One common narrative amongst NHL teams this offseason is a major cap crunch. Many teams are up against the salary cap and it is becoming harder to move players. June 29 was an example of how difficult it’s been when New York Islanders general manager (GM) Lou Lamoriello had to include a 2026 second-round draft pick to clear the contract of Josh Bailey. The Chicago Blackhawks acquired an asset for Bailey and then immediately bought him out, making him an unrestricted free agent (UFA). It just goes to show how valuable cap space is at a time like this. The Islanders sit in a tough spot with about $10.3 million in cap space, but with key UFAs they would like to retain.
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Lamoriello has stated he would like to bring back all of his free agents, but it’s going to be a challenge. “We still have a desire to sign our own (free agents). But, they have to be willing to do the same,” Lamoriello said. (from ‘Islanders trade Josh Bailey at NHL Draft, but free agent uncertainty remains’, The Athletic, 6/29/23) Scott Mayfield is going to draw a ton of interest on the free agent market, so it’s a very difficult decision for the Islanders.
Do they commit to another long-term contract? Losing Mayfield would create a hole on the blue line and there aren’t many options on the UFA market to replace him. Lamoriello has to get creative this offseason because of the cap logjam. He needs to find ways to move money out and improve the team at the same time. It will be a difficult task for the 80-year-old GM, especially given the fact the salary cap did not increase this year as much as expected.
How Can the Islanders Clear Space?
Well, one thing that is very clear is the Islanders don’t have many assets to trade. They have some brutal long-term contracts that take up most of their cap room. There are a few ways Lamoriello can get creative to create space. The first buyout window ended Friday, June 30, so that is out until later this summer and probably very unlikely.
The trade market is the next step and the only option. He could consider moving out Jean-Gabriel Pageau who has three years left at a $5 million cap hit. Pageau is such a vital piece to the Islanders because he plays in every key situation, including the penalty kill, power play and is one of the NHL’s best faceoff men. Unfortunately, the Islanders don’t have many other options to clear space if they want to improve. Brock Nelson is not going anywhere considering he was the team’s leading scorer and easily the best player all season. Could they find a home for Kyle Palmieri? Palmieri has a cap hit of $5 million for two more seasons and has not lived up to the expectations of being a goal scorer when they signed him.
I’m not sure how Lamoriello is going to navigate through this situation, but he has to act quickly. They have major holes to fill despite the limited space. They still need a scoring winger in the top six, and a puck-moving defenseman. The power play was one of the worst in the league last year, especially during their first-round playoff series loss to the Carolina Hurricanes. Every time they were on the ice, they generated practically nothing offensively and had trouble moving the puck, especially on zone entries. Lamoriello can find a way to make a “hockey trade” and not give up prospects or any additional first-round picks. He can try to trade a roster player for someone else, similar to the Matthew Tkachuk trade made last summer.
Blame Lamoriello for the Cap Crunch
There is no question the Islanders are in this cap situation because of poor judgement from Lamoriello. “We’re in this position because of what happened with assumptions — which it’s real bad word — of where the cap would be. So some of the signings that we made three years ago […] we would not have done because, in your planning, you also know what the progression will be and can be because of where the revenues are going.” (from, ‘Islanders GM Lou Lamoriello Shares Pre-Draft Updates’, The Hockey News, 6/27/23) It’s not exactly an endorsing statement you want to hear from your GM. The Islanders based their decisions on assumptions and that is why they are in this position. It’s up to Lamoriello to get out of it. Once he committed long-term contracts to guys like Kyle Palmieri, Pageau, Matt Martin, and Cal Clutterbuck, he left almost no space to improve the roster.
As I mentioned previously, the Islanders are able to officially sign franchise goalie Ilya Sorokin to an extension on July 1. Lamoriello must make that a top priority this offseason. The Islanders don’t want this distraction to carry into the season. Luckily, next season they have veterans Martin and Clutterbuck coming off the books so that will open cap space and two important roster spots. With the free agency period set to begin on Saturday, July 1, the Islanders will likely not be active players because of their cap issues. The only way to navigate through this is by making a trade to clear space.
Related: Islanders Need to Prioritize Extending Ilya Sorokin This Offseason
Lamoriello still believes in this core group, although the fans may not share the same sentiment. “I believe in this core group,” said Lamoriello in his media conference on June 6. “I believe in our goaltending. Our assets are in our defense. You go up front and we’re fortunate to have the five (centers) we have. We have flexibility.”
“The goal is to be where these two teams (Vegas and Florida) are. We have to get better. I have to get better. Our coaching staff has to get better. Our players have to get better.” Hopefully they can find a way to shed some cap space in the next few days or this will be looking like the same team that lost in the first round last year, minus a couple of players.