Hartnett: Contract Showdown Looming Between New Rangers GM And Veteran Stepan
By Sean Hartnett
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The clock is ticking.
On Monday afternoon, the NHLPA announced that Derek Stepan's arbitration hearing has been set for July 27 in Toronto. This means it's crunch time for the cap-crunched Blueshirts.
Less than two weeks remain for the sides to hammer out a deal that would avoid the bitter process of salary arbitration. With roughly $10 million left in available cap space, it's going to be a tight squeeze for the Rangers to re-sign Stepan and fellow key restricted free agents J.T. Miller, Emerson Etem, and Jesper Fast.
Should Stepan and the Rangers fail to reach an accord before the hearing, it's likely Stepan would be awarded a two-year deal, possibly at a higher annual-average rate than the Rangers are comfortable with. In the eyes of an arbitrator, Stepan could certainly win a two-year, $7 million AAV deal that would be a bitter pill for the Blueshirts to swallow. Not only would a cap hit of $7 million or greater plunge the Rangers into further reaches of salary cap hell, it would also set up Stepan to potentially become an unrestricted free agent in the summer of 2017.
The Rangers could get burned by their long-standing "bridge deal" philosophy. They had their chance to sign Stepan to an affordable, long-term agreement when he finished his entry-level contract back in the summer of 2013. Stepan missed all of Alain Vigneault's first training camp and the entire 2013 preseason while pushing for a long-term deal. Whereas the Rangers deviated from their philosophy to sign defenseman Ryan McDonagh to a six-year, $28.2 million contract, they piled pressure on Stepan to sign a bridge deal.
Every Rangers fan remembers former GM Glen Sather sending a clear and strong message to Stepan during a 2013 preseason telecast, though the message also hinted the promise of Stepan getting paid big bucks in the future.
"It's unfortunate that Derek has decided to listen to his agent instead of realizing that he's in a situation that he's going to get paid; it's just not today," Sather said. "I hope he starts to get a little wiser about this decision. Every day he misses is going to hurt him."
Eventually, Stepan signed a two-year, $6.15 million bridge deal. In present day, the Rangers are reaping the benefits of signing one of the league's premier defensemen in McDonagh to a $4.7 million AAV contract. The Rangers wouldn't be in the tough spot they are now had they made the same exception with Stepan as they had with McDonagh. It was obvious back in 2013 that both were on their way to becoming franchise cornerstones.
Sather isn't in charge these days. Recently installed replacement Jeff Gorton has inherited the task of attempting to lock down Stepan to a long-term deal that would avoid arbitration. The onus is on Gorton to satisfy Stepan with a pact at a cap number below what Stepan could potentially earn in arbitration. Perhaps, a no-trade clause and the security of staying with a competitive team could sway Stepan into committing his long-term future to the Rangers.
For the Rangers, a $7 million arbitration awarding might force them to trade their all-situation, alternate captain. Doing so would be a dramatic reset for an organization that has qualified for three Eastern Conference finals in four years and a Stanley Cup Final berth in 2014. Stepan has undoubtedly been integral to the Blueshirts' recent success.
It all really depends on the Rangers' thinking. Maybe they're prepared to trade away third-pair defenseman Kevin Klein and his remaining three-year, $2.9 million AAV contract to pave the way for a Stepan megadeal. This would allow Raphael Diaz to compete with high-ceiling youngster Brady Skjei for a spot on a third pairing. Diaz carries an affordable cap hit of $700,000.
While not quite in the elite bracket of NHL centers like Jonathan Toews and Anze Kopitar, Stepan has proven to be dependable, and has averaged 0.78 points per game over the past three seasons.
It's a lot harder to replace a prime-aged, upward-trending key center than it is a third-pairing defenseman. Surely, the Rangers are intelligent enough to make the right choice.
Follow Sean on Twitter at @HartnettHockey
