The Edmonton Oilers on Friday retained a key young member of their blueline corps, re-signing defenseman Tom Gilbert to a six-year contract believed worth around $24 million, or approximately $4 million per season against the Oilers cap.
Gilbert, 25, had a breakthrough performance with the Oilers in 2007-08, with 13 goals and 33 points in 82 games to lead all Oilers defensemen. His development may have been hastened this season by injuries to veterans Sheldon Souray and Joni Pitkanen.
Oilers general manager Kevin Lowe had to move quickly to re-sign Gilbert, as he was slated to become a restricted free agent on July 1st, which would’ve made him eligible to receive an offer sheet from a rival team.
Given Lowe’s much publicized offer sheets made last summer to Buffalo’s Thomas Vanek and Anaheim’s Dustin Penner, the latter of which proved a successful move by Lowe, it’s a good bet a rival club would’ve made Gilbert a target for an offer sheet.
This move will likely arouse criticism from some that Lowe overpaid to retain a second-year player who had one good season, but given the offer sheet possibility it was one he had to make, rather than risk allowing a rival club to set Gilbert’s market price.
It could also prove to be a worthwhile long-term investment for the Oilers. Gilbert meshed well with the crop of rising young players who were primarily responsible for the club’s impressive – but ultimately futile – late season stretch run, saving what otherwise would’ve been considered another wasted year for the Oilers.
Lowe is betting that Gilbert has now established himself as the team’s top defenseman, and at 25 has yet to hit his prime, meaning this new $4 million per season salary could prove to be a bargain over the next six seasons.
Gilbert’s new salary will now push the Oilers payroll for next season to over $37 million invested in 14 players.
With incoming owner Darryl Katz promising to keep pace with the league’s salary cap, expected to rise as high as $56 million for 2008-09, Lowe could have almost $20 million in available cap space to work with this summer.
Don’t expect Lowe to go on another free agent shopping spree, as he recently told the Edmonton media he intends to invest for the most part in his young stars.
Other free agents Lowe has to consider re-signing includes RFAs Jarret Stoll, Robert Nilsson, Zack Stortini, Denis Grebeshkov and Joni Pitkanen.
Of these, Pitkanen could prove the hardest to retain. Acquired from the Philadelphia Flyers last summer in a multi-player trade, the injury-prone Pitkanen saw action in 63 games this season, putting up 26 points.
Rumors out of Edmonton claim Pitkanen could be seeking a significant raise this summer, possibly well over $5 million per season, to re-sign with the Oilers.
Lowe has plenty of cap space if he wants to re-sign Pitkanen, but it’s doubtful he’ll commit to a long-term deal for that much to a defenseman with his injury issues.
Indeed, Gilbert’s new contract suggests that Pitkanen might no longer be part of the Oilers future, as Lowe might be more willing to put his faith in Gilbert, Grebeshkov, Ladislav Smid and a hopefully healthy veteran in Sheldon Souray next season.
Lowe could pass on Pitkanen and pursue an experienced defenseman via the UFA market or perhaps with another offer sheet foray.
Good signing by the Edmonton Oilers, and well within the market rate established by Matt Carle among others. Nice term on Gilbert too, provided that Jody Shelley doesn't lay him out again with an elbow to the head.
Frankly, I'm much happier to see the club spending money on appreciating assets in their early to mid-20s than on declining assets in their early to mid-30s.
The Oilers now have $40.8 million committed to 16 active roster players. There's another eight regulars to re-sign with cumulative 2007-08 salary costs of $10.07 million. Assuming the salary cap goes to $55 million, that leaves Kevin Lowe with a spread of roughly $4.5 million to provide raises. (And we can bump that to $6 million if we assume the Oilers won't re-up Geoff Sanderson at $1.5 million.)
So, if we correctly predict Sanderson is out of the mix, the seven players left for the Oilers to re-sign are Pitkanen, Stoll, Nilsson, Grebeshkov, Reasoner, Stortini and Glencross. All should be do-able within the $16 million in cap room. And there is plenty of young, cheap talent on the farm if the Oilers choose to move Torres over the summer, so they might be able to save a few more dollars.
Things are definitely looking up in Mudville!
Last edited by Matt_McCallum on April 11th at 5:22 PM.
I'm glad to hear about this signing. If Pitkanin is offered 5 mill a season from another team isn't that enough for 3 first rounders? Even if he was stolen for a first, second and third rounder I think it would rock for Edmonton. We've got some great young talent, but Edmonton can afford to give him up as long as their d-men stay healthy this year. More draft picks for Edmonton will mean more choices down the line... and if the scouting team does their homework it'll work out great for the Oilers.
Page 38 of the CBA sets the thresholds and compensation for RFAs. Computing the inflation factor (assuming the average salary has increased by 10 percent for the second year in a row), here's the current scale effective July 1, 2008:
Over $798,600 to $1,210,000 - 3rd round pick
Over $1,210,000 to $2,420,000 - 2nd round pick
Over $2,420,000 to $3,630,000 - 1st and 3rd round picks
Over $3,630,000 to $4,840,000 - 1st, 2nd and 3rd round picks
Over $4,840,000 to $6,050,000 - Two 1st rounds, plus 2nd and 3rd round picks
So let's say someone offers 5 mill a season matt... don't you think Lowe would be nuts to match it? Assuming our defense men stay healthy next year... you'd think Lowe would be insane to say no to those picks. Who needs defense men? Panthers, Lightning, Senators come to mind first.
Imagine the lighting stealing pitkanin, having a horrible season, and giving up 2 top 5 first rounders. *drools*
Joni Pitkanen played for $2.4 million last year. With the dollars that Kevin Lowe has available, the other players we want to re-sign and my estimation of Pitkanen's market value (which may or may not match reality), I think the salary ceiling for him is in the $4 million range for three years.
Now, I like Pitkanen and was excited when the Oilers traded for him last year, but he's not an "at-any-price" player. Depending on the term, if somebody offers him $5 million a year, it's likely best to take the draft picks and run. Then again, if that team is Detroit and those first rounders are going to be 30th overall, you might be better off to match.
I need to run through the cap room and needs of the other teams, but I just don't see Tampa or Florida offering up that kind of scratch for Joni. Personnel-wise he'd be a good fit with the Rangers but I don't think they've got the budget to take him on. (Nor do I think Sather would attempt an RFA signing. I'm certain he and Lowe would work out a deal for Pitkanen's rights.)
But you bring up Ottawa, and that's an interesting possibility on the RFA-signing front. They have cap issues, but Wade Redden is coming off the books, so there might be some dollars available (especially if they can move one of the goalies). And unless they make a dramatic comeback against the Penguins, that's a team likely needing to make a bold statement in the off-season for a demanding fan base.
Last edited by Matt_McCallum on April 16th at 4:05 PM.
I'm Lyle Richardson, also known as Spector, Foxsports.com 's "Prince of Pucks".,which is based on the fact I live in Prince Edward Island, Canada and I couldn't think of a better byline. I've been an NHL hockey commentator since 1998 on my website, Spector's Hockey, and I'm a contributing writer for Foxsports.com , The Hockey News and Eishockey News. I'm also a regular on The Faceoff Hockey Show and a frequent guest on "The Late Crew" on The Team 1200 Ottawa.
