The Philadelphia Flyers announced this past Tuesday that they have placed Ryan Johansen on unconditional waivers for the purpose of terminating his contract. To justify the decision, the reasoning was a “material breach” of Johansen’s contract, though the team did not provide any more details.
Johansen was acquired by the Flyers from the Colorado Avalanche on March 6th, but never played a game for them, as he reported an injury, and thus, the Flyers were not able to assign him to the AHL’s Lehigh Valley Phantoms.
“Ryan Johansen has a severe hockey injury that requires extensive surgery which has been scheduled,” said Johansen’s agent, Kurt Overhardt, in a statement released by his agency, KO Sports Inc. “Since being traded to the Philadelphia Flyers, Ryan has worked in good faith with the Club, its medical staff, and authorized third party physicians. The Flyers’ attempt to terminate Ryan’s contract is disappointing. We have been in contact with the NHLPA and will defend Ryan and protect his rights.”
Johansen Plans to File a Grievance
Now that Johansen has cleared waivers, the implication with the contract termination is that the Flyers are accusing Johansen of exaggerating or even faking a hip injury that he allegedly had since March. If Johansen is refusing to report to the team, that means the Flyers believe they have the right to terminate the contract.
Morally speaking, when two sides agree to a contract and one side breaches the contract, the other party is entitled to terminate the contract. However, there are risks attached to contract termination, because if one side were to terminate the contract, refusing to act in accordance with the contract because they believe the violating party breached the contract, but later was found that the party being accused of breaching the contract did not do any wrongdoing, the accused party could, in turn, file a grievance against the other party for wrongful termination of the contract.
Johansen has 60 days retroactive to the termination of the contract to decide whether or not to file a grievance over the contract termination with the NHLPA, per The Athletic, where it’s reported “he’s likely to do so.” In the event the Flyers are found in the wrong, they will be held liable for their wrongful termination of Johansen’s contract.
Johansen’s Contract Situation
Contracts & Injuries
The Collective Bargaining Agreement—abbreviated as the CBA—does provide for this exact scenario. A Standard Player’s Contract, or SPC, ensures a player has protected rights while playing in the NHL. Paragraph 2(a) says that the player agrees “to report to his Club’s Training Camp at the time and place fixed by the Club, in good physical condition,” and “to conduct himself on and off the rink according to the highest standards of honest, morality, fair play, and sportsmanship.”
In Paragraph 5 of the CBA, which mentions about when a player is “disabled or unable to perform his duties under the SPC,” it provides sub-paragraphs (a) through (o), which applies to this exact scenario.
Paragraph 5(a) reads, “Should the Player be disabled or unable to perform his duties under this SPC he shall submit himself for medical examination and treatment by a physician selected by the Club.” This paragraph highlights when a player is injured and needs to take time off. The following paragraphs after that highlight medical fees, the rights of the team if a player is not able to play, and the financial compensation in the event the player is injured.
Second Opinions and Contract Breaches
Paragraph 5(e) reads, “In the event that the Player wishes to seek a second opinion in respect of the Club’s Physician’s determination regarding the Player’s fitness or unfitness to play, the Player shall provide electronic notice to the Club.” This paragraph notes that a player might disagree with the team doctor to his fitness. In that case, the player is entitled to a second opinion from his doctor, and the player’s doctor will determine as to whether or not the player is fit to play. All examinations are followed by extensive medical records, and the CBA requires that each doctor record his/her findings in a form provided that the CBA provides.
If the team’s doctor and the player’s doctor agree that the player is injured and is not able to play, the determination is “conclusive, final, and binding.” However, there is the possibility that the team’s doctor and player’s doctor disagree. When such a case arises, Paragraph 5(g)(iv) says that “they shall confer and agree on an independent physician to examine the Player,” where the independent doctor will conduct their own findings, and this determination in turn becomes the final verdict, regardless of what was said by the team’s doctor or the player’s doctor.
Paragraph 5(n) then denotes, “If the Player is declared fit for plays, by the Club Physician and the Player’s Physician, or by the independent doctor, he must perform his duties hereunder and shall be entitled to receive the full benefits of this Agreement.” Those duties are to report to the team’s official practices and can only play for the team that he is on unless he has been reassigned to one of the team’s minor league affiliates or the contract is terminated.
The failure in performing one or more of the official duties is considered a breach of the contract, otherwise known as a “material breach,” as mentioned in Paragraph 14: “The Club may also terminate this SPC upon written notice to the Player (but only after obtaining Waivers from all other Clubs) if the Player shall at any time: (a) fail, refuse, or neglect to obey the Club’s rules governing training and conduct of Players, if such failure, refusal or neglect should constitute a material breach of this SPC; or (b) fail, refuse or neglect to render his services hereunder or in any other manner materially breach this SPC.”
Johansen’s Injury and Medical Evaluations
It should be noted that two weeks after the trade, Flyers general manager Daniel Brière said that Johansen was in the process of rehabbing his hip injury, and the news came as a surprise considering he played a game with the Avalanche two days before the trade. During Brière’s season-ending news conference, he added that he didn’t expect Johansen to be back, and Johansen didn’t think he’d be able to play.
However, given the Flyers are implied to essentially be accusing Johansen of faking or exaggerating an injury with this contract termination, it should be assumed that they have the right to do so. This process takes into account a series of medical evaluations. It could be assumed that Johansen was not happy with last season, and that the assumed injury impacted his overall performance on the ice. It can also be assumed that he received a second opinion from a doctor of his choice (the player’s doctor), who likely disagreed with the team’s doctor.
By then, it was possibly recommended that Johansen should seek surgery, but this is where it gets complicated. The SPC says that in such a case, a third, independent doctor has to be consulted, and this is where things can go in either direction on whether or not he was deemed fit to play. Either way, if the Flyers did not acknowledge these steps, they undermined Johansen’s rights and made a wrongful attempt to terminate his contract. If Johansen’s grievance proves successful, they will be hit with a cap charge.
Salary Cap Implications
Whether or not the Flyers were to be hit with a cap charge, his contract termination will have a benefit to the Nashville Predators, the team he signed an 8-year, $64 million contract with before the 2018 season. They retained 50% of his initial $8 million cap hit when they traded him to the Avalanche last summer, and their $4 million cap penalty for the retention will be erased off the books, much like how the Washington Capitals had their $3.9 million cap charge erased when the Carolina Hurricanes waived Evgeny Kuznetsov for the purpose of mutual contract termination.
Next season was supposed to be Johansen’s final year of his contract. However, he has struggled with inconsistency in the latter stages of his career, and Nashville got out of his deal after the 2023 season that saw him regress to 12 goals and 28 points.
Though the Avalanche stepped in with the goal of revitalizing him in an effort to fill in their second line center hole, he was less effective with them, with his 0.37 points per game being his worst output since his first two seasons in the NHL, when he was a member of the Columbus Blue Jackets. While he won 53.1% of his faceoffs, Colorado knew that he wasn’t the answer they were looking for when they traded for him, and the alleged hip injury may be the reason why. However, Sportsnet’s Elliotte Friedman noted that the delay in reporting it is the source of the material breach that the Flyers argued.
Johansen is now a free agent, and while he’ll technically be able to sign with any team, he won’t be able to until he passes a physical. And given the Flyers are confident Johansen is able to play, the decision they made showed their patience has been tested enough. Their expectations are that Johansen finds another team to play for, though not before a period of time where both parties will exchange files and opinions regarding his fitness, where an independent arbitrator will gather the information and make a decision within thirty days after the hearing.
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