidable chain reaction of rollover.

It's total cap mismanagement. Gorton showing why he's not a great GM.

Not really. Bonus overage is a new problem expounded by having drafted a #2 and #1 OA the last two seasons, taking up almost the entire bonus cushion. In combination with a flat cap from a once-a-century kind of virus. Can't really plan for any of that.

He is on the hook for having signed Shattenkirk and Smith. Two bad signings that are a blemish, but he has done a lot more good than bad and it's not even close.

Honestly, I think if the Rangers wanted to keep, or needed to keep Fast, they would have. I just think they want to move on from Fast, and get someone younger/faster/better to develop into his role....just my 2 pennies.

Good call Ozzy. They could be really high on new, young internal options like Morgan Barron and Justin Richards. They might also want to see how Gauthier does with an expanded role.

Not really. Bonus overage is a new problem expounded by having drafted a #2 and #1 OA the last two seasons, taking up almost the entire bonus cushion. In combination with a flat cap from a once-a-century kind of virus. Can't really plan for any of that.

 

He is on the hook for having signed Shattenkirk and Smith. Two bad signings that are a blemish, but he has done a lot more good than bad and it's not even close.

Kakko has relatively low chances of achieving any type of Class B bonuses short of a season that puts him in awards conversation. Shesterkin and Lafreniere are really the issues here. You have two players who could quite easily end up in the Calder conversation and All Rookie team which would likely be among their B bonuses. Kakko would almost exclusively achieve A bonuses.

Kakko has relatively low chances of achieving any type of Class B bonuses short of a season that puts him in awards conversation. Shesterkin and Lafreniere are really the issues here. You have two players who could quite easily end up in the Calder conversation and All Rookie team which would likely be among their B bonuses. Kakko would almost exclusively achieve A bonuses.

Sure, but the Rangers can't go into the season disregarding the $10M potential bonus money on the hope that enough of them don't get hit to be an issue. They have to prepare for unlikely scenarios.

Sure, but the Rangers can't go into the season disregarding the $10M potential bonus money on the hope that enough of them don't get hit to be an issue. They have to prepare for unlikely scenarios.

Right, but the Rangers are also more aware of what those bonus clauses are and it's not unheard of to have a team make specific moves to avoid having players hit certain bonuses. Though that would apply to Class A more than B. Class B bonuses are incredibly hard to achieve and based on Kakko's previous season the Rangers could probably get away with expecting him to be short of them. Class B entails finishing top 10 in various statistical categories league-wide or top 3-5 in trophy recognition. In the case of Shesterkin, it may be possible that he dominates some goaltending categories and could finish in Calder and/or Vezina voting. I could see him achieving maximum B bonuses.