Hartnett: There's Time For Rangers, Stepan To Avoid Arbitration Unpleasantness

By Sean Hartnett
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As the hours tick closer to Monday's scheduled 9 a.m. arbitration hearing, Derek Stepan and the Rangers have much work in front of them if they are to avoid a meeting with an independent third party in Toronto.

Buffalo handing 24-year-old center Ryan O'Reilly a mammoth seven-year, $52.5 million extension set the bar high for the Stepan camp. But the perennially contending Rangers do not share the Sabres' desperate traits or the salary-cap space to accommodate such a deal.

Although the $7.5 million annual average contract signed by O'Reilly serves as a comparable in pre-arbitration negotiations, it is not admissible in arbitration. On the other hand, O'Reilly's current deal paying him $6.2 million this season can be used as a comparable should the sides enter arbitration.

To avoid the nastiness of arbitration, there's going to need to be some giveback from Stepan. If the 25-year-old center wishes to call Madison Square Garden home for years to come, he will accept less than what he could earn two years down the line in free agency. Stepan and agent Matthew Oates know they can chase after maximum dollars and terms should Stepan become an unrestricted free agent in the summer of 2017.

As a blossoming two-way center, Stepan has every right to explore 2017 free agency and have teams competing to sign him to a megadeal at the prime age of 27. It's all about what Stepan wants. If his No. 1 desire is to remain with a winner, he will scale back his demands and commit his long-term future to the Rangers.

Late agreements to avoid arbitration can come together very quickly. Back in July 2011, former Blueshirts captain Ryan Callahan and agent Steve Bartlett were able to hammer out a contract extension with the Rangers in the 11th hour. Bartlett got the ball rolling with Jeff Gorton, who at that point served as the club's assistant general manager.

Now having the final say as former GM Glen Sather's replacement, Gorton's difficult task is getting Stepan to tie his long-term future to the Rangers' crest. A larger-than-expected arbitration awarding would be damaging to the Rangers, as it would place tremendous pressure on their delicate cap situation and have Stepan eyeing a big payday in 2017 unrestricted free agency.

With the threat of arbitration hovering, both sides must present their proposed salary figure by Saturday. Since this is player-elected arbitration, Gorton must decide whether a one-year or two-year term is better for the Rangers – basically, whichever term yields a greater trade value.

Should a hearing take place on Monday, both sides will have 90 minutes allocated toward presenting their case and a rebuttal. If a new comparable player contract or a substantive issue is introduced, the side making a rebuttal can request an additional 10 minutes to address these new issues. Once the hearing concludes, the arbitrator must inform both sides of the term, salary and a summary of the decision simultaneously via e-mail. Since this is a player-elected hearing, the Rangers have the right to walk away from the awarding, as the awarding would be above $3,799,887. This would allow Stepan to become an unrestricted free agent.

An interesting new wrinkle will be added to this summer's arbitration cases. Both sides will have the power to use "fancy stats" to support their arguments because the NHL added an advanced statistics section to its website in February.

According to the NHL's collective bargaining agreement, the following evidence is considered admissible:

(A) The overall performance, including National Hockey League official statistics (both offensive and defensive), of the Player in the previous season or seasons;

(B) The number of games played by the Player, his injuries or illnesses during the preceding seasons;

(C) The length of service of the Player in the League and/or with the Club;

(D) The overall contribution of the Player to the competitive success or failure of his Club in the preceding season;

(E) Any special qualities of leadership or public appeal not inconsistent with the fulfillment of his responsibilities as a playing member of his team;

(F) the overall performance in the previous season or seasons of any Player(s) who is alleged to be comparable to the party Player whose salary is in dispute; and

(G) The compensation of any Player(s) who is alleged to be comparable to the party Player, provided, however, that in applying this or any of the above subparagraphs, the Salary Arbitrator shall not consider a Player(s) to be comparable to the party Player unless a party to the salary arbitration has contended that the Player(s) is comparable; nor shall the Salary Arbitrator consider the compensation or performance of a Player(s) unless a party to the salary arbitration has contended that the Player(s) is comparable.

Most cases tend to get settled before arbitration because it gets really, really nasty at these hearings. No player wants to sit and hear his employer attempt to devalue him.

Famously, former 10-year winger and current NHL Network analyst Mike Johnson was described by the Phoenix Coyotes as "the worst forward in the NHL" at a 2003 hearing.  Even more famous is the story of former Islanders GM and current NBC analyst Mike Milbury driving goaltender Tommy Salo to tears by lambasting his conditioning and goaltending ability at a 1997 hearing. Salo reportedly left the room to collect himself after being subjected to Milbury's barbed criticisms.

Stepan and the Rangers still have time to avoid the unpleasantness that could unfold at a Monday hearing.

Follow Sean on Twitter @HartnettHockey.