Wednesday, September 02, 2009

Canucks Re-Sign Luongo to 12 Year $64m Contract

The deal that most assumed was already in the bag finally got done today and it's a big one. 12 years and $64 million dollars ($5.33m cap hit) will keep Roberto Luongo in Vancouver for the remainder of his prime.

The cap hit is a great number for the Canucks, especially for the next 6 to 7 years. The extra million and a half in cap room (compared to other high paid goaltenders) will allow the Canucks some significant flexibility to address other areas such as Ryan Kesler.

The end of the contract will be interesting, nobody really knows what the salary cap or CBA will look like in 10 years. Considering that Martin Brodeur is still going strong at 37, theres a strong possibility that Luongo would still be worth his cap hit in years 8 to 10. That said, if there is still a salary cap in 2020, it would be unlikely that a team would want a $5.33m cap hit on a 40+ year old goaltender. Considering the front loading of cash in this deal, it's likely that Luongo will either be retired or bought out by the time that scenario pops up.

The deal obviously means that Cory Schneider is no longer the future between the pipes. It will be interesting to see how Mike Gillis handles Schneider. When will his value be at its peak? Do you take the risk of adding to his value by giving him some NHL time and hoping he delivers and does not struggle like last year, or do you keep him in Manitoba and try and sell teams on his superb AHL numbers?

It's been a great week for Canuck fans and things are about to get really interesting as camp approaches.