Performance Bonuses 101

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We needed a new post anyway. And it’s been pretty quiet around the league. And I haven’t annoyed you with the CBA stuff for some time.. And….whatever.

Anyway, when TomK posted this tweet below, I said that JD/Gorton just basically gave away that they are selecting Lafrenière.

https://twitter.com/vzmercogliano/status/1312054903074848770?s=20

“Don’t expect big $$ FA signing because they want to stay well under the cap for bonus purposes” is the clue.

I am not going to go into specifics of how performance bonuses are earned, and how they are paid ( by the league or by the team etc ). It’s complicated, but interesting, if you’re curious. For anyone interested, here is the best description of how it works that I use often. As you can see, the maximum possible bonuses earned can not exceed $2.85M, and it all depends on how a contract is negotiated. So it could be less, or not at all. Also, if you look carefully, more often than not these bonuses are unattainable regardless. Unless, of course, you are Gretzky.

But, whether they’re attainable or not makes no difference when you calculate available cap space. That’s because teams have to take into consideration potential performance bonuses, and as per CBA, are only allowed 7.5% bonus cushion each year. In other words, this season, any team is allowed to spend $87,612,500 including potential performance bonuses.

This is what the Rangers have now ( as per CapFriendly ) in terms of potential performance bonuses, as it is negotiated with each contract:

Shesterkin- $2.85M (only one with maximum possible!)

Kakko- $2.65M

Fox-$850K

Chytil-$350K

Gauthier-$300K

Lindgren-$212.5K

Total- $7,212,500

Vitaly Kravtsov, by the way, has a maximum possible earned bonus in his contract at $850K, so that would have to be added too. But he isn’t on their roster at this point.

So with that number, the Rangers would be able to spend in actual contracts $80,400,000 or just a million less than $81,500,00 cap limit.

Now, if they draft somebody at #2 or #3, and by all reports neither of them would be ready this season, it’s not a big deal. But if they draft Lafrenière, who will go right in the lineup as it seems, it’s a different story. There is no doubt that he will get maximum possible ELC, including $2,850,000 signing bonus.

That itself brings their actual spending ability down to $77,550,000. In actual available money, the number of just over $23M ( after buying out Hank and trading Staal ) all of a sudden becomes of just over $19M.

That’s why I think when Gorton mentioned he wants to stay well under the cap to allow room for potential performance bonuses, he pretty much gave away that they’re selecting Lafrenière.

Now, I could totally be wrong and they will select someone else. But this is my story and I’m sticking to it! 🙂

UPDATE (10/5): Click here to read Carp’s new article.

328 responses to “Performance Bonuses 101”

  1. Bdl Avatar
    Bdl

    James,
    You need to wait and see as to who the acquire before you get worked up over Strome. I think most rational thinking Rangers fans would agree with you about Strome, but only short term. They need to upgrade the center spot, or more specifically, the match up center spot. Zibanejad is not that guy. They are better off with him having the O freedom, instead of matching with Crosby all game. Strome is certainly not that guy, and Chytil is not close to being that guy. A big center who can do that is required if they want to take the next step.

  2. Bdl Avatar
    Bdl

    Reading that over, I’m wondering if it should have been whom, instead of who. Coos?

  3. jpp Avatar
    jpp

    OMG

    Brooks said we’re getting Eichel

    😉

  4. ilb2001 Avatar
    ilb2001

    A little salary cap twist on that Eichel trade. First, Buffalo is over $12M below the salary floor. And that is with Eichel counting against it. They may want to cut costs, but they still have to get to the floor somehow, unless they are folding the franchise. Two, Eichel is due for $7.5M signing bonus and only $2.5M salary. I am getting conflicting reports on the timing of signing bonuses. Some say they’ve already been paid, some say they are yet to be paid as usual, and that is at the beginning of FA. If he already got his bonus, you can forget about them trading him this year, no matter what he wants.

  5. 4everanger Avatar

    Now annoying: I. Told. You. So. And still do not believe. Too good to be true.

  6. 4everanger Avatar

    Not giving Strome qualifying offer was clear indication of intend to get much bigger fish. Will see how it works.

