Tackling No-Trade and No-Movement Clauses in the NHL

What are the differences between no-movement and no-trade clauses, and how do these contractual provisions impact the National Hockey League (NHL)?

No-Trade Clause (NTC)

A no-trade clause means a player “cannot be traded, unless he chooses to waive the clause.”[i] To make this provision more team-friendly, some general managers will sign players to modified no-trade clauses (M-NTCs), which vary across the league.

Typically, players with an M-NTC “submit a pre-determined number of teams they will accept a trade to if they are asked.”[ii] However, in some cases, the clause may work in reverse, requiring the player to “submit a pre-determined number of teams they will not accept a trade to if they are asked.”[iii] Players, and their agents, must provide a list before a specific deadline agreed upon in the contract. If a player “does not submit a list of teams in the specified time frame” then that player “can be traded anywhere.”[iv]

The no-trade clause is different than the no-movement clause in that a player could be “placed on waivers, re-assigned to the AHL, or have his contract bought out.”[v] Players with a full NTC must approve any trade, unlike the M-NTC where the player has a list of teams they would or would not be traded to.

Once signed, a no-trade clause remains in effect for the duration of the contract unless the player agrees to waive it.[vi]

No-Movement Clause (NMC)

The major difference between a NMC and a NTC is that a plyer with an NMC “cannot be traded, waived, or sent to the minor-leagues without his consent.”[vii] In contrast, an NTC only “prevents trades”, meaning teams can still place a “player on waivers, send them to the minors, or buy out their contract” without requiring approval.[viii]

Eligibility For Provisions

To be eligible for an NTC or an NMC, a player must have either played in the NHL for at least “seven seasons or is over 27 years of age, whichever comes first.”[ix] Additionally, “if a player is traded before a NTC or NMC starts, the clause is removed unless the acquiring team agrees to keep it.”[x] However, if a player waives their NTC or NMC, to facilitate a trade, the clause will “remain in effect” when they join their new team.[xi]

Alternatively, agents must be extremely careful when representing players with an NTC. It is the agent’s responsibility to ensure that the list of teams the player would or would not accept a trade “are filed on the schedule laid out in each individual contract.”[xii] If the agent fails to adhere to the deadline, this could result in the player losing control over their trade destination.

On the other hand, agents have less of a burden when it comes to NMC’s since these clauses provide broader protection, preventing the player from “trades, minor-league assignments, etc.”[xiii]

Some general managers are more willing to offer NTCs and NMCs than others, depending on various factors. As Edmonton Oilers General Manager Ken Holland explained, “all 32 cities aren’t all the same in terms of living” and “it depends where your team is in the standings.”[xiv] These considerations, along with salary cap implications, team strategy, and the player’s personal situation all play a role in determining whether a player should have an NTC or NMC in their next contract.[xv]

[i] https://www.dkpittsburghsports.com/2021/08/17/penguins-malkin-kessel-no-trade-clause-tlh

[ii] Id.

[iii] Id.

[iv]Id.

[v] Id.

[vi]Id.

[vii] Id.

[viii]Id.

[ix] Id.

[x] https://puckpedia.com/salary-cap/no-trademovement-clauses

[xi] Id.

[xii] https://www.nytimes.com/athletic/5317255/2024/03/06/nhl-no-movement-trade-clauses-deadline/