Johan Franzen signs extension, 11 years

[Rice 42]

If it is loaded in the 1st few years kiss Hossa good-bye.

Cap hit is determined by the average salary over the course of the contract. It most likely is front-loaded in order to keep Franzen happy because he's going to be playing for peanuts (relatively) at the end of the contract. The fact that it's front-loaded is what's going to help the Wings keep Hossa.

[sibiriak 84]

So, if Franzen retires after 6-7 years, he will have played for $5-6 mil a year, with the cap hit of only about $3.5 mil/year? And the team won't have to pay him the reminder of the money if he retires early? Looks like Holland has found a genu-ine scott-free loophole in the CBA!

I think, for his next number, he signs Hossa to a 20-year $50 mil. contract. That's only $2.5 mil. a year as far as the cap is concerned. Structure it like 9 8 7 7 6 4 2 1 0.5 0.5 0.5 ...

[Z and D for the C 712]

it's the right move (if it's a good price), but i'll be sad to see hossa go.

This

[Rice 42]

it's the right move (if it's a good price), but i'll be sad to see hossa go.

If anything, I think the length of the deal means Holland's going to do everything he can to keep both Franzen and Hossa.

[egroen 384]

So, if Franzen retires after 6-7 years, he will have played for $5-6 mil a year, with the cap hit of only about $3.5 mil/year? And the team won't have to pay him the reminder of the money if he retires early? Looks like Holland has found a genu-ine scott-free loophole in the CBA!

I think, for his next number, he signs Hossa to a 20-year $50 mil. contract. That's only $2.5 mil. a year as far as the cap is concerned. Structure it like 9 8 7 7 6 4 2 1 0.5 0.5 0.5 ...

Correct, though the NHL can reject a contract which is designed to supercede the cap (like a 20 year contract for a 30 year-old).

Holland could also trade Franzen towards the end of his career for a cash-strapped team in need of a high cap hit, but low salary, in order to hit the cap floor.

I see very little risk with these type of contracts, and a lot of reward.

If anything, I think the length of the deal means Holland's going to do everything he can to keep both Franzen and Hossa.

I agree. This coupled with the long-term Zetterberg contract leads me to believe Holland has a master plan.

Think about it: We could literally be getting Zetterberg + Franzen for a comparable cap hit of Malkin or Crosby, long term.

Edited April 11, 2009 by egroen

[Majsheppard 203]

PRAISE THE LORD(s) JESUS AND HOLLAND!!!

[Zion 93]

[Vincanni 1]

Mixed feelings on this, though as I was part of the Franzen + a little more cap space > Hossa, I'm happier than I am sad. The only part that worries me is the length of the deal, but if it can push the anuual cap hit to below 4 million a year I'm all for this.

[esteef 2,679]

YEE-HAW!!

esteef

[Rivalred 630]

Cap hit is determined by the average salary over the course of the contract. It most likely is front-loaded in order to keep Franzen happy because he's going to be playing for peanuts (relatively) at the end of the contract. The fact that it's front-loaded is what's going to help the Wings keep Hossa.

And here I thought it was the total added up per season.

[Guest Shoreline]

PRAISE THE LORD(s) JESUS AND HOLLAND!!!

Lord Jesus Holland?

Good for Mule and the Wings, even though I'm a bit skeptical of the length of contract, and sort of cringed when I read that after doing a "woohoo!" after reading the topic title. I can see now why term lengths will be an issue at the next CBA.

[titanium2 867]

"Nope, sorry, I want to be a Red Wing..."

[CanadaBoy 151]

Dobre ci zle ? (in a good way or not ?)

Wow that's so close to Polish! (Dobrze czy zle)

If the cap hit is ~3 million, then there is a good chance that we can keep Hossa aswell.

[edicius 3,269]

In Kenny We Trust.

I remain secure that he knows what he's doing and that's why he's still GM of one of the most successful teams in the league.

[detroitdan 0]

If the length of the contract is for 9-10 years, I have to believe that the cap hit is somewhere in the $3-$3.5 million range. And honestly I think it could be lower, especially if it is that length of time. They'll front load it like they did with Hank, and this gives them a great opportunity to re-sign Hossa. In Kenny We Trust indeed.

Edited April 11, 2009 by detroitdan

[CanadaBoy 151]

In Kenny We Trust.

I remain secure that he knows what he's doing and that's why he's still GM of one of the most successful teams in the league.

Fixed

[Majsheppard 203]

If it is loaded in the 1st few years kiss Hossa good-bye.

Average is what counts, it is front loaded just because then the thinking is finanically the books will work better for tax purposes right now when they are making money off of deep playoff runs instead of a more uncertain future.

No. Because if player signs BEFORE he's 35 and retires any time, then the rest of the contract won't count against the cap. I don't know if he would get paid, but I doubt it.

Yeah it works like that because simply put if a player retires the contract is basically dissolved. The player forfits future salaries as he will no longer honor the contractual role of playing. The 35 year old article is really dumb, I cannot figure out what it is for to be honest.

