The San Jose Sharks and Evander Kane formally settled Kane’s backlog of claims of wrongful termination on Friday, ending the story more than eight months after the Sharks terminated his contract. Kane has since signed two contracts with the Edmonton Oilers, who were not affected by the terms of Friday’s settlement.
The Sharks’ salary cap for this season and beyond will also be unaffected by the unprecedented settlement.
That’s because San Jose’s penalty will be applied retroactively to last season’s cap, which, according to multiple sources, has reportedly never happened in the 17 years since the NHL switched to the limit system. due in 2005.
Although no party directly involved in the negotiations will confirm the exact details of Face every daythe deal is designed to make Kane ‘all-in’ from the difference between the money remaining on his contract with the Sharks and the new contract he signed with the Oilers.
The Oilers signed Kane to a four-year, $20.5 million extension on July 12 in the hours before the free company opened. His new contract requires paying $16.5 million over the first three years, the remainder of Kane’s original San Jose contract, which runs until 2024-25.
San Jose owes Kane $19 million for those three seasons, leaving a $2.5 million difference.
As a result, Kane will receive a one-time cash payment from San Jose in the neighborhood in the amount of $2.5 million to make him the whole thing. (One source quibbled with that number, saying Kane wasn’t fully perfected, but it’s close to that number.)
Since the Sharks ended last season with just over $4.97 million in pay caps, according to CapFriendly.com, all of that roughly $2.5 million penalty will be applied retroactively and San Jose will no limited consequences in the future. That’s the best case scenario for San Jose; they just cut a check and move on.
All previous wage cap penalties issued – most notably a complaint about Mike Richards’ termination of contract with the Los Angeles Kings in 2015 – affected the season’s pay cap. Future. The Kings are doing a punishment for Richards until 2032; This season, the figure is $900,000, more than the league’s minimum wage.
“We are pleased that its terms will not adversely affect the team, either financially or competitively, this season or in the future,” Sharks said in a statement on Friday.
For Kane, who filed for bankruptcy, the one-time $2.5 million payment is a welcome relief – on top of the $6,125 million he made in calendar year 2022 in cash alone. contract award.
“I played some of my best hockey in San Jose and gave it all I had on the ice,” Kane said in a statement. announced on friday. “I really enjoyed playing in front of the Sharks fans and appreciate my loyal fans who have supported me all this time. Adversity can knock you down or make you stronger, it definitely makes me stronger. I’m glad to finally close that chapter in my hockey career. Edmonton let’s go! “
A settlement is always the most likely outcome for this case as it minimizes the risk for both parties of an all-or-nothing decision from a neutral arbitrator. It also removes the possibility for the Oilers (and Kane) that his agreement will be reinstated by the arbitration, void his new deal in Edmonton.
Now, with the relative ease with which the Sharks erased more than $20 million from their books, the question is whether this outcome prompts other NHL teams to take a similar step with a player. or contract they consider problematic.
