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Penguins Free Agency Update

It has been a week of good news and bad news for the Pittsburgh Penguins as they have seen several roster gains, losses and signings as the free agency market swings into full motion.  Ray Shero is quick to emphasize that he managed to keep the core in place, yet he lost his #1 post-season priority as Marian Hossa opted to take a 1-year deal with the Detroit Red Wings.  While managing to keep their defensive core, centers, and starting goaltender in place, the Penguins have lost the majority of their active wingers to the free agent market.  The following is a summary to date of the roster gains and losses since the end of the season, and the reported contract lengths/values. 

Roster losses:

• (LW) Ryan Malone – to Tampa Bay Lightning
  • Traded before free agency for 2009 3rd round draft pick
  • Signed 7-year, $31M+ deal
• (LW) Gary Roberts – Tampa Bay Lightning
  • Traded with Malone
  • Signed 1-year, $2M deal
• (RW) Marian Hossa – to Detroit Red Wings
  • Signed 1-year, $7.5M deal
• (G) Ty Conklin – to Detroit Red Wings
  • Signed 1-year, $750K deal
• (Lw) Jarkko Ruutu – to Ottawa Senators
  • Signed 3-year, $3.9M deal
• (RW) Georges Laraque – to Montreal Canadiens
  • Signed 3-year, $4.5M deal
• (RW) Adam Hall – to Tampa Bay Lightning
  • Signed 3-year, $1.8M deal

Roster Gains:

• (RW) Eric Godard – from Calgary Flames
  • 4th line enforcer
  • Signed 3-year, $2.25M deal
• (LW) Ruslan Fedotenko – from New York Islanders
  • Signed 1-year – $2.5M deal
• (RW) Miroslav Satan – from New York Islanders
  • Signed 1-year, $3.5M deal

Existing Roster Signings:

• (R) Pascal Dupuis
  • Signed 3-year, $4.2M deal
• (D) Marc Eaton
  • Signed 2-year, $4M deal
• (D) Brooks Orpik
  • Signed 6-year, $22.5M deal
• (C) Evgeni Malkin
  • Signed 5-year, $43.5M deal (starts in 2009)
• (G) Marc-Andre Fleury
  • Signed 7-year, $35M deal

Remaining Penguin Unrestricted Free Agents:

• (C) Kris Beech
• (LW) Jeff Taffe

So, in summary, the Penguins have signed their starting goaltender Marc-Andre Fleury who was a restricted free agent, as well as 3 of their 12 unrestricted free agents in Pacal Dupuis, Brooks Orpik and Marc Eaton.  They have lost 7 of their 12 unrestricted free agents to include Marian Hossa, Ryan Malone, Gary Roberts, Ty Conklin, Jarkko Ruutu, Georges Laraque and Adam Hall.  Unrestricted free agents Kris Beech and Jeff Taffe are still unsigned. 

The Penguins will need to add more depth on wing to round out their roster before training camp.  Satan and Fedetenko were good signings for the Penguins, but the Penguins could use one more big signing on wing to backfill the hole left by Malone, Hossa and Roberts, unless of course Shero expects to pull from their Wilkes-Barre/Scranton affiliate.  Perhaps the most interesting news has been that the Penguins have been talking to Jaromir Jagr about a potential return to Pittsburgh.  This certainly would have been a major development if it had panned out, however, reporting this morning indicates that Jagr has signed a letter of intent to play in Russia and leave the NHL behind.

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Penguins Limp Towards Free Agency

With just a few days to go before the July 1st opening of the free agency market, the Penguins have so far failed to complete any of their post-season priorities.  It was no secret that the Penguins wanted to lock up a long-term deal with Marian Hossa, re-sign Brooks Orpik, and tender a trade prior to the draft to acquire a first round pick.  To help with the challenges, the Penguins filed for salary arbitration with Marc-Andre Fleury to buy some time on his contract talks to focus on getting the other deals done.  So far, the Penguins have nothing to show for their efforts aside from some public rejections from the players involved. 

Ray Shero and his team spent much of their pre-draft time and effort drawing up a long term deal for Marian Hossa.  The offer tendered by the Penguins was rumored to be in the 7-year and $50M range.  With Hossa’s post-playoff comments that he would be willing to accept less money to play for a great team, it was widely believed that this was a signal of his intent to stay in Pittsburgh.  Last week, rumor had it that Hossa would sign a deal before last Saturday’s draft.  However, on draft day Hossa rejected the offer and informed Shero that he was going to test the free agency market, noting that the Penguins were still at the top of the list.  It seems an obvious negotiating tactic on behalf of Marian Hossa and his agent to let the free market pressure ensure that they get the best offer on the table before making a decision.  Ray Shero noted however that the offer may no longer be on the table after July 1st.  It seems a low risk proposition for a player that is sure to command matching or better offers outside of Pittsburgh.

