When NHL commissioner Gary Bettman met with the media following the first day of the board of governor meetings at the posh Breakers resort in Palm Beach, Florida, he issued a warning: There’s not much news to report.
As Bettman celebrated 30 years in office at these meetings, the league is in a healthy spot. There wasn’t anything seismic that happened. But there was some news and discussion concerning the NHL salary cap, playoff expansion … and celebrity ownership possibilities.
The collection of team presidents, general managers, owners and executives still had plenty else to chat about. After two days on site, here’s some of the chatter that we overheard:
Latest on the salary cap for 2023-24 and beyond
There was optimistic anticipation — especially among NHL GMs, agents and players — that the NHL would bump the salary cap next season significantly, signaling a full recovery from the pandemic.
After all, in October, Bettman had suggested the cap could rise by $4 million in 2023-24 as there was a “good probability” that players’ escrow debt would be paid off this season.
Not quite so fast.
Bettman said that, as of now, it’s looking like players could still owe roughly $70 million at the end of the season. Because of that, the salary cap is projected to rise by only $1 million to $83.5 million next season. That would mark the second straight year of a $1 million increase.
Those projections aren’t final, but the league would have to exceed business expectations by $140 to $150 million over the season’s final six months to see a larger increase. Not helping matters is the fact the Canadian dollar currently is valued at 0.74 U.S. dollars. Bettman said the value of the Canadian dollar had a negative impact of between $10 million to $15 million last season.
But there’s still slight hope.
According to deputy commissioner Bill Daly, the league’s revenue could greatly be impacted with the right franchises in the postseason and making deep runs. “Who’s in the playoff, and what are they generating?” Daly said.
So if you’re a neutral fan, or a fan of a cap-strapped teams, you should be rooting for Original Six stalwarts like the Boston Bruins, Toronto Maple Leafs or New York Rangers to go on a long run.
The news didn’t sit great with some GMs, who were hoping for clarity and flexibility.
“I just wish they would give us certainty,” one NHL general manager told ESPN on Monday. “I’m totally hamstrung not knowing how to plan for the future. Would be great if they could give us even a sense of what it might look like the next three years.”
There is a chance the NHL and the NHLPA could collectively bargain to bridge the gap between the two salary-cap scenarios.
The board of governors did not discuss whether it would be amenable to negotiating a “bridge” with the NHLPA that would allow the cap to rise higher next season, given how close the players are to paying off the escrow debt.
“That’s not what the agreement provides for, under the current circumstances,” Bettman said. “If it needs to be changed, that’s something that would have to be discussed with the players’ association.”
An NHLPA source told ESPN that the scenario is on the players’ radar, although its membership hasn’t been polled about pushing for it.
Digital dasher boards are here to stay
Anyone who has spent time on social media during NHL games this season has come across some semblance of criticism about the league’s digital board advertisements.
The digitally enhanced dasher (DED) board technology “erases and replaces” the advertising physically found on arena rink boards with virtual ads during broadcasts. When the game is seen through the main center ice camera, fans see the DED system’s ads. When there are close-ups and reverse angles on broadcasts, the in-arena boards are visible.
There has been fan outcry about the digital ads being distracting. Some have pointed out glitches in the technology. Dan Bagley, in a lengthy investigation that published on UniWatch, used clips from games to show the puck disappearing during play, how animated ads detract from the gameplay and other critiques.
The board of governors was given a report on the digital ads, and Bettman downplayed the negative reaction to them from some fans.
“The polling we do with our fans gives us the feedback that it’s a non-issue,” Bettman said. “In fact, many think it looks better than having the numerous logos and ads on the dasher boards. It’s working extraordinarily well, particularly for the complexity that’s involved in doing it.”
Bettman said those who find the digital ads distracting are focusing too much on the ads and not enough on the game.
“If what you’re doing is just watching the dashboards — which I guess if you’re reporting on it, you might do — then it may be a distraction. If you’re watching the game, it’s not a distraction.”
Bettman said the revenue from the digital dasher boards is “exceeding expectations” for the NHL.
Trade block(ed)
There were a handful of general managers at the board of governors meetings (or “with governor access” as some put it). In conversions with a handful of them, one large theme emerged.
Summed up by one general manager: “It’s impossible to get a trade done right now. Nobody can get anything done.”
There are a few reasons in-season transactions have been hard to come by. The rash of injuries have put a few teams’ plans on hold. The parity in the league is more pronounced than ever before, meaning several teams are nearing Christmas and still don’t know what direction they’ll go in (for example, the St. Louis Blues). Others are wondering if this is a year to go chasing when so many teams have a chance.
But after conversations with several general managers, the biggest cited reason for the hold-up: the number of teams pressed against the salary cap, which has remained mostly stagnant following the pandemic.