  7. James G Avatar
    James G

    BDL, I’m not worked up. Honestly. I was just pointing out that Strome has been a good Ranger and is well liked. I would hope they’d only move on from him in order to get themselves a legitimate upgrade.

  8. St Pete Eli Avatar
    St Pete Eli

    I like Stromeo he has been really good, but the Rangers do need a better match up center to free up the DJ. It’s pretty simple IMO and that guy should be centering the 3rd? Where does that put Laffy? On a checking line? Gorton has his work cut out for him. We cannot and I repeat cannot be a team with too much skill and not enough grit it will not translate to playoff success?

  9. SN Avatar
    SN

    Eichel would be a big fish to land; $23M under cap; Eichel @ $10M; stromeo would have been close to $5M.
    Still need to sign Pepe, Bev and another Dman unless they plan on playing one of the pups.
    .
    what would it take? Mika?? if so, still need another pivot or two

  10. SN Avatar
    SN

    Need a two way center playing with Laffy; but not sure how much D responsibility you want to throw in his lap in Year 1.

  11. The Wick Avatar
    The Wick

    I like Bennett as a centre for lafreniere

  12. The Wick Avatar
    The Wick

    Who is eichel?

  13. The Wick Avatar
    The Wick

    Apparently the package for eichel will include Beverly, Miller, chytil, and buch +

  14. The Wick Avatar
    The Wick

    Oops….

    Forgot the “E5”

  15. James G Avatar
    James G

    LOL yeah. That’s how you manage the cap for Eichel. You won’t have to pay Zibanejad because he’ll replace him. Won’t have to pay LAF, Kakko or Fox because they’ll be Sabres…Maybe they can throw Jimmy Vesey back to us so we have someone other than Gettinger left to play beside St. Eichel..

  16. James G Avatar
    James G

    Wicky I’m buried in a sea of work days and poopy diaper nights…has there actually been talk around Calgary that they’ll move Bennett?

  17. James G Avatar
    James G

    Craig Button was trying to project an estimation of just how many points LAF could put up in his rookie year in New York. Sadly/Ironically, he had the same line combos I assumed we’d see. IE-Kakko replaces Fast and Laf plays with Chytil and Gauthier.

  18. jpp Avatar
    jpp

    Mika has a No something clause.
    I don’t know what type or how strong the clause is.

    But he had a clause kick in last summer

  19. CCCP Avatar
    CCCP

    I wasn’t aware that posting about the all time low NBA finals ratings (down by 68%!!) was a controversial topic here.

  20. SN Avatar
    SN

    James – Would you want Eichel years 24-29 @$10M per or Mika years 29 – 36 @ $9-10M per?

  21. SN Avatar
    SN

    you mean this one?
    The full six-game Lightning-Stars series averaged 2.15 million viewers, down 61% from last year’s seven-game final (5.47M) and the least-watched Cup Final since 2007.
    .

  22. James G Avatar
    James G

    I have no issue with that part. What I don’t like is the alleged asking price for Eichel. I’m sure a bunch of people here think he can be had for Buch, ADA and Kravtsov…

  23. Bdl Avatar
    Bdl

    Sounds like Gorton was doing his homework on Eichel. If Eichel is available, what’s the price? Ok, moving on.

  24. James G Avatar
    James G

    “Broadway Jack”

  25. CCCP Avatar
    CCCP

    SNN

    Where you got those numbers?

  26. James G Avatar
    James G

    Hey BDL- Are you enjoying the new era of the NY Giants? No wins involved. But there’s a whole new sense of pride in their losing. It’s a good era.

  27. jpp Avatar
    jpp

    Edges response to someone asking if he thinks talks with buffalo are dead

    ‘I do not believe for a second that the Buffalo talks are dead. I don’t know if there’s been anything in the last 48 hours, but it isn’t a dead subject for either team.

    Lafreniere was not on the table. Kakko was not on the table.

    Miller, ADA, Buch, Chytil and Kravtsov were all on the table.’

  28. tomk19 Avatar
    tomk19

    Pens buying out Jack Johnson

  29. jpp Avatar
    jpp

    And here’s the skinny skinny.

    Nobody and I know nobody is offering up multiple pieces as good as the pieces we can put on the table.

    And personally, I think getting multiple pieces that will upgrade multiple positions by like 2 grades will be benefit Buffalo much more so than having eichel alone, or doing a deal where they get one bonafide piece and 3 maybes.

