Taxi squad lets Habs save cap space
Before COVID -19, some members of the Canadiens' off-ice staff would often hit the ice after the team finished practice at the Bell Sports Complex in Brossard to play a little shinny.
John Sedgwick, the team's vice-president of hockey operations and legal affairs, was usually among them.
“I apologize for you having to see that," Sedgwick said with a laugh during a video conference Tuesday afternoon from Vancouver.
The Canadiens aren't paying Sedgwick for his hockey skills, but he is one of the team's most important people this season. Sedgwick works closely with general manager Marc Bergevin and his main responsibility is daily salary-cap management. The Canadiens are right up against the Us$81.5-million NHL cap this season, so Sedgwick is going to be a very busy man.
NHL teams are allowed to carry 23 players on their roster, but the Canadiens have only 21 to stay under the cap. Teams can also keep a minimum of four players and a maximum of six (including one goalie) on the taxi squad, which was introduced this season as a precaution because of COVID-19 protocols. Players loaned to the taxi squad are eligible to travel and practise with the team, but do not count against the salary cap.
So far this season, Jake Evans, Alexander Romanov and Jesperi Kotkaniemi have taken turns being loaned to the taxi squad. As young players, they don't have to clear waivers.
Capfriendly.com noted that when Evans spent two days on the taxi squad following the season opener, the Canadiens saved $6,465 each day against the cap. While NHL players receive a paycheque every two weeks, their salary is calculated on a daily basis. Evans's NHL salary-cap hit is US$750,000 and this season is 116 days. So if you do the math, that's where the $6,465 figure comes from.
To put that into context, Capfriendly.com explained that 36 days on the taxi squad at Evans's daily rate would create enough cap space for the Canadiens to acquire a $1-million player at the NHL trade deadline on April 12 without having to subtract a player from the roster.
Sedgwick's job has become much more complicated this season.
“Obviously, a lot of new rules to learn,” he said. “I would say the NHL and NHLPA, though, did a great job in making rules that are realistic and accommodating of the situation … things like the taxi squad and roster flexibility. I would also say that now I'm almost in my eighth year in the job, so I feel a lot more comfortable with the day-to-day of a normal season, so it's much easier to adapt.”
Before joining the Canadiens, Sedgwick was a member of the NHL Hockey Operations Department in Toronto from 2006-13 and before that he practised corporate and commercial law at the Mcinnes Cooper firm in Halifax.
“If this had been my first year on the job (with the Canadiens), I think it would be a lot more challenging,” he said.
Romanov was placed on the taxi squad Sunday and it was Kotkaniemi's turn Tuesday. Sedgwick said it's possible Nick Suzuki could have his turn on the taxi squad, but added the Canadiens weren't going to keep announcing who is put on the taxi squad since it's an administrative move and not related to what happens on the ice.
Romanov's salary cap hit is $894,167, so the Canadiens save $7,708 each day he's on the taxi squad. The numbers for Suzuki are $863,333 ($7,442) and for Kotkaniemi they are $925,000 ($7,974). There is a financial hit for young players with two-way contracts who are put on the taxi squad because they earn their minor-league salary on those days instead of their NHL salary. Evans' minor-league salary is US$225,000, while it's US$70,000 for Romanov, Kotkaniemi and Suzuki.
Sedgwick said it's important to explain the situation to players.
“Obviously, these are young men, especially in the case of Alex, sometimes things can be lost in translation,” he said. “So I can tell you when we do something like loan him, we've communicated that with his agent and explained it and made sure that he's understanding why and also the impact that it has on him. But again, I think they've all been very understanding. It's sort of something I think a lot of people in the industry anticipated heading into this season, given the rules.”
Sedgwick added that the Canadiens are happy for now carrying only 21 players on the roster and are in no rush to add more.
“I think we'll try and not to (add anyone) as long as it makes sense,” he said. "It allows us to accrue some cap space. Obviously, the most difficult part of this job and — quite frankly — so far this year we've been extremely lucky this way, is being ready to adapt to things like injuries. So it's hard for me to imagine all the different scenarios that could play out. But I think all things being equal, I don't imagine we would expand our roster any time soon.”