That means teams are waiting as long as possible to get their business done, allowing their cap space to accrue for maximum flexibility. Once we get closer to the March 3 trade deadline, general managers predict things will heat up.
“Might not be busy for you now, but I think you’ll be very busy on March 3 this year,” one GM said. “There’s going to be a lot of players, a lot of teams in the mix.”
One trend to watch out for is the reemergence of “third-party brokers,” as teams with the luxury of cap space will step up to retain salary on a deal to pick up extra assets. As a reminder, an NHL contract is allowed to have a maximum of two teams retaining salary on it, and that retention is maxed out at 50% per team. Per the CBA, teams can have only three contracts with salary retention at a time.
Teams expected to engage as third-party brokers this season include the Chicago Blackhawks, Montreal Canadiens, Arizona Coyotes, Anaheim Ducks and San Jose Sharks — all teams building for the future.
Revisiting high-sticking penalties?
NHL vice president of hockey operations Colin Campbell wonders if “maybe there’s a conversation to be had” about high-sticking penalties in the NHL because the rules haven’t changed with the times.
“A high-sticking will always be called for two minutes if it just touches a face or a head. Because when we brought that rule in, there were maybe 15% of the players wore visors,” he told ESPN on Monday. “Now it’s automatic. Should we look at them again?”
The NHL rulebook defines a “high stick” as one that’s carried above the height of an opponent’s shoulders. Per the rulebook: “Players must be in control and responsible for their stick. However, a player is permitted accidental contact on an opponent if the act is committed as a normal wind-up or follow through of a shooting motion, or accidental contact on the opposing center who is bent over during the course of a face-off.”
Campbell noted a recent game between the Calgary Flames and the Toronto Maple Leafs in which Jonathan Huberdeau was called for a high-sticking minor at the start of overtime, as his stick accidentally connected with the face of defenseman Rasmus Sandin. The Leafs won the game on the ensuing power play.
“I know it was a penalty, but was there a penalty? Is that fair?” Campbell asked rhetorically.
In recent years, the NHL has empowered its on-ice officials to review their own high-sticking calls when they result in a double-minor penalty. In 2019, referees were given the ability to confirm the call via video review, specifically looking for whether the stick causing an apparent injury was actually the stick of the player being penalized. If the evidence allows it, the referee can rescind the call.
While Campbell would consider a conversation about the standards for minor high-sticking penalties, he said it could create more issues than it might resolve.
“Gary [Bettman] being the individual that’s about directing us the right way would say to be careful what you wish for when you start peeling that back,” he said.
One of the rumors permeating around the resort was that the league would force any ownership group to include actor Ryan Reynolds as a minority holder — because the NHL understands the sizzle an A-list celebrity could bring.
Bettman didn’t go that far, but it’s clear the league is interested in having Reynolds aboard. In fact, the commissioner confirmed he met with the actor recently.
“[Reynolds] very much impressed us. If we can figure out a way to have him included, I think that would be great for the Senators and great for the league,” Bettman said.
“He’s very smart, he has a number of businesses besides the acting business, and he understands sports and he understands promotion,” the commissioner said. “I think he told us his followers on all of his platforms combined was well over 100 million. So he’s somebody who is very popular and very engaged, and he’s doing a great job with Wrexham.”
One NHL team president told ESPN that Reynolds being involved with the Senators would be “sensational” for the NHL.
“Have you seen his social media following?” the NHL team president told ESPN. “Heck, if Ryan Reynolds posts about the Senators on Instagram seven times, that could be worth it alone.”
There’s no immediate news to report on the sale. Bettman said more than a dozen interested parties have signed nondisclosure agreements to look at the Senators’ data bank. A formal process is expected to begin in January.
But owners at the meeting were optimistic about the sale price. The last NHL team to undergo a full ownership change was the Pittsburgh Penguins, who were sold to Fenway Sports Group last December. That sale price was “roughly $900 million,” according to sources.
The Senators were sold to Eugene Melnyk in 2003 for $92 million. This sale will eclipse that — and then some.
“Here’s a credit to Gary Bettman’s impact over 30 years in office,” one governor said. “A franchise that once nobody wanted, that nearly went bankrupt, is now going to go for $700 million-plus.”
Expanding the playoff field
A few of board of governors members have expressed an interest in expanding the NHL postseason from its current 16-team field. The NBA, the NFL and Major League Baseball have all added teams to their respective playoffs — why not the NHL, now that the Seattle Kraken made it a 32-team league?
Bettman said he has not gotten feedback from his owners that they want to expand the NHL playoff field.
“People think the system we have in place right now is working extraordinarily well and frankly, there’s nothing better in sports playoffs than our first round,” Bettman said. “I’m not sensing much of an appetite for change.”
Bettman said adding teams to the Stanley Cup Playoffs is “looking to fix a problem that doesn’t exist.”
While other leagues have generated revenue from expanded postseasons, Bettman said the potential downside was more concerning for the NHL.
