Inside The Penalty Box 01.07.08: Ovechkin, Lundqvist And Osgood Working On Extensions

Posted by Neil Borenstein on 01.07.2008

As we head deeper into January, the process of signing stars to contract extensions is heating up. The biggest ongoing negotiation involves the Washington Capitals and Alexander Ovechkin. But the New York Rangers and Detroit Red Wings have some stars of their own to get inked past this season. Check out Neil Borenstein’s thoughts in this week’s edition of Inside The Penalty Box!

here's half the 2007-08 NHL season under our belts and the time is now for teams to start looking into contract extensions for their star players. At least this season, it seems as if January is going to be a popular month for several teams to invest in long-term deals for their franchise players. Negotiations are already heating up among many teams around the league.

Photo Credit: Yahoo! SportsIs Alexander Ovechkin worth $9-10 million a season?

The Washington Capitals' pursuance of a contract extension for their star left wing, Alexander Ovechkin, is going to be the most closely monitored for the remainder of the year. Ovechkin, entering the final year of his rookie contract that could pay him $3.8 million with bonuses this season, is reportedly seeking a deal in the $9-10 million range from the Capitals, according to The Ottawa Sun.

When Sidney Crosby signed his five-year extension with the Pittsburgh Penguins over the summer for $43.5 million ($8.7 million on average per season), it was believed that was the standard Ovechkin's contract negotiations would follow. But the Russian star fired his agent, Don Meehan, and is being represented by his mother, Tatiana. And naturally, mommy thinks her special little boy is worth damn near the maximum allowed salary under the collective bargaining agreement.

The Ottawa Sun reported that Ovechkin felt insulted at a recent attempt by Washington to ink him to a new five-year deal. According to the paper, the team offered $37.5 million, or $7.5 million per season. Yet another case of "how will I feed my family?"

The "insult" must stem from the fact that Washington didn't think enough of Ovechkin to offer at least the amount of money Crosby was granted during the offseason. At a whopping $1.2 million less per season, the 22-year old goal scorer supreme cannot possibly be outshined that greatly by the man he ended up beating out for the Calder Memorial Trophy for Rookie of the Year honors in 2006.

Comparing Ovechkin to a different standard, however, doesn't make Washington's offer look all that bad, at least as a first attempt. Earlier this season, the Ottawa Senators signed perhaps their best forward in Dany Heatley to a six-year, $45 million extension, which averages out to $7.5 million per season – the exact same amount of Washington's initial offer to Ovechkin.

I think a comparison to Heatley is better suited for Ovechkin, as Crosby's worth to the Penguins is far different than his to the Capitals.

Crosby is a more versatile player; able to play in any situation a game can throw at him. He can play at even strength, on the man advantage or even on the penalty kill, something the Penguins and he began experimenting with this season. Plus, at the young age of 20, Crosby was granted the Captain "C," which adds a whole new set of responsibilities. Crosby's quick maturity into the NHL game makes him worthy of an $8.7 million deal. In fact, he's probably worth over $9 million, even.

Ovechkin is not at the level Crosby is, however. His talent is unquestionable, and he is probably one of the only true 60-goal threats in the NHL. But he hasn't matured like Crosby, possessing that cockiness many of the game's greatest Russians have brought with them into the NHL game. The fact that he is an alternate captain surprises me to a degree, I would never entrust him with the "C." And while a definite even strength and power play asset, I don't really view Ovechkin as a tool for the penalty kill. Plus, for as much as Ovechkin is a threat to score probably 20 more goals per season than Crosby, Crosby will annihilate him in the assist department by probably 30-40 helpers per season.

Instead, I liken Ovechkin's value to that of Heatley. Heatley is too a threat to score 60 goals in a season, though 50+ is more realistic. He will also grab some important assists, but will never be considered one of the league's best playmakers. Plus, while guys like Daniel Alfredsson, Jason Spezza and even Wade Redden take on the leadership role, Heatley can just go off without worrying about his image and influence on the rest of the team.

It's possible, though not yet proven, that Ovechkin is a better player than Heatley. With that being the case, it would even be fair for Ovechkin to command a contract more than Heatley's, though still less than Crosby's. Perhaps in the $8-8.25 million range per season would better suit Ovechkin's value and would be deemed less of an "insult" to him and his representatives.

That's at least more realistic than $9-10 million a season, which simply isn't worth it. If the Capitals get stuck in a situation where this is the only salary range Ovechkin will accept, they're going to have one hell of a decision to make. I would let him test restricted free agency, with the option of later matching any offer sheet presented to him. But if that offer sheet lies in the $9-10 million range, the Capitals should come to grips with his departure and welcome a ton of top draft picks in the return. Losing Ovechkin would not be easy, but if any player is worthy of being the highest paid player in the NHL at $9-10 million, it's not Ovechkin.

Photo Credit: Yahoo! SportsHow much money will it take to re-sign King Henrik?

The New York Rangers have two big decisions to make in the coming month with regard to two of their most important players. Both goaltender Henrik Lundqvist and forward/agitator Sean Avery need contract extensions, as they are both playing on one-year deals and are too important to lose over the offseason via free agency.