    Like let’s say LA is willing to trade the #2.
    Honestly all it does is put buffalo in the same boat with the next guy who’s probably byfield and it’s gonna take him longer to get to the point eichel has gotten to and by that time he may already be eyeing a way out.

    No, buffalo really needs like 4 good to really good players who are young who they have term on for 5-6 years.

    They need to build a team, they don’t need a star

  30. CCCP Avatar
    CCCP

    Because NHL’s “gargantuan” Stanley cup finals matchup between Tampa vs Dallas is the same as the NBA’s finals between Lakers vs Heat lol… those numbers cannot be fairly compared. NBA is mountains above NHL’s popularity…

  31. CCCP Avatar
    CCCP

    But you keep doing you, SNN…

  32. jpp Avatar
    jpp

    Buffalos best days and eras were when they had really good depth and guys who embraced building a team in buffalo.

    That’s the winning MO in a place like buffalo. You have to draft well, build a young team, grow them together, play a smart system like torts and trotz, try to have more depth than most teams and win the old fashion way.

    That goes over in buffalo, more so then a star driven middling team

  33. jpp Avatar
    jpp

    Be wise and look at eichel the right way.

    He’s The capital that will enable the Sabres to set up a foundation.

    The idea of winning with eichel is a pipe dream. They should be better than they are, They aren’t, they aren’t gonna be good enough before eichels trade clause kicks in.

    It’s called cutting off your nose to spite your face if they don’t face the reality

  34. jpp Avatar
    jpp

    And I know some people think trading eichel would be the over-reaction.

    But me, I think keeping him sinply due to the fact that you don’t want the mark of having to accept you landed a top player and couldn’t build a winner with him and had to ship him out to restore a foundation to your organization.

    That’s a fatal over-reaction.

    Cuz his value keeps going down from here

  35. jpp Avatar
    jpp

    Here’s another angle.

    Let’s say that bonus hasn’t been paid yet but will be in 4 days time and the Sabres are secretly resigned to trading him.

    Would mean pegula wants a deal done before he has to pay that bonus

  36. The Wick Avatar
    The Wick

    So basically this edge guy is stealing posts from here…got it

  37. ilb2001 Avatar
    ilb2001

    Thanks, CCCP. Was just going to post it. The new guy from LoHud mentioned it this morning. I wonder what made them re-think it and change the CBA though.

  38. The Wick Avatar
    The Wick

    James
    I’m pretty sure that Bennett has been rumoured to be available for a season or two, but you never know. I think he can be had.

  39. James G Avatar
    James G

    Eklund says Kakko on the table and E3 is on the can

    E1

  40. ilb2001 Avatar
    ilb2001

    I think I just found the answer. Traditionally, the QO deadline was set for Monday after the entry draft. This one was on the draft day. QO still can not be accepted until the UFA period opens on 10/9 at noon.

  41. ilb2001 Avatar
    ilb2001

    The only thing on Eklund’s table is what E3 produces on the can.

  42. CCCP Avatar
    CCCP

    Has Eklund ever been right?

  43. James G Avatar
    James G

    Did Carp retire?

  44. Bdl Avatar
    Bdl

    James,
    Carp has not retired. He’s on the every other week schedule for writing articles. You got one today, sooo, October 19th is his next one.

  45. The Wick Avatar
    The Wick

    Ilb
    Thank you for thanking cccp

  46. The Wick Avatar
    The Wick

    Cccp
    Eklund as posts on HF boards as some guy named edge.

  47. The Wick Avatar
    The Wick

    As=also

  48. Old Ranger Fan Avatar
    Old Ranger Fan

    If the Sabres haven’t been able to make the playoffs with Eichel maybe he is part of the problem. If the Rangers wind up having to let Mika walk how much better off are they after the move? Plus they have just dumped about half their future to get him. Seems a little like the Nash trade that emptied all the depth out of the system and necesitated other moves. Sather might do it but JG won’t. Sather was always chasing the shiny object. Gorton has a plan to follow.

  49. cooscoos Avatar

    You can say Craig Button here, but not Dick Button.

  50. CCCP Avatar
    CCCP

    Thank you for thanking them for thanking me.

