We have written about the Los Angeles Kings’ attempt to terminate former Flyer captain Mike Richards’ hefty contract (here and here, specifically). Richards and the NHLPA responded by filing a grievance, for which the arbitration hearing hasn’t been set.
According to TSN’s Bob McKenzie, the two sides are trying to negotiate a settlement and are “getting closer.” The reasoning behind these talks seems to be, above all else, risk management from both parties. Let Uncle Bob explain:
A negotiated settlement makes sense for both parties. If it goes to arbitration, the arbitrator would rule in favor of one party or the other. So the Kings would either be free and clear of Richards' contract or they would be fully on the hook for the balance of the deal. Likewise, Richards would end up with either nothing or everything he's owed. So there's considerable risk for both sides in an arbitration.
Stemming from an incident in June, Richards was charged with illegal possession of a controlled substance while crossing over the United States-Canada border. As the 30-year-old center deals with any legal ramifications, the NHL admitted that cocaine use has increased among its players as of late (Todd Fedoruk talked yesterday about the subject).
On the ice, the rest of the league will monitor how a settlement affects the Kings’ salary cap with great interest. More McKenzie:
If a settlement is reached, there's no word yet on what salary cap penalties the Kings would still face. There's bound to be something, but not likely as onerous as the full value of Richards' contract, which carries with it a cap hit of $5.75 million. If there's a settlement, Richards would undoubtedly become a free agent though there's no telling at this point what monies he would be entitled to from the Kings in a settlement.
Follow Rich on Twitter: @rich_hofmann