During the Hossa negotiations, the Penguins were also shopping potential pre-draft trade deals to trade away the rights of pending free agents in return for a first or second round draft pick.  The most notable was a rumored deal with Columbus to move Ryan Malone for a 2nd round pick.  At the last minute, however, Ryan Malone stated his intent to test free agency and that he would not be talking to any teams prior to July 1st.  This slammed the door shut on the Penguins hopes to get something in return for the blossoming power forward.  It seemed a fitting gesture from the budding power forward and local hero after the Penguins’ management opted to not make Malone’s re-signing a priority for the team.   As a result, the Penguins were not able to better their position for the draft. 

The Penguins then put the focus on defenseman Brooks Orpik, with the intention of signing him before next week’s free agency deadline.  The Penguins tendered an undisclosed multi-year offer rumored to be in the $3M per year range,  Yestderday, Brooks Orpik and his agent turned down that offer.  Orpik didn’t indicate that he intended to test out free agency, leaving open the possibility that a new offer and deal could be struck before Tuesday. 

In other disheartening news, wiley veteran Gary Roberts has indicated through his agent that he is parting ways with the Penguins.  “He very much enjoyed his time there,” his agent said. “But he understands that Ray has a number of items on his agenda that would take priority.”  Roberts reportedly wants to continue his NHL career at least one more season.

In the only bit of good news from the last 2 weeeks, the NHL’s salary cap for next season was announced yesterday and it has grown by $6.4M over last season to $56.7M.  League commissioner Gary Bettman had previously expected a $3 million increase.  The higher cap gives team’s more bargaining ceiling should the team’s ownership be willing to foot the bill.  The Trib reports that the Penguins ownership is believed to be willing to spend up to the cap, even though it would likely mean operating at a loss for the next 2 seasons until the Penguins move into their new arena.  It will be interesting to see if this affects the on-going negotiations with Brooks Orpik and whether it creates an opportunity for revisiting the Hossa offer.  It could also affect the post-July 1st negotiations expected between the Penguins and Evgeni Malkin. 

On Tuesday, the free agency market will commence and the Penguins could find themselves having to re-wicker their priorities and objectives if they can’t land Marian Hossa and/or Brooks Orpik.  I am sure this is not the scenario that Ray Shero wanted to be in at this point, but realistically it is probably the scenario that he expected to be in.  You can’t blame a player for trying to maximize his earning potential.  All we can do as fans of the game is hope for the best and hope that the majority of this special group of players remain intact for another run at the cup in the coming season. 

Let’s Go Pens!

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Pittsburgh Penguins Off-Season Roster Challenges

What a fabulous season for the Pittsburgh Penguins, despite the disappointment of falling two-games short of hoisting Lord Stanley’s Cup.  In a season marred by lengthy injuries to key players, the Penguins found ways to overcome and finish the season just 2-points behind the Montreal Canadiens in the Eastern Conference race.  Key players stepped up at key times to cover roster injuries to Sidney Crosby, Marc-Andre Fleury, Marc Eaton, Max Talbot, and Gary Roberts to name a few.  Ray Shero made key trades at the deadline to bolster the lineup with Marian Hossa, Pascal Dupuis and Hal Gill.  The resilient Penguins ultimately went on to win the Eastern Conference Title and force Game 6 in the Stanley Cup Finals against the formidable Detroit Red Wings after going down 2-0.  Through it all, a very young, talented team gained invaluable experience and maturity that will serve them well into the future, both individually and as a team.  It was truly a great year for Penguins’ hockey.  So as the off-season sets in, what roster challenges lie ahead?

Penguins’ General Manager Ray Shero has his work cut out for him as he tries to retain as much of his talent as possible within the league-imposed Salary Cap, which is projected to be $56M for next season.  Even if Shero can negotiate with the players and find a way to bring all the talent back within the Salary Cap, it is uncertain whether the he will be afforded the resources necessary to spend up to the full cap amount.  This season, the Penguins spent $40.6M, well under the $50.3M cap.  If they were to use the full salary cap, the Penguins would have to absorb a 38% payroll increase at a time that they are also financing a new arena.  For a team that has had to dealt with the spectre of bankruptcy, this could well be mission impossible.  On the other hand, the team sold out every game this season and played 11 sold-out games at home in the post-season, and is undoubtedly one of the best prospects in the NHL for the next few seasons. 

First and foremost, Ray Shero will likely look to lock up Marc-Andre Fleury.  Fleury will become a restricted free agent on July 1st, and the Penguins will want to tie him up before any other offers come in.  Then they will turn their efforts towards a long list of unrestricted free agents.  The Penguins have 12-players heading to unrestricted free agency on July 1st.  The Penguins management will have to prioritize their key needs and focus on them first, as I expect some of these players will be heading out of Pittsburgh over the summer.  Lastly, the Penguins will likely try and lock up Evgeni Malkin and Jordan Staal who are entering the final year of their entry level contracts.  Here is the breakdown of where things stand heading into free agency on July 1st:

Restricted Free Agents on July 1st:

• Marc-Andre Fleury:  Despite a lengthy in-season injury, Fleury came back and proved he is an elite goaltender, and was phenomenal in the post-season.  He should be the #1 priority for the Penguins who will look to get him on contract before his July 1st restricted free agency.  He made $1.6M this season, and is a must keep. 