  51. cooscoos Avatar

    You can say Craig Button here, but not Shvantz Button.

  52. James G Avatar
    James G

    Coos that’s nothing. Earlier SN said Big Johnson

  53. James G Avatar
    James G

    Actually he said No to big Johnson.

  54. James G Avatar
    James G

    Just want to thank everyone for thanking each other. You guys are the best.

  55. cooscoos Avatar

    Actually, it appears that you CAN say Shvantz Button, but not Di.k Button. How about that great old Shy-town linebacker, Shvantz Butt Kiss?

  56. cooscoos Avatar

    And a shout-out to ilb who freed me from moderation…. 🙂

  57. cooscoos Avatar

    JD used to call the litter box ‘Chateau BowWow.’ Always thought it should have been ‘Chateau Meow.’

  58. CCCP Avatar
    CCCP

    That’s cuz “kids” read this blog 🙂

  59. cooscoos Avatar

    I’d like to acknowledge and thank those whom are seldom mentioned, but have decided not to do so.

  60. St Pete Eli Avatar
    St Pete Eli

    James
    Thank you for that, you’re welcome Minx!

  61. cooscoos Avatar

    New Kids on the (chopping) Block.

  62. cooscoos Avatar

    Major Kudos to the three Nobel MDs who, in effect, discovered methodology leading to effective testing and eventual cure for Hep C, a major killer world-wide. Wow!

  63. The Wick Avatar
    The Wick

    Coos has been “woke” from moderation

    😉

  64. cooscoos Avatar

    ilb is on the ball, as it were.

  65. cooscoos Avatar

    Was a time when you innocently went into moderation and stayed there for eternity, like a frisbee on the roof.

  66. James G Avatar
    James G

    I used to love Kudos…the cookies and cream variety were outstanding.

  67. James G Avatar
    James G

    They did away with the kudos though. Just like Frusen Glädjé. Don’t understand why anyone would hate on ice cream in a bullet shaped container that packed a good 850 calories a serving.
    Must have been those people who declared a war on gluten some years ago.

  68. James G Avatar
    James G

    How many boneheads are gluten free? I respect you guys. I couldn’t do what you do.
    If I have my choice between being inflamed inside or never eating spaghetti and meatballs again? I take the inflammation.

  69. jpp Avatar
    jpp

    If I have one wish for hank in terms of a new team

    Pick a team that’s really sound structurally and defensively

    You want a real chance to show yourself you still got it. Go to a team that’s not run and gun.

  70. jpp Avatar
    jpp

    At one point they did this spin off kudos bowl. It was like in a to go cereal kind of packaging.

    I had such OCD with that, I used to eat it by pulling each nut off one by one. I still remember it to this day

  71. jpp Avatar
    jpp

    And by the way.

    K’Andre is the guy I’d hate to lose. Really hate to love Vitali as well. But I want K’Andre to be a ranger for a long time.

    I’d rather give up more value than K’Andre has than give him up

  72. jpp Avatar
    jpp

    Kaapo’s im emotionally invested in.

    So he might as well be McDavid to me.

    And the only offer I’d consider for Lafreneire would have to include Brady Tkachuk ++++.

    So kaapo and the 1st overall is a waste of time for buffalo to spend any more time asking for

  73. SN Avatar
    SN

    After 3 second google search; the ratings were found on wikipedia
    https://en.wikipedia.org/wiki/Stanley_Cup_Finals_television_ratings
    .
    %s are relative; suffice to say that sports outside of their usual viewing periods are faring horribly. My take is programming saturation and nobody wants to go up against football; college or pro.
    .
    Another slow news day… where’s Rudy?

  74. cooscoos Avatar

    Rudy graduated from Notre Dame. Davey’s still in the Navy.

  75. James G Avatar
    James G

    That was the 300th post. Does Coos get his performance bonus?

  76. Karl Hungus Avatar

    Would love to have Grabner back

  77. jpp Avatar
    jpp

    Having seen this play out before in sports countless times

    You know what softens the blow the most for a franchise and fan base who loses a franchise player. When the product they put out the next season actually produces more wins and more enjoyment for the fans.

    You lose eichel, but if you bring a combo of another 5-6 guys this offseason who Contribute and fit and your existing players see spikes in their game bc it’s just a better all around team.

