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San Jose Sharks issue one qualifying offer, but it’s not to Ryan Donato

NHL: SJ Sharks retain negotiating rights to Noah Gregor; Ryan Donato can become a UFA on Wednesday

SAN JOSE, CALIFORNIA – MARCH 22: San Jose Sharks’ Ryan Donato (16) celebrates his goal against the Los Angeles Kings in the third period at the SAP Center in San Jose, Calif., on Monday, March 22, 2021. (Nhat V. Meyer/Bay Area News Group)
SAN JOSE, CALIFORNIA – MARCH 22: San Jose Sharks’ Ryan Donato (16) celebrates his goal against the Los Angeles Kings in the third period at the SAP Center in San Jose, Calif., on Monday, March 22, 2021. (Nhat V. Meyer/Bay Area News Group)
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SAN JOSE — Ryan Donato’s time with the Sharks appears to be over and now the team will likely be back in the market for a middle-six forward when NHL free agency begins later this week.

Donato, who was a pending restricted free agent, did not receive a qualifying offer from the Sharks by Monday’s deadline and will become an unrestricted free agent if he’s not re-signed by Wednesday.

The Sharks did qualify another RFA, forward Noah Gregor, to retain his negotiating rights.

Goalie Adin Hill was previously issued a qualifying offer by the Arizona Coyotes, thus his rights are retained by San Jose. Hill came to the Sharks in a July 17 trade with Arizona and still needs a new contract.

The Sharks, according to a source, are also expected to reach an agreement on a new deal with forward Nick Merkley, who was acquired from the New Jersey Devils on Monday for defenseman Christian Jaros. Merkley was a pending RFA.

Any players who are not issued qualifying offers can become unrestricted free agents. UFAs are free to sign with any team as of Wednesday morning at 9 a.m. (PT).

Donato, 25, made $2.15 million in salary last season, and the Sharks’ qualifying offer had to match that for the team to retain his negotiating rights. Given Donato’s inconsistent production, there just wasn’t enough bang for the Sharks’ buck to keep going forward.

Donato had six goals and 20 points in 50 games with the Sharks last season, bouncing around the lineup before eventually falling out of favor with coach Bob Boughner and his staff.

Donato, acquired by the Sharks last October from the Minnesota Wild for a 2021 third-round draft pick, saw his ice time gradually reduced from January to May, and he did not play in the Sharks’ final four games.

Donato had 14 goals and 23 points in 62 games with the Wild in 2019-2020 but was a healthy scratch for two of the team’s four games in the play-in round last summer.

It was hoped that a fresh start might benefit Donato, and he had 18 points in the Sharks’ first 35 games. But the winger finished with two points in the final six weeks of the season as San Jose fell out of playoff contention.

Going forward, the Sharks figure to be somewhat active once the free agency period begins, although it would be a surprise to see them land any big names.

General manager Doug Wilson has stated that he’ll be shopping for a couple of forwards, including a centerman that can fit in the third line, as he tries to put his team in a more competitive spot after San Jose missed the playoffs the last two years.

The Sharks could also be in the market for a goalie as Martin Jones’ future with the team remains in question.

Tuesday is the last day of the first buyout period, as NHL teams need to place a player on waivers before they can officially buy out that person’s contract. It has been speculated since the end of the season that Jones’ days with the organization were numbered, although Wilson said as recently as Saturday that he hadn’t finalized a decision on the 31-year-old goalie.

“When you look at teams that bounced back, they did add a couple of pieces, they made sure that they played the right way, they integrated some younger players they brought in some veteran players,” Wilson said Saturday. “That’s what you do from season to season.”

Should the Sharks buy out Jones, they would have, per CapFriendly, over $13 million in cap space for next season to spend on new players with Hill and Gregor needing new deals.

MORE ON THE TRADE: Merkley, 24, had 10 points in 27 games for the Devils last season as he bounced between the NHL roster, New Jersey’s taxi squad, and the AHL. Merkley, listed at 5-foot-10 and 194 pounds, was the Coyotes’ first-round draft choice in 2015.

In a statement, Joe Will, the Sharks assistant general manager and Barracuda GM said Merkley was “a competitive and skilled forward” who has “shown good progression in his young career and adds versatility to our organization’s forward depth.”

Jaros, who signed a one-year contract extension with New Jersey on Monday, was acquired by the Sharks from the Ottawa Senators in January. Jaros played in seven games for the Sharks and had one assist.