Unrestricted Free Agents on July 1st:

• Marian Hossa:  Picked up in a blockbuster deal at the trade deadline to play on Crosby’s wing, it is possible that we just started to see the magic between the two as the post-season ended.  He improved his stock by showing he can deliver in the post-season.  The Penguins want to keep Marian Hossa, but will likely be outbid in free agency.  Whether he stays or goes will likely be up to Marian Hossa and his desire to stay with this exciting young team.  He made $7M this season.
• Gary Roberts:  After a tough season marred by serious injury, 42-year old Gary Roberts may opt to retire.  He has been the veteran leader that the Penguins have asked him to be.  He made $2.5M this season. 
• Mark Eaton:  Injury has kept Mark Eaton off the Penguins’ roster and will likely affect his open market value.  If he can stay healthy, he will be a solid defensive contributor alongside Sergei Gonchar.  He made $1.6M this season. 
• Ryan Malone:  Proved his worth as a power forward in this league and in so doing may have priced himself out of the Penguins’ market for next season.  The native local hero will likely be loath to leave this team and the city of Pittsburgh, but he may opt to do so depending upon what the open market has to offer.  He made $1.45M this season. 
• Georges Laraque:  A big presence on the 4th line who showed that he can contribute along the boards, as well as in the boxing ring.  He made $1.3M this season.  
• Jarkko Ruutu:  A gritty contender and crowd favorite for Pittsburgh who made some key contributions throughout the season.  He will likely draw interest from other teams in free agency.  He made $1.15M this season. 
• Brooks Orpik:  Had a tremendous season on defense for the Penguins, vastly increasing his stock on the open market.  He will be difficult to retain.  He made $1.075M this season. 
• Pascal Dupuis:  Came to Pittsburgh in the deal with Marian Hossa, and was a nice surprise in terms of speed and energy.  He made $880K this season.
• Kris Beech:  Largely anonymous in just 5-games this season, troubled with injury.  He made $585K this season.
• Adam Hall:  Proved a solid contributor throughout the season and played very well in the post-season.  He made $525K this season.
• Jeff Taffe:  Solid role player who added the depth that the Penguins needed during the injury-riddled season.  He made $500K this season.
• Ty Conklin:  Who wouldn’t like to keep Ty Conklin in the lineup after his phenomenal stand-in job this season while Fleury was injured.  With his stock back up, he may be picked up in free agency for more than the Penguins can afford.  He made $500K this season.

On-Contract Through Next Season (~$29.97M):

• Sidney Crosby:  Signed through 2013 at an arguably bargain price of $8.7 million per season.
• Sergei Gonchar:  Signed through 2010 at $5M per season.
• Ryan Whitney:  Signed through 2013 at $4M per season.
• Petr Sykora:  Signed through 2009 at $2.5M. 
• Darryl Sydor:  Signed through 2009 at $2.5M.
• Hal Gill:  Signed through 2009 at $2.1M.
• Evgeni Malkin:  Aside from his late playoff slump, Evgeni Malkin significantly increased his stock this season by blooming while Sidney Crosby was sidelined.  Malkin has one more year on his entry-level contract at $985K, and could eclipse Crosby’s $8.7M annual salary in an extension deal, that could get inked this summer. 
• Jordan Staal:  At just 19 and with another year on his entry level contract at $850K, the Penguins will want to lock him into a longer term deal ASAP.  For Staal, it may make more sense to wait until next summer to see if he can increase his stock over the next season.
• Kris Letang:  Signed through 2010 at $835K per season.
• Rob Scuderi:  Signed through 2009 at $725K. 
• Maxime Talbot:  Signed through next season at $700K.
• Tyler Kennedy:  Signed through next season at $550K.
• Dany Sabourin:  Signed through 2009 at $525K.

In summary, the Penguins have ~$30M locked up in existing signed contracts for next season, leaving at most ~$26M in salary cap room.  From that, the Penguins could conceiveably spend ~$4.5M on Marc-Andre Fleury and ~$9M on Marian Hossa, leaving just ~$12.5M to spread across the remainder of the lineup.  This would be just enough to cover the remaining free agents at their current year’s salary.  This would give no ability to re-sign Ryan Malone at open market value (likely ~$3M+) or Brooks Orpik at open market value (likely ~$3M+).  If Gary Roberts retires, that would free up some room, but you would have to determine how to backfill him on the roster.  My guess is that the Penguins will retain one, but not both, of Malone and Orpik.  As July 1st draws near, contract deals will start to emerge and we will get a better picture of what the team may give up over the summer, and what some players may be willing to do to stay on a team that will continue to be a cup contender in the coming years. 

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