    That’s what the sabres should be gunning. Most pro-longing the agony of this playing out.

    What spend another season or two losing with this hanging over the franchises heads and fans getting even more fed up. Or re-boot right now.

    Combo of the rangers being where they are at in their rebuild to be able to even send Buffalo the type of 5-8 piece package they are probably gonna put together and the number of free agents who are getting squeezed and are gonna be looking harbors in storms.

    It’s an opportunity that’s gonna be gone if they don’t it know. The pieces the rangers are offering aren’t all gonna be there to choose from.

    Get it done. Honestly believe it’s the best thing for Buffalo. Eichel s a stud but suddenly we got a bunch of big ticket items, that becomes our reality after this kind of trade. So it’s not like the rangers aren’t gonna be giving a lot of blood to make this happen.

  78. St Pete Eli Avatar
    St Pete Eli

    Somewhere beyond the sea……….

  79. tomk19 Avatar
    tomk19

    Pierre LeBrun
    @PierreVLeBrun
    ·
    7m
    Hearing that a Devan Dubnyk trade to San Jose, as expected, has been completed and should be announced within the next hour.

  80. SN Avatar
    SN

    Sabres traded top 6 center who was MVP of Stanley Cup champs soon after. They have no idea what they are doing

  81. cooscoos Avatar

    Seems to have been something of a paucity of PK goals since speedy Grabner departed, Karl.

  82. Bdl Avatar
    Bdl

    Grabner,
    Been there done that. Look forward, not backwards.

  83. Alex Avatar
    Alex

    no to Grabner – not with that staal like eye injury

  84. Bdl Avatar
    Bdl

    Sean Monahan, 3×6.75. Any takers?

  85. ilb2001 Avatar
    ilb2001

    What’s going to Calgary, BDL?

  86. Bdl Avatar
    Bdl

    DeAngelo plus.

  87. ilb2001 Avatar
    ilb2001

    I’d probably take him if the price is right. Chytil will either have to be a part of that deal or move to the wing. And, most importantly, they’d desperately need a solid 3rd line matching center. With some snarl. Charlie Coyle like guy.

  88. Bdl Avatar
    Bdl

    Brooks saying Josh Anderson a target.

  89. ilb2001 Avatar
    ilb2001

    I hope JD had a good look at Anderson’s medical records then.
    Josh Anderson is also in a peculiar spot at the moment. His QO offer is $2.1M and he doesn’t have much to show from last season to get a raise from arbitrator.

  90. CCCP Avatar
    CCCP

    Great art if this is indeed a drawing.

    https://i.ibb.co/2qdhtG1/120703763-10224200806550563-7489941582592178232-o.jpg

    https://ibb.co/2qdhtG1 Click this link for full quality

  91. ilb2001 Avatar
    ilb2001

    Not a single player on Columbus’ roster with AAV of $6M or over. None. But they were ready to pay Panarin at least what he got in NY from what we heard.

  92. jpp Avatar
    jpp

    Bdl

    Monahan is 6.35

  93. Eddie J Avatar
    Eddie J

    I’m with you, JPP. Having heard a lot of good things about K’Andre, I don’t want to lose him before we have a chance to see him play for our team. I think he may be a good one.

  94. Eddie J Avatar
    Eddie J

    Hartland Monahan.

  95. The Wick Avatar
    The Wick

    Bdl
    Duh…you know where I’m at on him

  96. SN Avatar
    SN

    Monaghan averaged over a point per game 2 seasons ago. $6M+ in a heartbeat. Turns 26yo this week. No brainer.
    .
    Josh Anderson of 18-19? Yes. 19-20? Yikes

  97. Bdl Avatar
    Bdl

    Anderson would almost certainly mean the end of Buchnevich with the Rangers.

  98. The Wick Avatar
    The Wick

    There are about half a dozen forwards I’d love to see on the rangers this upcoming season (not all at once lol) and you guys are talking about two of them.

  99. SN Avatar
    SN

    Be surprised if Buch is back

  100. jpp Avatar
    jpp

    GORTS WAKE UP

  101. jpp Avatar
    jpp

    No sleep for you

  102. ilb2001 Avatar
    ilb2001