The Colorado Avalanche are in a great position regarding the salary cap. According to PuckPedia, the Avalanche have a little over $2 million in available cap space, giving them the flexibility to add a low-cost player like Pierre-Edouard Bellemare, who has joined the team on a Professional Tryout (PTO).
However, the return of one or two players could significantly impact the team’s overall cap structure. Examining the Avalanche’s cap situation closely as training camp approaches is crucial.
Avalanche’s Cap Situation
Let’s talk about Gabriel Landeskog. Landeskog has been on long-term injured reserve (LTIR) for the past two seasons. According to PuckPedia, he has a $7 million cap hit. Technically, players cannot be placed on LTIR during the offseason or preseason. They can only go on LTIR once the regular season officially begins.
The Avalanche could free up that $7 million in cap space by placing Landeskog on LTIR before the season begins. However, they can field a full roster without resorting to this option. But, if they chose to do so, they could gain an extra $2 million in cap space, in addition to Landeskog’s $7 million, for a total of $9 million. This situation could change if Landeskog returns to the ice.
Valeri Nichushkin was suspended without pay for at least six months in May after entering the NHL/NHLPA Player Assistance Program due to a substance violation. This suspension reduces his salary from the Avalanche’s cap structure. According to PuckPedia, Nichushkin’s cap hit is $6.13 million. Unlike LTIR, a suspension removes the cap hit from the team’s books.
In contrast, LTIR allows the team to exceed the salary cap. For example, if the Avalanche max out the cap at $88 million and then place Landeskog on LTIR, they would be allowed to increase their spending to $95 million. This provision is included in the salary cap rules to allow teams to replace a player when he’s out for more than ten games or 24 calendar days during the regular season. However, Nichushkin’s situation is treated like he’s not even on the team. Similar to Landeskog, things could become complicated if Nichushkin returns.
Cap Problems Could Arise When Nichushkin and Landeskog Return
A healthy and productive Landeskog and Nichushkin would significantly boost the team. However, their returns could complicate the team’s salary cap structure.
Consider the following scenario: Landeskog has been cleared to play and has participated in a few rehab games in the American Hockey League (AHL) before returning to the ice with the team. The Avalanche now have their captain back, and everything is going well. Since they have not placed him on LTIR, the team’s available cap space remains at $2 million. Now, let’s assume that Nichushkin is also cleared to play. According to the terms of his suspension, he could return to the lineup as early as mid-November. It’s important to note that his return is not automatic, as it’s uncertain in what physical or mental condition he is in. Consequently, it may take longer for Nichushkin to be game-ready.
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Here’s where the trouble begins: Nichushkin has a $6 million cap hit, pushing the Avalanche $4 million over the cap. This is not cap-compliant, and they could face a financial penalty or even forfeit games for being over the cap. The Vegas Golden Knights were the closest team to facing a situation like this. They had to play with fewer players to remain cap-compliant. Having Landeskog and Nichushkin on the team could create challenges for Colorado’s management. General Manager Chris MacFarland will need to figure out how to stay within the salary cap while maintaining a solid lineup, which is challenging.
How Colorado Can Stay Cap Compliant
Assuming that both Landeskog and Nichushkin will return, the organization may have an issue.
If Nichushkin returns, his $6 million cap hit would exceed the cap ceiling. However, the issue would be resolved if Landeskog were placed on LTIR. If Nichushkin’s suspension ends but he doesn’t return, they could put him on LTIR if he meets the criteria. Alternatively, the Avalanche may consider trading him or placing him on waivers. But let’s save that discussion for another time. If the team ends up $4 million over the cap, they will need to free up space, and there are two main ways to do it.
The Avalanche could dress only 18 or 19 players for a game instead of the usual 20. They also have the option to send a player down to the AHL, but this could be complicated. According to PuckPedia, only Nikolai Kovalenko, Chris Wagner, and Jacob MacDonald are waiver exempt. Any other player sent to the AHL would have to clear waivers, which means the Avalanche could lose that player for nothing.
Colorado could consider a few options in this situation. They might place Oliver Kylington on waivers. If another team claims him, the Avalanche would no longer have to pay his salary. However, if he clears waivers and is sent to the AHL, the Avalanche would still be responsible for his salary. In this case, the team might need to explore trading a player whose salary would help them stay under the salary cap. This can be complicated as they must find a trade partner willing to take on the right salary. Alternatively, multiple players with lower salary cap hits could be moved.
Ultimately, the Avalanche will face a cap crunch in mid-November when Nichushkin is eligible to return. They may have to trade him depending on his condition and willingness to play. The problem is that there might not be a market for him. I don’t foresee anyone wanting to take on Nichushkin’s cap hit. This cap crunch is a nightmare scenario but one that the Avalanche could realistically face this upcoming season. Many decisions at training camp will be made with this situation in mind. Let’s hope it doesn’t come to it. But if it does, MacFarland could be a very busy general manager come Thanksgiving.
