Recall the days when Burke and Lowe were at each other’s throats due to Dustin Penner? Burke didn’t mind the offer sheet to Penner, but he did mind how much Penner was offered. The reason why is because it raises the level of salary for 2nd contracts after the ELC, Entry Level Contract. If a player of Penner’s talent demands that salary, then how much more should a player with slightly better talent ask for on their 2nd contract? Here’s a glimpse onto some of the players 2nd contracts.

In my research, I chose players picked in the first round starting from 2001 and players that we Duck fans know. I did not know how wild and careless Lowe was with the Oilers at that time based soley on 2nd contracts. Here’s the 2006 signings that I picked out. (Points the previous year means points earned the year before earning their 2nd contract.)

Hemsky didn’t pop out until realizing that Lowe made two outrageous RFA offers to Buffalo’s Thomas Vanek ($50 million for 7 years) and Anaheim’s Dustin Penner ($21.5 million for 5 years). Lowe wasn’t just crazy for one off-season, he’s been like that. Granted, Lowe is trying to win, but disregards the fiscal responsibility he has to his team and the league. He is a genius in that Lowe is projecting that Buffalo would not be able to match the offer sheet to Vanek. That attempt failed. So Lowe does the same with Penner, and it works. Anaheim can’t afford Penner because they had just signed Bertuzzi and Schnieder to really large contracts. (That’s a completely different argument to talk about!)

The 2nd contract sets a precedent to establish a higher level of pay. Look at the difference after 2006 signings and you can see a jump in salaries for 2nd contracts. Based upon JVR’s production, look at how JVR is making $25.5 million for six years due to potential. It seems like Penner’s contract all over again.

We will never see the NHLPA get upset at this because it really isn’t their problem; although, they don’t see it as a problem at all. It’s owners and GM’s that control who gets how much. But with the rising costs of 2nd contracts, teams are going to struggle to keep players within their system or not be able to sign players to help their system.

While I don’t think Getzlaf, Perry, or Ryan’s contract are not that bad, it is only because I became accustomed to Penner’s contract being $4.3 million for five years. Cam Fowler’s 2nd contract is $20 million for five years, $4 million per year. I love Cam, but Cam is making more than Beauchemin, who’s our #1 defenseman. Getz, Perry, and Ryan make more than Teemu, but it was Teemu who lead the team in scoring last season.

May be there does need some changes with 2nd contracts to the CBA. JVR will be making a guaranteed $4.25 million for six years. If JVR is injury prone or begins to play terribly, he will still be making Teemu Selanne money. As a small market, this tidbit of 2nd contracts should be something I pay attention to and see if there are any revisions that can be made.

The more I research items about how the NHL works, the more I wonder how does the NHL actually survive and grow from the business side. As a sport, I find it very addicting because there are less down times within the game unlike baseball, football, or basketball. Yet to have a CBA that allows more than 50% of its revenue go to players and then to have the same revenue tied to a cap with guaranteed contracts seems detrimental and archaic. No wonder why Disney left the NHL arena. It’s just not profitable unless you happen to own one of the big market teams.

* Salaries from Capgeek.com.