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The Terry Pegula effect: Sabres sign Christian Ehrhoff to 10-year, $40M deal

Jun 30, 2011, 6:53 PM EST

Christian Ehrhoff AP

Apparently Christian Ehrhoff received some good feedback about Buffalo, because it looks like he will play hockey there for a long time.

The Associated Press reports that the hard-shooting German defenseman signed a mammoth 10-year, $40 million contract with the Buffalo Sabres today. This signing comes after they shipped their 2012 fourth round pick to the New York Islanders for his exclusive negotiating rights.

Note: See the bottom of this post for a detailed breakdown of the structure of his new deal.

Instant analysis of the contract

Let’s make no mistake about it: this is a monster deal, especially from the perspective of term. Ehrhoff will turn 29 on July 6, so this early birthday present of a contract will probably cover the rest (or at least most) of his remaining playing days. Honestly, it’s difficult to avoid feeling a little anxious about giving any player a deal for such a long time in a violent sport like hockey, especially when he’s halfway through his career. Calling this deal risky is an understatement.

The greatest perk of these decade-long contracts is how much they dilute a player’s salary cap hit, though. Only Ehrhoff’s sternest critics would deny that $4 million is a bargain for a defenseman who just produced a 50-point season and scored at least 40 points in two other campaigns. Ehrhoff averaged just a second less than 24 minutes per game on the juggernaut Vancouver Canucks team, so his big picture value should be obvious even if he remains flawed in a few areas. Some people might debate this point, but his skill set and resume probably would have made him the top target among unrestricted free agent defensemen if he got that far.

The impact of adding Ehrhoff and Regehr

Interestingly enough, both of the Sabres’ new defensemen will register $4 million per year salary cap hits and were acquired in part because of trades. Buffalo added Robyn Regehr and his $4.02 million cap hit (which expires after the 2012-13 season) via a trade with the Calgary Flames and traded for Ehrhoff’s negotiating rights to get this deal done. The two defensemen add opposing elements to a Sabres defense that was very lacking in 2010-11; Regehr is a rugged, stay-at-home defenseman while Ehrhoff’s game is geared more toward puck movement and scoring points.

With Regehr and Ehrhoff primed to take top pairing (or at least top four) roles going forward, 2009-10 Calder Trophy winner Tyler Myers can assume a more comfortable position with the team. Some said that Myers suffered a “sophomore slump” after that great rookie campaign, yet if you ask me, the Sabres stretched super-tall defenseman too thin. Now he can grow into his role as the team’s blueliner of the future (with Ehrhoff, apparently).

Conclusions

There’s a chance that this signing might remove Buffalo as a dark horse candidate in the Brad Richards sweepstakes. Adding Ehrhoff’s expected $4 million cap hit brings the Sabres’ cap space to about $7 million and they need to fill 3-6 roster spots.

That being said, if the opportunity comes along, it wouldn’t be shocking if the Sabres made another bold move or two. It’s clear that Pegula is willing to spend big – and take some risks – to make the team better. We’ll see if their gambles pay off next season … and in the case of Ehrhoff, maybe for the nine seasons that follow as well.

The year-by-year structure of the deal

TSN’s Bob McKenzie provided a breakdown of the year-by-year structure of the deal. I altered it slightly to make it easy to read.

Year 1: $8 million signing bonus, $2 million salary
Year 2: $5M signing bonus, $3M salary
Year 3: $4M
Year 4: $4M
Year 5: $4M
Year 6: $4M
Year 7: $3M
Year 8: $1M
Year 9: $1M
Year 10: $1M
*McKenzie notes that the deal will have a “modified” no-movement clause.

As you can see, the contract is front-loaded as expected. The Sabres might be able to trade him (if they can get around the clause) to a poorer NHL team between years 7-10 because his low salary and $4 million cap hit would help them reach the salary cap floor. Of course, there’s the other alternative: Ehrhoff might retire before his contract expires, which would make his cap hit go away under the current Collective Bargaining Agreement.

  1. TestSubjekt - Jun 30, 2011 at 7:35 PM

    PEGULAAAAAA!!!

    I can’t wait to see what tomorrow brings.

  2. tlndma - Jun 30, 2011 at 10:07 PM

    Hey Buff fans, go back to game six vs Boston and watch Ehrhoff dig a hole in ice when confronted by Adam McQuaid…LOL….I like Regeher though.

  3. skoobyfl - Jun 30, 2011 at 10:14 PM

    Pegula is a true has more money than any NHL owner & he generates mega-cash every year on an energy income (which is likely to rise, alot). The old owner was more worried about his paychex versus how his team was doing, so let’s call him a working class owner.

    I’d plan on the Sabres being competitive for all the best for a long time.

  4. warpstonebc - Jul 1, 2011 at 12:12 AM

    Good for Buffalo. Though I’m a bit stunned Erhoff didn’t wait just one more day to play teams off each other. It’s interesting that hockey is one of the few sports where trading players rights before a deadline can pay off. You never see this in other major sports.

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