While most of the headlines around the NHL in July focused on free agents who switched teams, perhaps the most significant signing of the summer has one star player staying right where he is. Sidney Crosby the young phenom with the Pittsburgh Penguins will forego restricted free agency after next season by signing a 5-year contract extension worth $43.5 million pro-rated. The contract will kick in after the 2007-8 season and keep Crosby in the “steel city” through 2012-13. The new deal averages out to $8.7 million per season a substantial raise over the $850,000 he will make in 2007-8, the final season of his three-year entry- level contract.
That “Sid the Kid” will make over ten times his current salary should come as no shock considering his point production on the ice, as well as his marquee value off of it. After a stellar 39-goal, 63-assist rookie campaign, Crosby followed with an impressive encore, posting 36 goals and 84 assists in a remarkable sophomore season. At the tender age of 19 he has already cemented his status as one of the great talents in the game, capturing the league scoring title as well as the Hart Trophy for the league most valuable player just this past season.
It is all the more surprising then that he will make significantly less than the maximum salary allowed under the Collective Bargaining Agreement, which is set at 20% of the current $50.3-million salary cap, or $10.06 million per season, when lesser players such as Scott “13 Goals” Gomez are signing for upwards of $51.5 million over seven years, with the New York Rangers.
With the inflationary rise of NHL salaries threatening to make a mockery of the so called ‘salary cap era’ Crosby makes a big statement as far as his desire to win is concerned. We’ve heard of leading by example on the ice, but in the modern NHL where financial considerations sometimes take precedence, this kind of leadership off the ice is just as important. By signing for significantly less than market value his team should have enough financial flexibility going forward to lock up their other stars Evgeni Malkin and Jordan Stall when their entry level contracts expire.
It begs the question what overall effect the Crosby signing will have on the market place for other free agents. The economic landscape in the NHL has always been as shaky and unstable as the surface on which the game is played. The league operates like any business under the law of supply and demand, and any time multiple teams are going after a limited quantity of high-end free agents, the price will be high. Whether “Sid the Kid’s” actions will make a great difference remains to be seen, it is easier for high profile players to take these short term financial hits, since they would likely recoup any losses through endorsements.
It does however put the onus on other superstars such as Alexander Ovechkin to take the proverbial home town discount. Like Crosby, Ovechkin is in the final year of his contract and could command $10-million in salary. Yet if he chooses to take more money than his Pittsburgh counterpart and thus monopolize precious salary cap space, it is likely he will be considered selfish, and his desire to win questioned
NHL players have a reputation for being more polite and humble than other professional athletes. They are seen as passionate competitors who love and respect the game, it’s high time they put there money where their mouth is, and show that they prefer wins to “bling.”
