There are insurance implications
Now, here’s something that might surprise quite a few readers. It certainly surprised me. When players are put on IR or LTIR, teams don’t actually pay their salaries. It’s the team’s and player’s
insurance policies that cover those player salaries.
Look at it this way. When someone is hurt on the job, worker’s compensation takes care of them. The company doesn’t actually pay out those benefits. It’s the worker’s compensation policy that does it.
It’s the same for NHL players. That is why team’s never disclose specifics of player injuries. Insurers want to keep disclosure to a minimum for confidentiality purposes. After all, would you like your neighbors to know your medical records if you were hurt on the job? Most likely, you’d be happy telling your neighbors you had a workplace-related incident and leave it at that.
So, if Landeskog retires, it would become an issue for the NHL, the Colorado Avalanche, and Landeskog with insurance companies. Any sort of issues may arise, including charges on all sides, premium increases, and even potential rifts between teams and insurers.
As you can see, Landeskog retiring would open up a huge can of worms for everyone involved. It’s just better for the Avs to let the insurance pay for Landeskog while he’s on LTIR. In fact, that’s the reason why LTIR exists. Since team’s don’t actually pay player’s salaries while on LTIR, teams can use those funds to pay other players.
Ultimately, it’s a business decision that compels Landeskog and the Avalanche to keep him technically active. It’s the reason why Shea Weber is currently a member of the Utah Hockey Club even though he was deemed unfit to play ever again after the 2021 season.
The easiest path to go would be to keep Landeskog on LTIR until his deal expires in 2029. It wouldn’t cost the Avs a dime, Landeskog gets paid, and the team can use the cap space to help the team.