3 things you need to know about Ryan O'Reilly's salary arbitration hearing
The History
After his entry-level contract with the Colorado Avalanche expired in 2012, Ryan O'Reilly rejected the team's qualifying offer, kicking off an increasingly contentious negotiation process that was further complicated by the NHL lockout.
O'Reilly, who was coming off an 18-goal, 37-assist, 189-shot and 101-takeaway performance in his third season with the Avalanche, raised eyebrows by signing a two-year KHL contract during the lockout; even after the labor situation was resolved, the restricted free agent and the Avalanche were unable to come to an agreement, and O'Reilly remained in Russia as the shortened 2013 NHL season began.
Colorado's hand was forced by a two-year, $10-million offer sheet from the Calgary Flames, signed by O'Reilly in February of 2013.
The Avalanche chose to match, keeping O'Reilly in the mix at a cap hit of $5 million per season.
The ask and the counter
Under rules of arbitration, O'Reilly had the option of accepting a one- or two-year contract from the arbitrator; as reported Monday, O'Reilly elected the one-year term, and is seeking $6.75 million.
As per Capgeek, this would put the 23-year-old at the top of the team's payroll, and within the range of the NHL's top 25 forward contracts.
The Avalanche, on the other hand, are seeking the minimum amount they have to pay under rules of arbitration: $5.525 million, or 85 percent of O'Reilly's 2013-14 base salary of $6.5 million.
That number is another source of contention in the negotiations, as Colorado would certainly prefer to use the $5-million cap hit as the starting point, while O'Reilly cites the base salary.
One other note: because the Avalanche elected for arbitration, they cannot do so again next summer when the one-year deal is up. O'Reilly, however, can choose that route if he so desires ... and if he's still with the team.
Comparables
Only Group 2 restricted free agents can be used as "comparable players" in the salary arbitration process.
Both sides will point to contracts awarded over the course of the past few years, citing career point totals amassed up to when the contracts were signed, and the player's performance in the season preceding the contract.
What follows are examples of deals that could be pointed to by each side respectively, as well as the relevant information that would be presented:
Avalanche:
- 2012: Dallas Stars F Jamie Benn (five years, $5.25 million AAV)
- 2012: Boston Bruins F David Krejci (three years, $5.25 million AAV)
O'Reilly:
- 2013: Carolina Hurricanes F Jeff Skinner (six years, $5.725 million AAV)
- 2013: Edmonton Oilers F Taylor Hall (seven years, $6 million AAV)
| Player | Games Played | Points | Points in Contract Year |
|---|---|---|---|
| Ryan O'Reilly | 345 | 191 | 64 |
| David Krejci | 377 | 276 | 62 |
| Jamie Benn | 222 | 160 | 63 |
| Jeff Skinner | 189 | 131 | 24 |
| Taylor Hall | 171 | 145 | 50 |
It's worth noting that the likes of Benn and Krejci are set to cash in when their current deals expire, likely bringing in higher than O'Reilly present ask. At the same time, Hall and Skinner were given sizable deals without ever having appeared in the postseason, something O'Reilly was able to do as part of Colorado's remarkable turnaround in 2013-14.
O'Reilly's arbitration hearing is set for Wednesday in Toronto.