After failing to make the Stanley Cup Playoffs for the first time in 15 years, the Washington Capitals moved on from general manager David Pile and head coach Jim Schoenfeld. Following an extensive search, the Capitals hired George McPhee as general manager, and Ron Wilson as head coach. The new duo for the Capitals got to work to prepare for the 1997-98 NHL season.

Focusing on Oates
As the new Washington Capitals general manager George McPhee failed to come to terms with forward Rick Tocchet on a new contract, he shifted his focus to forward Adam Oates. Oates, who was promised by team president Dick Patrick in March to renegotiate his contract, had his agent impose a deadline after claiming the team reneged on its promise. “The situation we are being offered has changed dramatically since March,” said Oates’ agent Brian Cook after speaking with McPhee. “We’re giving them until Wednesday [June 25th, 1997] at 5 p.m. to rethink their decision, or Adam will not be playing for the Washington Capitals again.”
McPhee, at the time, was in New York for the NHL’s Board of Governors meetings, but said to reporters he would not be held to any deadlines while bargaining. “I have discussed the whole issue with [owner Abe Pollin], Mr. Patrick, and David Poile. They are all in agreement that they agreed to revisit the situation in the summer, but there were no promises on specifics and no numbers floated. Look, this is the fun and games of negotiating. I personally don’t believe in ultimatums – players putting a gun to the team’s head.”

Cook would not specify what Oates would do if a deal was not reached. With two remaining years on a contract that would pay him $2.15 million a year, his options were limited. One option for Oates would be to hold out when the season began in October. Another would be for him to request a trade, and a stickier option would be to ask the league to have his contract voided. For the league doing so was highly unlikely.
When acquired on March 1st, 1997, Oates held out over this issue and missed one game before meeting with Cook, Poile, and Patrick to discuss his contract. While with the Boston Bruins, Oates negotiated his contract at the time to make sure his former teammate, Ray Bourque, who was the team captain, would have the highest salary on the Bruins. Now that Oates was no longer with Boston, he wanted a new salary.
Agent Turning Up the Heat
On June 25th, 1997, Cook claimed the Capitals reneged on their agreement from March 3rd. “I think because of all the recent activity relating to the Capitals’ front office and coaching staff, there has been some confusion as to what was and was not agreed to,” Cook said. “In March, the Capitals coach management and ownership met with us and reviewed our proposal of what it would take for Adam to end his holdout. It was our position then and it is our proposition now that the Capitals agreed to those terms.
“Our feeling is that a deal was completed in the Capitals’ office before he put his jersey on,” Cook continued, “Would Adam really have given that leverage up if he didn’t think we had an understanding on a deal?” Cook went on, “I would like to give the Capitals the opportunity to refresh their memories by presenting them with all the materials related to that commitment. If they choose to honor it, then Adam looks forward to playing for the Capitals at the new MCI Center. Adam sacrificed himself for the good of the team, he could have just held out for another few games. I’m hoping the Capitals will remember that. I’d like to give them the benefit of the doubt.”

Following a week of accusations and threats, the Capitals and Oates’ agent met face-to-face. “We had some lengthy discussions that I think went well, and we’ll continue to talk until we have a deal or we don’t,” McPhee said. “We made some progress, but there are some elements that we still have to discuss, and I don’t know if those are going to be deal breakers for either side or not. We’re both going to have to go back and talk it over.”
“My goal was to get us as close to what Adam believed we had agreed in March,” Cook said. “I have to take a closer look at what we talked about before I can really tell, though. We threw a lot of things out there. It was a creative session. We’re close on the terms, now we have to figure [out] what he’s worth. I do think there is a recognition by the Capitals that Adam is worth more than he is getting paid now.”
Hitting a Roadblock
On July 24th, 1997, talks between the Capitals and Oates’ camp hit a standstill. “The deal should have been done,” said Cook. “I left a message today saying that I’m done talking to them. We’ll be talking after the first game of the season, and that’s the next time we’re talking to them.” McPhee on the other hand felt differently. “I don’t think we’re that far apart. “I would expect that [a deal] would be done sometime in September or October. I’ve been negotiating for several years now, and I don’t get too worried in the middle of summer. This is when we’re supposed to enjoy life a little bit.”

On July 29th, 1997, the Capitals offered Oates a 3-year deal with a slightly less than $3 million a year salary, but would top $3 million annually if Oates met certain bonus clauses. This was close to what Oates and his agent wanted back in March, but per Cook, Oates soured over the deal with the Capitals due to the weeks of public disagreements. Cook also notes that Oates retained a Washington litigation firm, Miller & Chevalier, to review the documents and to help them evaluate their next move. “What they have done proves that players are just better off holding out, because when you take people at their word and a a handshake, you get burned,” Cook offered. “It’s nice that they are trying to take the high road right now, but what they have not accepted is that Adam will not be in a Capitals uniform at the season opener. He’ll retire before he plays for the Washington Capitals again.”
Capitals team president Dick Patrick, who up until then had refrained from commenting publicly throughout the process, denied Cook’s claim. “I’ve seen him say those things but it’s not the case. [On Monday] we were getting ready to fax them another proposal, and later we got a call [from Cook] saying not to bother, [Oates] wants to be traded. I’d really like to see Adam play for Washington. I really like Adam Oates, and I think we’ve acted completely honorably.”
Turning a Corner
On August 6th, 1997, things took a positive turn with Oates, who had not spoken publicly during the renegotiation process, when he let people know he was signing a new contract with the Capitals. The change of heart for Oates came after a series of conversations he had over the previous few days with McPhee and Capitals owner Abe Pollin. Speaking of his relationship with the Capitals, Oates said, “I think we’re back square. I think it’ll be done soon, in the next few days. That’s what I’m hoping and that’s what I think. I’m looking forward to coming in and getting a place [to live]. I want to be there at the start of training camp and get to work.”