According to The Daily News, Lundqvist's agent, Don Meehan, is working on a new contract for his client. Meehan is optimistic that a deal could be reached by the end of the month.

"I spoke with [GM Glen Sather] just before Christmas and he and I have an understanding that, right after the World Junior Championship, we would sit down and discuss this," Meehan told The Daily News, according to ESPN.com on Jan. 2. "I'd expect that at the start of business [Wednesday], I'll give Glen a call and we'll get to work on it."

As a Rangers fan, that's very reassuring news. However, the amount of money it's going to take to ink Lundqvist to a long-term extension is going to be tricky. Even though the Rangers have just over $18 million committed to salaries next season, according to nhlnumbers.com, there are a lot of players that need new contracts. And with Lundqvist reportedly seeking anything from $6.75 million to the mid-$7 millions, that's a pretty hefty sum to add to a payroll that already has players signed to $7-plus million per season deals. Even if the salary cap goes up from the current $50.3 million it's at now, another $2-3 million doesn't really make this that much easier.

Regardless, the Rangers have very little choice but to re-sign Lundqvist, and would be foolish if they hit a snag and abandoned that plan. He's the most consistent netminder the Rangers have had on their roster since Mike Richter, and he's loved by the fans. That feeling is mutual, as he wants to stay in New York and has made that very well known.

As far as Avery is concerned, there's no update to his status in negotiations. One would have to assume Sather is focusing on getting Lundqvist's contract out of the way before focusing on another big negotiation process.

As with Lundqvist, though, it's imperative Avery gets inked to a long-term deal, as the Rangers' play is much better hockey with him in the lineup. It's tough to really know what the dollar amount is going to be for Avery, but I wouldn't be shocked nor opposed to a deal in the $3 million per season range.

In Los Angeles, Avery never played like he deserved that kind of cash. In New York, he's worth every single penny of it, and I think his contract will come out to be around that figure.

Photo Credit: Yahoo! SportsChris Osgood has outshined starter Dominik Hasek this season.

Meant to be a backup to Dominik Hasek, Chris Osgood has completely outshined his counterpart this season. Osgood has proven to be the best option in between the pipes in Detroit, and his top-notch goaltending is a huge reason why the Red Wings are currently first in the entire NHL with 67 points – a whopping nine points greater than the Eastern Conference's greatest opposition in the Ottawa Senators.

Osgood currently leads the NHL in both goals against average (1.68) and save percentage (.932) in 22 starts and 23 overall appearances this season. He has also only lost three games this season with a 19-2-1 record and posted two shutouts. He has taken advantage of Hasek's injuries and flashes of inconsistency this year. And with the league's leading defense, the Red Wings have little to complain about and better ride Osgood while he's this hot.

Something else the Red Wings are looking into with regard to Osgood is a contract extension. The Ottawa Sun reports that the team is close to signing an extension with their true No. 1 netminder. Osgood wants to continue playing for more wins and more championships, and Hockeytown, USA seems to be the best place to do it nowadays. All the Red Wings seem to do is win, though their playoff success hasn't brought them to a Cup for quite some time.

While he's going to land a raise from the $800,000 he's making this season, I don't believe Osgood is going to require all that much money to stick around. He might be a $1.5-2 million investment, which is more than worth it based on his success in Detreoit.

Osgood is 35 years old, so it's not as if it's a stretch for him to continue playing for quite a few more years. He doesn't have room for a six or seven-year deal, but one with maybe two or three years on it is not out of the question.

This extension could spell the end for Hasek following this season. He would no longer be an appealing option for the Red Wings, especially at 42 years old. With Jimmy Howard also waiting in the wings for significant playing time, there's really no room for The Dominator. Alas, if there were ever one last shot for Hasek to make an impact in the NHL, it would be essentially as the Red Wings' backup this season. It's perhaps his last opportunity to once again go out a champion.

Feedback …

As bad as it sounds to the fans, if they trade Vinnie [Lecavalier] in a package and get four-five players in return, solid guys who'll help out in the next few years and some prospects in the mix, it'd probably be better for the team's future in the standings. What that would do to the team's future in terms of attendance...well, that's the sticking point. Is it worth losing out on fans short-term to try and kickstart the team's long-term outlook?

~ Rod Oracheski

Thanks for the comment, Rod!

I'm not sure I'm jumping on that bandwagon to trade Vincent Lecavalier. Getting back four or five young talents is intriguing, but not at the expense of a star the caliber of Lecavalier. To me, this team is one strong netminder and maybe one defensive defenseman away from being competitive. In order to fill those holes, I'd rather lose Brad Richards than the real cornerstone of the Lightning franchise in Lecavalier. Plus, as you noted, with the way Lecavalier is playing, you risk pissing off and alienating your fans in a deal that moves Vinnie.

He could definitely bring back some high-end prospects that would benefit the Lightning in the future. But he's just too good to deal away right now.

Thanks again for the comment, Rod, and everybody keep them coming!

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~ Neil Borenstein