Caught up with J.P. Barry, the agent for Capitals defenseman Karl Alzner, early Friday evening. He’s the man tasked with negotiating with Washington assistant general manager – and salary cap guru – Don Fishman. The two sides have been talking for months, according to Barry. Unknown if Friday’s trade of Eric Fehr to Winnipeg and the $2.2 million of cap space that cleared will have an impact on a potential Alzner deal. But both sides want to get something done. They’re just having some issues determining fair value.
“It’s not a massive gap,” Barry said. “But we have a gap nonetheless between the way that both of us see the protection.”
Alzner could always just accept the team’s qualifying offer by the July 15th deadline. That’s $826,875, according to Barry. It’s far less money than a two-year deal would bring. Remember, Alzner’s base salary was $875,000 each of the last three years and he also earned an $800,000 bonus each season. That’s why his cap hit was $1.675 million. But performance bonuses aren’t allowed after an entry-level deal expires unless you’ve just missed over 100 consecutive games on injured reserve or are over 35. Neither applies to King Karl there.
“This wasn’t even a thought in my head, really, up until the first of July. I just figured something was going to happen and didn’t think it was going to be an issue,” Alzner told radio station 106.7 – The Fan on Friday. “But it’s turned into a little bit longer of a thing than we had hoped. So now I think about it fairly often just because of the possibilities of what can happen. It’s just unfortunate that it’s taking so long. But I’m still very optimistic there’s definitely something that can get done.”
So why would Barry roll the dice and accept a qualifying offer that would net less than half as much money as last year’s salary? Because it could still provide a financial windfall if Alzner has a big season in 2011-12 and then takes the Caps to arbitration when he is eligible to do so for the first time next summer. If that happens then Washington could be shelling out more cash than it would for a two-year deal signed right now. There’s risk on both sides here. The safer course? Get that two-year deal done.
“Negotiation is what puts more money on the table. So, yeah, on a one-year basis you’re basically taking that qualifying offer, which for Karl is around the $826[000]-range, and you’re keeping open his rights for the future,” Barry said. “So if he plays well then you’re protecting his pure arbitration value going forward. It wouldn’t include that one year and lower number, right? So if we take the qualifying offer then we wouldn’t be negotiating again until probably next January. That’s how the rules work. You’d be looking at getting back to the table in January and seeing if – as you get closer to that arbitration date – you can work on a multi-year deal.”
In other words, the leverage starts to shift from team to player. So who knows? Maybe they’ll get creative as the July 15 deadline approaches. Otherwise, Alzner could decline the qualifying offer and remain a restricted free agent eligible to sign an offer sheet from another NHL team. For now, Barry claims no such offer has been made.
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