Correct, though the NHL can reject a contract which is designed to supercede the cap (like a 20 year contract for a 30 year-old).

Holland could also trade Franzen towards the end of his career for a cash-strapped team in need of a high cap hit, but low salary, in order to hit the cap floor.

I see very little risk with these type of contracts, and a lot of reward.

I agree. This coupled with the long-term Zetterberg contract leads me to believe Holland has a master plan.

Think about it: We could literally be getting Zetterberg + Franzen for a comparable cap hit of Malkin or Crosby, long term.

Do not forget they can simply buy him out if he starts sucking and have a painful single year against the cap instead of several to come....

Also you have to realize that any injury that would ruin his career negates his value against the cap, though they would still have to pay Franzen the contract value he wouldn't count against the cap if say he had to retire for medical reasons. Another reason the contract is front loaded.

Really this is a variation of what the NFL has been doing for a long time, but they have tried to fix it making it worse for the team and for the players. I hope the league doesn't go crazy and tries to make rules against the Wings for doing this. I mean if Crosby desided to do this to play in Toronto for the rest of his career they wouldn't say a peep, so they better not for us.

[titanium2 867]

Do not forget they can simply buy him out if he starts sucking and have a painful single year against the cap instead of several to come.

Plus, I don't see why Franzen can't be a 3rd line checker in the bottom half of his career. So whenever he starts sucking as a scoring line player he can always revert to being the checker he was when he first came here. Sure the cap hit is a lot for a checking line player but I think the Wings are taking the risk that the cap will increase tremendously by that time.

[egroen 384]

Do not forget they can simply buy him out if he starts sucking and have a painful single year against the cap instead of several to come....

Just a slight correction on this ... Buying out contracts like this is actually not the way to go. It is very complicated, but you would be on the hook for quite a number of years.

When a player is bought-out, the team the player is currently playing for buys out the rest of his contract for 2/3rds of the value left on it. If he has 3 million left, the team pays him 2 million and the player is a free agent. Take Yashin's contract with the Isles. He had 4 years left and was bought out for 17.6 mill (2/3rds of the rest of his contract) When buying out a contract, the team takes a cap hit of double the years left divided by the contract. 2.2 per year for 8 years. (17.6 / (4x2) = 2.2)

The Wings would definitely not want to buy out a contract like Zetterberg's or what I expect Franzen's to look like. One thing to note on a deal like Zetterberg's. It does for all intents and purposes eliminate the possibility of a buy-out under current rules. Detroit would have to carry at least $5.4M in dead cap space in the last two years if they buy the contract out. In fact, if they buy it out with more than 2 years on the deal, the cap hit in the last two years would exceed the original $6M number. Lecavalier's deal is even worse in this regard.

Edited April 11, 2009 by egroen

[Chunkylover 26]

Detroit Free Press says 11 years.

[VladyIBELIEVE16 257]

In Kenny We Trust.

I remain secure that he knows what he's doing and that's why he's still GM of one of the most successful teams in the league.

DING DING DING QFT

Seriously, if you don't think he's trying to work some sort of master plans to keep the players he knows are going to work out here long term and the star players who WANT to play here.. you guys are nuts. I believe he's trying to do what it takes to keep both Franzen and Hossa.

Damn the CAP!!! Damn the Cap to HELL! But if Kenny's figured a way around it.. good for him and our team.

I really don't want to see Franzen OR HOSSA in any other uni.

[PRStoetzer 1]

Just a slight correction on this ... Buying out contracts like this is actually not the way to go. It is very complicated, but you would be on the hook for quite a number of years.

When a player is bought-out, the team the player is currently playing for buys out the rest of his contract for 2/3rds of the value left on it. If he has 3 million left, the team pays him 2 million and the player is a free agent. Take Yashin's contract with the Isles. He had 4 years left and was bought out for 17.6 mill (2/3rds of the rest of his contract) When buying out a contract, the team takes a cap hit of double the years left divided by the contract. 2.2 per year for 8 years. (17.6 / (4x2) = 2.2)

The Wings would definitely not want to buy out a contract like Zetterberg's or what I expect Franzen's to look like. One thing to note on a deal like Zetterberg's. It does for all intents and purposes eliminate the possibility of a buy-out under current rules. Detroit would have to carry at least $5.4M in dead cap space in the last two years if they buy the contract out. In fact, if they buy it out with more than 2 years on the deal, the cap hit in the last two years would exceed the original $6M number. Lecavalier's deal is even worse in this regard.

But it's 2/3 the remaining VALUE of the contract spread out over double the number of years, not 2/3 of the remaining cap hit.

[eva unit zero 271]

If Franzen's deal is for about $4m...say goodbye to Filppula and either Stuart or Samuelsson+Hudler+possibly Leino unless Hossa is not returning, unless Hossa takes a VERY cheap deal.

[evilmrt 636]

According to the Free Press, Holland has confirmed the Franzen deal. Its an 11 year contract.

[Williams29fan 6]

detroitredwings.com says 11 years! EPIC!