Nolan broke new ground in contract negotiations, having a clause put in that stated if the 2004–05 NHL season was cancelled, then he would gain a player option for an additional year in 2005–06. However, with the NHL CBA in place, this option became a topic of debate. With the new NHL salary cap, the Maple Leafs deemed Nolan's salary too high, and refuse to recognize Nolan as under contract. Nolan argued that the option was valid, that he would play, and be paid, for the Toronto Maple Leafs, and that he deserved to be paid during the 2004–05 NHL lockout due to injury. The Maple Leafs, who deemed Nolan as healthy just after the lock-out, claimed that the injury was incurred off the ice and refused to pay Nolan's desired US$12 million. The case went to an arbitrator. This case was settled in late 2006, however, the terms of the agreement by Leafs management and Nolan were not disclosed. In 2005–2006, Nolan took time off for his injured knees to heal, training in San Jose at Sharks Ice. Before the playoff push, Nolan indicated that several teams (including San Jose) wanted to sign him, but he decided not to play because he wanted to be at 100%, both because he did not want to become re-injured and because he felt he owed his team that.