Playing “Tag” with the NHL CBA and how it affects the Ducks

With the pending return of Scott Niedermayer, the red-hot issue of “tagging” and “tag space” has been brought to everyone’s attention for perhaps the first real time this season. Many, many people are confused; including NHL General Managers themselves. I have read up on the issue and especially thanks to the latest info posted by THN columnist Ken Campbell (who received info straight from Ducks’ capologist David McNab), I think I finally understand. My hope is I can summarize things in simple form for all of you, my readers.

The “tagging” issue, while only brought up this past week, actually started for Anaheim the day they extended Chris Kunitz. You see the “tagging” rule in the CBA applies in different cases; whenever a player’s contract is extended or whenever a player with a multi-year deal is acquired. In this case, acquired can apply to being called-up, being traded for, coming off suspension or being signed after Dec.1st in the current season. Due to the fact that the Ducks has to keep cap room open should Niedermayer return, Anaheim was strongly up against the cap when they began the season. They signed Chris Kunitz to an extension which averaged out to 3.725 million a season. Under the “tagging” rule, since Anaheim didn’t have current cap space this year to fit the average of the extension in, the amount is set as “tagged” salary for next year (minus the current cap hit of Kunitz’s expiring deal). Thus, we end up with 2.669 million “tagged” for next season.

Next, not too long ago, the Ducks extend the contract of one Ryan Getzlaf. They agree to a deal with an average cap hit of 5.325 million. Once more, the Ducks are still to close to the cap upper limit this year to fit that in. What do we do? Add more tagged salary to next season. Subtracting his current, expiring contract we end up adding another 4.585 million to next year’s “tagged” space.

Now at no time during this season, is tagged space plus committed salaries allowed to exceed the current cap limit for next year. How do we reduce the tag? We earn “tagging space” of course. How do we earn “tagging space”? We gain credit for every player we deal or otherwise move or who is on our active roster who has an expiring contract. This means in Anaheim’s case, we gained approximately 6.849 million from Corey Perry, Joe DiPenta, Jonas Hiller, Ilya Bryzgalov, Drew Miller, Maxim Kondratiev, Jason King, Ryan Carter, Mark Mowers, Geoff Platt, Brian Sutherby being on our active roster at some point or another as well as buying out Tyler Wright. Pro-rated cap hits come into play, but as that would complicate things tremendously, just believe the approximate amount is accurate.

Still following along? Good.

This brings us to “tagged space” spent of 7.254 versus 6.849 “tagged space” earned. We are short about 400K. How is this possible? Well, “tagged space” plus committed salaries for next season must be under the current cap limit, which is 50.3 million dollars. Let’s see how much we have committed for next season. By my count of active Ducks, including Niedermayer’s contract as he is signed for next season, we are on the hook next season for 53.271 million. Add in the 400K, giving us 53.671 million and we are over the limit of 50.3 million. We would appear to be over by about 3.371 million dollars.

Here’s where things get tricky. Scott Niedermayer, who earns a nice 6.75 million this year and next, decides to play again. Since we are after Dec. 1st, the “tagging” rule is applied. Yes, coming off suspension does count as “being acquired”. Due to missing a chunk of the season, if Niedermayer played now, his cap hit this season would be a pro-rated 4.3 million (approximately). As his space this season has already been kept reserved for him, he fits in under our current cap and leaves us with approximately 2.426 million in space this season (this includes the fact some of Jonas Hiller’s bonuses are now impossible to reach at this point in the season and thus subtracted from the cap hit). The amount we saved this year however counts towards the “tag” for next year. Thus, to our credit, we tack on another 2.426 million.

If we compare the 3.371 and 2.436 amounts, we are left with a debt in “tag space” of 935 thousand dollars. This space must be cleared before Niedermayer is allowed to return to active duty. How can it be cleared? The simplest solution would be trading someone who is signed for next season and makes more than that amount, for picks/prospects or cheaper players (with the difference in their average salary being enough). Burke may also opt to send players down and hope they get claimed on waivers. Perhaps he will find something even more creative to do.

The point is, for the moment, Burke isn’t between a rock and a hard place as many people think. Trading Sean O’Donnell for a low draft pick is a common opinion as something extremely plausible. Burke himself has said he has an offer on the table and if no one beats it, he will simply pull that trigger. In other words, expect to see Scott return potentially, this week.

Did you think we were finished? No, not yet we aren’t. There are still implications for the Ducks and potential moves. Teemu Selanne is the first name on everyone’s list. The answer is, assuming he only signs a one-year deal, he is unaffected by the tagging rules. Thus he could sign right now for 2 million dollars for the remainder of the season and fit just fine. While the cap space left this season has already been tagged, that doesn’t prevent it from being used this season at all.

Corey Perry is someone who may be affected by the rule, however. The Ducks cannot offer him a reasonable extension at this point in time without moving someone making something significant, for example Mathieu Schneider. This opens the possibility that Perry could be another RFA target this summer, as Penner was last year.

Anaheim would also need to acquire more tagging room in any deadline deals they wish to act on, if any players they receive are on contracts past this season. That might make deals just a wee bit harder for Burke and crew.

Finally, this new rule might just explain the Ilya Bryzgalov move. Beyond doing it for reasons of ‘class’ and ‘my word’, Burke earned extra tag room by moving Bryzgalov and calling up Jonas Hiller, who with potential bonuses and an expiring contract this season gave Anaheim more tag credit. Perhaps Burke knew Scott was returning before he let on, after all.

I hope this summarizes everything for people, and while other sources have different amounts than I do and perhaps a different way of calculating things, everyone is in agreement the Ducks need to clear approximately only $900K to allow Niedermayer to play. Thanks for reading, feel free to leave some comments.