How Does Lamoriello's Departure Affect Contract Negotiations?
Do the contract talks reset once the new GM comes in?
Prior to the announcement that the New York Islanders were letting Lou Lamoriello go, it seemed that they were close to contract extensions with Kyle Palmieri and Adam Boqvist.
I’m sure there had been conversations with the many other restricted and unrestricted free agents, even if that information wasn’t shared on break-up day when ijtalking with all the players.
However, now that ownership is going in another direction, how does that affect contract negotiations?
Lamoriello had a plan. It was clear that he was working with Palmieri’s camp to bring back the veteran forward on a team-friendly deal. But could a new president/GM not be too fond of bringing back a 34-year-old forward?
There are a few ways that the negotiating process can unfold when a GM is fired mid-negotiation.
STALL: All the negotiation conversations that had happened with Lamoriello could be put on hold, and when a new GM gets named, those conversations can resume.
RESET: Any talks that agents had with Lamoriello on potential plans could be erased, leaving much more work to be done. The new GM doesn’t owe any of these players anything, and past results may not matter nearly as much as they would have under Lou.
DONE DEAL: While we haven’t received any announcements regarding extensions, that doesn’t mean they weren’t already signed and sent to central registry. I wouldn’t be shocked if Palmieri’s deal had been signed, stamped, and sealed before Lamoriello’s departure. The same could be said for a few other players, as well.
Now, this is not to say that the new GM won’t value any of the recent history of the player looking for a new deal and completely disregard any of the traction made by the club to convince a player to sign a team-friendly deal or take a certain direction on a contract. If the Islanders worked hard to convince Noah Dobson, for example, to take a long-term deal instead of a bridge deal, resetting those negotiations could do more harm than good.
But it’s also important for the new GM to be able to go the route that he wants to go, as that’s what he’s getting paid to do.
Let’s be clear. The Islanders roster, as currently constructed, isn’t a Stanley Cup contender. There’s a lot of work to be done. On paper, having north of $28 million in cap space seems incredible. But in reality, that number is more like under $10 million when the team handles their own free agents.
Turning this team into a true contender will take a few years — it’s not an overnight thing — so every decision that comes now affects that timeline.
I will never forget when we chatted with Lamoriello ahead of the 2023 NHL Draft in Nashville. He said that had he known there would be a flat salary cap due to COVID-19, some contracts would not have been signed, at least at their current cap hit.
While we are beyond COVID-19, the point here is that specific contracts that were in the works, especially at the discussed price point, may no longer be the correct route, especially if the Islanders are going to take a few steps back to be able to leap forward in a few years.
This will not be a full rebuild, especially with players like Mathew Barzal, Bo Horvat, and Ilya Sorokin all signed to long-term contracts. However, building a championship team isn’t a walk in the park, and the new GM needs to assess everything thoroughly before making short-term decisions that could impact the long-term direction.
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Barzel and Dobson should be concerned with elevating their games. That means them spending the Summer with an Adam Oates and in the weight room. Just don’t keep doing the same Summer program it’s not working!
Guys like Holmstrom and Tsyplakov are going to be keys. They are top 6 guys. Holmstrom and Tsyplakov are going to breakout completely next year. They are talented and fun to watch. It’s simply about being comfortable and confident, which will come naturally next year.