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Chicago’s RFA Mistake

The Chicago Blackhawks appear to have made a very big procedural mistake.  Six of their players, Cam Barker, Troy Brouwer, Ben Eager, Colin Fraser, Aaron Johnson and Kris Versteeg (many reports have called this group the Chicago Five - it is unclear if that means one of these six is not involved), may have not received qualifying offers correctly.  If this is the case, these players would become unrestricted free agents.  Apparently, these players had their qualifying offers mailed to them on June 29th.  The deadline for players to receive their qualifying offers is 4PM ET on June 29th (early stories incorrectly listed July 1st as a deadline).  Usually, qualifying offers are sent by courier or by fax to the player’s agent, but this was not done in these cases.
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The NHL is investigating the situation and may decide that these players are unrestricted free agents.  One problem with the investigation is that neither the NHL nor NHLPA are in a situation where they benefit from Chicago losing these players. It is in the best interests of both for NHL revenues to rise and one of the biggest success stories for rising revenues has been in Chicago where Rocky Wirtz has significantly improved things from the days his father Bill Wirtz owned the team.  Neither gains any money if the Blackhawks lose players to free agency and risk losing the Blackhawks financial comeback if things go poorly.  It is probably the individual agents who are most strongly fighting for the player’s rights to free agency and they do not have a lot of clout in the system

With their signing of Marian Hossa this summer, Chicago does not have a lot of salary cap room.  They would likely re-sign these players at a lower cost if they are restricted free agents than they would be able to as unrestricted free agents.  As UFA’s they would likely lose some of these players to other teams.  If there is any such fallout, Dale Tallon should lose his job as Chicago Blackhawk GM.  Teams cannot afford stupid procedural mistakes.  This is especially true if they may wind up costing the services of Calder Trophy nominee Kris Versteeg.

The NHL has apparently wound up their investigation of the story and passed on their findings to the NHLPA.  It is expected that the results will be released within the next day or two.  Most are guessing that they will let the mistake go.  This might show that the CBA structure has set up a situation where it is not in the NHLPA’s interests to fight for the rights of some of their players.

Filed in: | The Puck Stops Here | Permalink
 Tags: Aaron+Johnson, Ben+Eager, Cam+Barker, Chicago+Blackhawks, Colin+Fraser, Dale+Tallon, Kris+Versteeg, Troy+Brouwer,

Comments

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Even better, QO’s aren’t supposed to be sent through the mail in the first place.

Posted by HockeyinHD on 07/06/09 at 07:57 AM ET

J.J. from Kansas's avatar

I agree with Cainer.  I don’t know all of the details, but it seems to me that Chicago broke some black-and-white rules here and that the punishment is laid out clearly in the CBA.  While, in the short run, letting Chicago get away with this would be in the league’s best interest, I believe that following their own rules is best for their long-term success. 

I’d really like to see the NHLPA go to bat for these guys here.  Any one of them could probably find himself an unrestricted free agent if he were to come out in the press and say that’s the way it should be, but in the process he would be doing irreparable damage to his career and his reputation.  One player can’t do it, but that’s exactly what the NHLPA is supposed to be doing for him.

Posted by J.J. from Kansas on 07/06/09 at 08:17 AM ET

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According to this story on George Malik’s blog, the issue is pretty much settled…

On Sunday evening, multiple credible sources, including TSN, reported that Chicago Blackhawks GM Dale Tallon’s failure to submit qualifying offers to five restricted free agents would receive no disciplinary action from the NHL…

And even though the League ruled against the Devils in 2000 when they did the same thing, here’s what a Sun-Times reporter wrote about the Hawks gaff (bold text is mine):

The New Jersey Devils had a similar problem in 2000, when they ‘’forgot’’ to send qualifying offers to Brian Rafalski and John Madden. Rafalski was scheduled to receive $450,000 and Madden $550,000. Instead, they became unrestricted free agents, and the Devils ended up signing Rafalski to a four-year, $11 million contract and Madden to a four-year, $7 million deal.

When the Devils made their mistake, there was no salary cap. The Hawks wouldn’t be able to rectify their situation as easily if their restricted free agents are cut loose.

So, even though the two infractions are the same, the thinking is the League should overlook the Hawks transgression because it would hurt them. Ludicrous.

Posted by OlderThanChelios from Grand Rapids on 07/06/09 at 09:32 AM ET

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Don’t the players have the right to file a grievance individually, as well as the NHLPA for all of them as a whole?

I would think both Cam Barker and Kris Versteeg would draw the most money on an unrestricted basis, and might be influenced by their agents to file grievances.

Posted by CJBear71 on 07/06/09 at 09:42 AM ET

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FYI - Aaron Johnson filed for arbitration, so that effectively takes him out of this discussion.

Posted by CJBear71 on 07/06/09 at 09:44 AM ET

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Rather than dealing in speculation, let’s deal in fact.

Section 10.2 of the CBA reads in part:
“...the Prior Club of a Restricted Free Agent must tender to the Player, no later than 5:00 p.m. New York time on the later of June 25 or the first Monday after the Entry Draft of the final year of the Player’s SPC, a “Qualifying Offer"..."

Note that the CBA says “tender to the Player” and not “received by the Player.” Futhermore, the CBA is completely silent on the manner by which to offer must be tendered to the player (i.e. courier, registered mail, fax, etc.). Customary practice has been transmittal via fax or overnight courier, but established contract law has ruled that post-marks are sufficient to establish intent to meet deadline provisions, particularly in the case of “tenders”. Chicago’s case would be strengthened if copies of these documents were also submitted to NHL Central Registry in advance of the deadline.

Keep in mind that qualifying offers expire on July 15, and what’s really at stake here is Chicago’s right to match and/or receive compensation for any of those RFA players who might elect to sign with another team. One partial remedy for the Blackhawks would be to take any eligible RFA players in question to club-elected salary arbitration which has a deadline of 5:00 pm EDT on July 6.

All that said, the right decision in this instance would be to rule in favour of the Blackhawks, provided proof can be provided that the qualifying offers were indeed posted prior to the deadline, and then to clarify and codify the manner by which qualifying offers need to be transmitted to Players and/or that physical receipt of the qualifying offer by the Player must occur prior to the deadline.

Finally, this matter is different from the material breach by the New Jersey Devils in 2000 when qualifying offers were not sent out by that team period, let alone sent in the “wrong manner” or not in advance of the deadline.

Posted by Matthew McCallum from Redding, California on 07/06/09 at 01:11 PM ET

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