If P.K Subban’s arbitration case goes ahead as scheduled Friday, Habs fans might want to get accustomed to uncertainty surrounding the contract status of their star defenseman for the next couple of years. Subban is seeking $8.5 million in arbittration, Montreal countered with $5.25 million.
Barring a couple of last minute settlements, Rand Simon of Newport Sports and Andre Lepage of the BCF law firm in Montreal will have a very busy couple of days. And they’ll probably get to know each other a lot better.
Simon, a former staffer here at THN and now an indispensible contract resource for Newport Sports, is scheduled to argue the salary arbitration cases for Nick Spaling of the Pittsburgh Penguins Thursday and P.K. Subban of the Montreal Canadiens Friday. Lepage, whose firm is retained by both the Penguins and Canadiens, will be arguing in front of the arbitrator in favor of the teams involved.
Of the 23 salary arbitration cases that were originally filed, only Spaling and Subban remain unresolved. Twenty came to terms before their hearings and Vladimir Sobotka of the St. Louis Blues, who will play in the Kontinental League next season, was awarded a one-year deal for $2.725 million, which he must honor whenever he returns to the NHL.
The arbitration case involving Subban is certainly the most compelling and prominent of all those that were filed and it’s looking as though the two sides are on a collision course that will see this thing go the distance. The two sides have had a history of having difficulty in contract negotiations and as of Wednesday morning at least, were not even close to consummating a deal that is suitable for both sides.
And there’s no doubt the Canadiens are taking a substantial risk here. In their pre-arbitration filings, the Subban camp is asking for $8.5 million and the Canadiens are requesting an award of $5.25 million. The Canadiens could have elected to take a two-year award, but chose only one. And there are a couple of reasons for that. First, Subban will still be one year away from being an unrestricted free agent after the 2014-15 season and the Canadiens have the option of taking him to arbitration next summer. If Subban doesn’t have a banner season, the Canadiens can come in with an offer of up to a 15 per cent pay cut on whatever Subban is awarded.
Secondly, a two-year award would not allow the Canadiens to even talk to Subban about a contract extension for at least 12 months, whereas a one-year deal will allow them to try to hammer out a deal with Subban starting Jan. 1, 2015.
But the risk for the Canadiens is very real. If Subban has an even better season in 2014-15, he could take the Canadiens to arbitration again next summer and really torch them on a one-year deal. If all that happens and he goes through arbitration again, it’s difficult to fathom Subban wouldn’t simply play out his last season before unrestricted free agency then explore the market. And even though the Canadiens can announce as early as June 15 of next year that they intend to take him to arbitration, any team would be free to submit an offer sheet before July 5. The Canadiens would then either face the prospect of losing Subban for draft picks or be forced to match the offer and not be able to trade him for a year.
Either way, Subban wins here. The Canadiens request of $5.25 million represents a 40 percent raise on the $3.75 million Subban made last season. And that’s the worst-case scenario for him. Best case will be arbitrator Elizabeth Neumeier chooses Subban’s number of $8.5 million, but she can also pick a number anywhere between the two. (Spaling filed a salary request of $2.85 million for next season, while the Penguins countered with $1.65 million.)
Subban’s hearing is scheduled for 9 a.m. Friday and the decision must come down by Sunday afternoon. The two sides have until the decision to work out a deal on their own, but the reality is that if this one gets to the hearing stage, there almost certainly won’t be a deal.
So the fate of one of the NHL’s best defensemen and one of its most marketable players is very much up in the air. And if it goes to arbitration, Canadiens fans had better get accustomed to uncertainty surrounding Subban, probably for the next two years.