However, McPhee presented a more cautious response regarding the contract talks. “I don’t know if [a new contract] will happen in a few days or in September, but at least now there are no impediments,” he said. “Negotiations are never easy. Sometimes they’re close and it all slips away, sometimes you’ve lost all hope and it comes back to you.”
One thing that did create sour feelings was the Capitals pursuit of free agent forward Mark Messier.
Oates stated, “Going after Messier may have been a great business move for the team, but where does that leave me? I felt, oh, now I know why the Capitals haven’t been so eager to sign me even though they made promises in March – they just wanted to get Mark Messier so they could trade Adam Oates. I felt like, if you want to move me, just move me and get it over with. But I talked to Abe [earlier this week] and he said that wasn’t the case. It was just a lack of communication. And after we cleared that up, talking to Abe was great. I mean, how many owners talk to the players?”
Oates continued, “I really don’t think it’s going to be a problem. We’ve had some miscommunications in a couple of areas, some ours, some theirs. But I’ve talked to [Pollin and McPhee], and I think we’ll be able to work it out.”
Getting Oates Locked In
On Friday, August 14th, 1997, reports came out that the Capitals and Oates were close to signing a new contract, and it could be signed by the following Tuesday. When Tuesday, August 18th, 1997 came around, reports noted both sides agreed to the terms. Oates agreed to a 3-year deal worth $3 million per year, which came with the option for a fourth year. “We’ve agreed on terms, now it’s drafting the thing that can be difficult,” McPhee said. “The agent has to sign off on it [today] by fax, then we’ll courier the original contract to the player. He’ll sign six copies and send them back to us to sign.”
With Oates taken care of, fellow Capitals forward, Peter Bondra, was also looking to renegotiate his contract, and fears of Bondra’s new deal prompted Oates to want to renegotiate again. However, Oates’ agent put water on that. “Adam’s reviewed the contract and it matches what we’d discussed,” said Cook. “There’s no reason he’d want to renegotiate after this. There was a number we thought was the right number, and we got to the right number and we’re done.”
On August 21st, 1997, the Capitals announced they sent the contract to Oates for signature. On August 22nd, 1997, Oates signed the contract to end the months-long negotiations
To learn about the Capitals first training camp under the new regime, stay tuned for Chapter 3 – Training Camp.

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RESOURCES
- Alexander, Rachel. “Oates’s Agent Sounds Ultimatum,” June 24, 1997. https://www.washingtonpost.com/archive/sports/1997/06/24/oatess-agent-sounds-ultimatum/0229baa7-c97d-4dfc-8d50-c064db160aea/.
- Alexander, Rachel. “Oates’s Agent Says Capitals Reneged on Agreement,” June 26, 1997. https://www.washingtonpost.com/archive/sports/1997/06/26/oatess-agent-says-capitals-reneged-on-agreement/f270f6ff-96ab-4348-b74a-73b582dae164/.
- Alexander, Rachel. “Oates’s Agent, Capitals Resume Negotiations,” July 3, 1997. https://www.washingtonpost.com/archive/sports/1997/07/03/oatess-agent-capitals-resume-negotiations/c089721c-2033-4b42-993c-ad84a26c4d43/.
- Alexander, Rachel. “Oates Breaks Off Talks With Capitals,” July 25, 1997. https://www.washingtonpost.com/archive/sports/1997/07/25/oates-breaks-off-talks-with-capitals/7459d2d6-86e2-4340-87d9-0034516077f7/.
- Alexander, Rachel. “Caps Make New Offer To Oates,” July 30, 1997. https://www.washingtonpost.com/archive/sports/1997/07/30/caps-make-new-offer-to-oates/fe41fb4b-e0f5-4000-846f-d7751db4af5e/.
- Alexander, Rachel. “Oates Says He, Capitals Close to Deal,” August 7, 1997. https://www.washingtonpost.com/archive/sports/1997/08/07/oates-says-he-capitals-close-to-deal/3c80f25d-a704-474b-96d6-e94f2322cf11/.
- Alexander, Rachel. “Capitals, Oates May Sign New Contract Tuesday,” August 15, 1997. https://www.washingtonpost.com/archive/sports/1997/08/15/capitals-oates-may-sign-new-contract-tuesday/29f9a3ee-580a-462d-aec8-4ed0614ec898/.
- Alexander, Rachel. “Capitals, Oates Come To Terms,” August 19, 1997. https://www.washingtonpost.com/archive/sports/1997/08/19/capitals-oates-come-to-terms/48621cc8-2c5b-43db-83cc-e45c98e0fe12/.
- Alexander, Rachel. “Oates’s Contract Sent,” August 22, 1997. https://www.washingtonpost.com/archive/sports/1997/08/22/oatess-contract-sent/d03684bf-618d-4055-9d64-e2152f0732f5/.
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