The Washington Capitals waived Evgeny Kuznetsov on Saturday, the first step in what general manager Brian MacLellan labeled a “fresh start” for the veteran center. Kuznetsov had previously been in the NHL/NHLPA Player Assistance Program for the past month with his full $7.8 million cap hit off the team’s books.
With Kuznetsov’s full clearance from the program likely coming shortly, the Russian centerman’s cap hit will come back with him.
So, what are the salary cap implications surrounding Kuznetsov and what options do the Capitals have?
Kuznetsov’s large cap hit for the rest of this season and the next will make him very unlikely to be claimed by another NHL team before Sunday’s waiver wire deadline. MacLellan stated Saturday that the organization plans to send Kuznetsov down to the AHL’s Hershey Bears if he does go unclaimed.
“I don’t know [if he’ll be claimed],” MacLellan said Saturday. “We’ve got 24 hours here to see if someone will put a claim in on him.”
Kuznetsov’s demotion, if he chooses to report, would save the Capitals a pro-rated $1.15 million in salary cap space. That is due to wording in the 2013 CBA which says that a team only derives limited savings from demoting a player on a one-way contract to the AHL. The savings are calculated as the league minimum salary ($750,000) plus $375,000.
If Kuznetsov does not report to Hershey, those savings would remain the same but the team could choose to suspend him without pay for as long as he sits out. The two sides could also try to negotiate a mutual contract termination although Kuznetsov would miss out on his remaining salary if they go that route.
However, if Kuznetsov’s true intentions are to play elsewhere immediately, that option could be deemed best. His KHL rights are held by SKA Saint Petersburg after they acquired them from Traktor Chelyabinsk in 2017. SKA is currently participating in the first round of the KHL playoffs. That option would get the Capitals off the hook for the rest of Kuznetsov’s contract and could get Kuznetsov right back on the ice.
MacLellan stated multiple times that Kuznetsov and his agents are seeking a new home. “I mean, he’s looking for a change of scenery,” MacLellan said. “I think we have a history here that’s gone on for a while, and I think it’s frustrating on both sides. It’s just an opportunity for our side, too, to start fresh and try to get him an opportunity to continue his career.”
The next best option for the Capitals would be finding a trade for Kuznetsov which they have been unable to do previously despite shopping him around the league at different points over the past year. MacLellan remarked that the team would be open to retaining salary on Kuznetsov’s deal to facilitate a move elsewhere.
“We’ve had history together, and an opportunity for him to have fresh start, I think, is the main theme of what we’re trying to accomplish,” MacLellan said. “I think we’re open to anything that gives him an opportunity to continue his career the way he wants to continue it.”
If the Capitals were to retain Kuznetsov’s salary at the full 50 percent they are allowed to in any trade, the Russian’s cap hit on their books would be just $3.9 million for the rest of this season and all of next year. A third team could also get involved if the price is right to shave off an additional percentage which could further intrigue buyers looking to lower the risk of taking a chance on Kuznetsov.
The final option would be buying out the remaining year of Kuznetsov’s contract this summer. MacLellan was asked about the possibility of that on Saturday.
“We’ll cross that bridge when we get there,” MacLellan said. “Right now, we have a trade deadline on Friday so we’re looking to see if we can make something happen before then and then go from there.”
Buying out that final year would keep Kuznetsov on the team’s salary cap through the 2025-26 season. He’d cost $3.8 million against the cap next season and then $2 million against the cap during the 2025-26 campaign.
As things currently stand, the Capitals have just over $9.5 million in cap space before Kuznetsov’s cap hit is back on the books. The majority of that comes from Nicklas Backstrom’s $9.2 million cap hit being on long-term injured reserve.