“I’m not sure it enhances revenues. Diluting the regular season and diluting the playoffs doesn’t make much sense to me,” he said. “I think having a system where half the teams make the playoffs and half don’t, I think that’s perfect.”
Going international
The governors were briefed on the NHL’s international efforts, which this season included Global Series games in the Czech Republic and Finland, as well as exhibitions in Germany and Switzerland.
“Do you know what stood out to me?” one governor remarked after taking in the presentation on Monday. “They sold out the arenas. Packed buildings in the Czech Republic. And the average price of tickets was $173. That’s not cheap, especially in that country. It just shows that the interest in our league over there is extremely real.”
The governor wondered how the NHL could further capitalize on that, beyond just staging more games abroad next season — which the league intends to do, in new European cities.
Reaching farther into the future, could the NHL establish a permanent presence there, including owning and operating a second league, he wondered? And as the NFL further formalizes its relationship with London, could the NHL put a team there, too?
While the fan interest and potential revenue could show tangible results, it would likely be too logistically challenging for a league with 82 games to have one to two franchises based in Europe. For it to work, the governor said, the teams would have to at least have a base in the United States.
The situation in Arizona
A topic of conversation at the resort was Bettman’s November appearance at the Tempe City Council meeting to affirm his support for the Coyotes’ plan for a new arena. Bettman went as far as promising an All-Star Weekend or a draft for the city if the project reaches completion.
That wasn’t necessarily a surprise, as it’s common practice for the NHL to award teams with new arenas with a league event. There are several franchises still waiting in line, including the New York Islanders, Edmonton Oilers, Detroit Red Wings and Seattle Kraken.
Bettman’s support for the Coyotes as a franchise has been unwavering. He moved the team to Arizona early in his tenure as commissioner and has been steadfast on seeing that vision through. The growing youth hockey participation supports the sport’s interest; in general, it’s one of the fastest-growing regions of the United States.
Bettman has been preaching these talking points to the board for more than a decade, as the team has gone through turmoil and ownership changes. But for the first time in a while, the Coyotes seemingly have a clear path of stability ahead.
“Consider me in the group of people that were skeptical that it would ever work there,” one team owner said. “And you know what? I think they’re going to pull it off.”
In conversations with team CEO Xavier Gutierrez, the Coyotes organization is equally optimistic. Gutierrez said he believes his peers finally understand that Tempe is the market they should be targeting. Keep an eye on the Coyotes finding ways to stay engaged with Arizona State University, including keeping a student section for their new permanent home.
The next wave of news — and clarity — will come May 16, when the public referendum in Tempe will take place.
Ted Leonsis on Alex Ovechkin‘s goal-scoring chase
No one had yet asked about Alex Ovechkin’s record chase when Washington Capitals owner Ted Leonsis offered up a trivia question:
Who leads the NHL in all-time empty-net goals?
He answered it himself: “Wayne Gretzky.”
The Great One scored 56 of his 894 goals into an opponent’s abandoned net. Ovechkin has scored 53 of his 797 career goals with the opposing goalie pulled, including an NHL-best five empty netters this season. Leonsis had that factoid at the ready because of the criticism that many of Ovechkin’s goals have been into an empty net.
“We’re just happy to be out there in a situation where they have pulled their goalie,” he said. “And as Alex said, ‘If I’m going to pass him, I have to pass him in every metric.'”
As Leonsis watches Ovechkin track down Gretzky’s record, there’s another NHL mark of Ovechkin’s that holds a special place in the owner’s heart. On Nov. 5, Ovechkin became the player with the most goals with one franchise, passing Gordie Howe’s 786 goals in 1,687 games over 25 seasons with the Red Wings.
“His loyalty and his durability have just been spectacular,” Leonsis said. “That’s probably the record that will never be broken, to have that many goals just with one team.”
Ovechkin has been great for the Capitals’ business during this career. The goals record chase would seem like another opportunity for the team to cash in on the hype. But Leonsis said that the team isn’t looking to build additional sponsorships or have specific marketing programs around Ovechkin’s pursuit of Gretzky.
“Those are empty calories. We’re already sold out,” he said. “What he’s done is make us relevant.”
For example, executives from ESPN, Turner and Sportsnet presented at the board of governors meetings. According to Leonsis, each of their presentations started with an image or highlight of Ovechkin.
“Trust me, 10 years ago, you wouldn’t come to these meetings and he’s first there,” he said.
That’s not just the Ovechkin Effect in Washington. Leonsis said his captain, and his arch rival, have helped make the NHL more relevant, too.
“Look at how much the league has grown since Alex and Sidney Crosby came into the NHL,” Leonsis said of the Pittsburgh Penguins star. “They made those comparisons a long time ago to Magic Johnson and Larry Bird. But it’s very analogous to that. The whole league was lifted up.”