NHL Rejects Kovalchuk Deal

[TowerAgentOliver]

The NHL rejected Ilya Kovalchuk's 17-year, $102 million conract with the Devils because it circumvents the league's salary cap.



"Under the CBA, the contract rejection triggers a number of possible next steps that may be elected by any or each of the NHLPA, the Player and/or the Club," NHL deputy commissioner Bill Daly said in a statement. "In the interim, the player is not entitled to play under the contract, nor is he entitled to any of the rights and benefits that are provided for thereunder. The League will have no further comment on this matter pending further developments."


Why didn't they stop Hossa's move? Why not Savard's deal?

This isn't against any rules. The NHL just doesn't want to get out-smarted. That's it.

Where will he go now?

[Riv34]

In case you missed it, and if you did, you've been living under a rock for the past 24 hours, the NHL rejected Ilya Kovalchuk's deal with the New Jersey Devils. The 17-year, $102 million deal would have paid Kovalchuk $98.5 million in the first 11 years of the deal, with Kovalchuk earning the league minimum ($550k) for the remaining years, save for one year where he would make $750k. The Devils, in a rare PR slip up, held a press conference to announce the signing before the NHL had approved the deal. Less than 12 hours later, the deal was rejected.

The deal, although clear circumvention of the salary cap, is legal within the verbiage of the CBA. The NHL has decided to make its stand against these long term, front loaded, contracts with Kovalchuk, but in reality, the problem started in 2007 when Mikka Kipprusoff signed his new deal with Calgary. The deal included an extra year at the end of the contract for $1.5 million. Not exactly alarming, but it made the loophole in the CBA very evident to the other 29 NHL GMs.

Contracts like Vinny Lecavalier (11 years, $85 million with one year at $1.5 million and one year at $1 million), Henrik Zetterberg (12 years, $73 million with two years at $1 million), Marian Hossa (12 years, $63.3 million with four years at $1 million), Duncan Keith (13 years, $72 million with three years at < $3 million, including one year at $1.5 million), Roberto Luongo (12 years, $64 million with one year at $1.6 million and two years at $1 million) made the loophole the topic of conversation amongst NHL GMs, and the NHL front office looking to put an end to the contracts. The NHL has had a little success, as they declared the Chris Pronger contract to be a 35+ contract, despite the fact that he signed the deal before he was 35 years old, something that the CBA verbiage is rather ambiguous about. The Chris Pronger contract is a separate issue altogether though.


When you look at the above contracts, each one has added years at the end of the contract with the sole purpose of bringing down the salary cap number. Although none are as extreme as the Kovalchuk deal, they are still blatant salary cap circumvention contracts. What is similar with each of the aforementioned contracts is that each one is designed to have the player signed up to, or past the age of 40. Luongo's and Hossa's contracts will have them signed until they are 42, and Keith's contract leaves him signed until he is 40. Kovalchuk's contract will keep him signed until he is 44. In terms of length, there is minimal difference here. If you expect any or all of these players to continue playing well into their 40s, then I want to take a sip of whatever it is you're drinking. Although playing until 41 isn't exactly unheard of (see: Chelios, Chris), each one of these deals is specifically designed to have the player retire prior to the expiration of the contract. I'm not being biased, I'm being realistic.
The main argument with the Kovalchuk contract is that his deal has 7 years at or near the league minimum salary of $550k. These years make the Kovalchuk contract blatant circumvention, but only in the sense that the structure of the contract was ridiculous and an attempt to further exploit the loophole in the CBA. The NHL has no case because all Lou Lamoriello and the Devils have to do is take some of those $11.5 million seasons, and redistribute the cash to the back end of the contract to bring the salary to around $1 million, and then resubmit the contract for approval. By doing so, the Devils do not have 7 years of league minimum, but 7 years at twice the league minimum, which is how the other contracts are structured. When this is done, and it will be very soon, the NHL will have no case against the Devils, because of the previously approved contracts that pay 40 year old players $1 million, as described above. Sure, Kovalchuk would lose around $500k per season for a few years, but would be gaining some of it back at the end of the deal when he would be making league minimum. It's not a win-win, but it's as close you can get to one while leveraging what the NHL has already approved.
It is good to see the NHL grew a pair and is attempting to put its foot down with these contracts. However, the simple solution is to redistribute the money. It's hard to see Kovalchuk rejecting that type of deal, as it is unlikely for him to receive that lucrative of a contract, with that job security, anywhere else. So while most will consider this a win for the NHL, it is simply delaying the inevitable. Kovalchuk will be a Devil, for the same term, same salary, and same AAV, the only difference will be the distribution of the salary. (Blueshirt Banter)

[PuckOff]

it's going to be interesting to both see how this plays out and how long it takes to sort this out. Looks good on teh NHL though. Should have made sure there were no ways to circumvent the cap. Will also make for an interesting time leading up to the next CBA agreement. I smell another lockout, but doubt it will happen as it will really screw the league and franchises up in a big way this time around.

[Gokhan]

not surprising decision

[OTL]

If there was also a hard cap placed on player salaries this crap wouldn't be going on.

[jhause13]

Exactly

[PuckOff]

salaries should be 5 years MAX OR even 1 year salaries based on previous years performance with a hard cap on player salaries OR just like the NFL.

[alex81]

The NHL should have a rule where players cannot be offered contracts that are more than 10 years if it would keep the same player under contract after the age of 40. This would be strong measure to prevent these ridiculous huge contracts that are intended to exploit the loophole in the cap system.

[Gokhan]

they need to think about a new rule right now

[PuckOff]

things are certaily quiet on teh Ko-V front. Now it's most likely holding other deals again.

[Riv34]

add in something where, for example, Kovy's lowest paying year on the contract, must be for at least 50% of the biggest paying year in the contract.

Hope that made sense lol

[PuckOff]

not even close

[ronjon619]

that was a crazy deal

[Gokhan]

add in something where, for example, Kovy's lowest paying year on the contract, must be for at least 50% of the biggest paying year in the contract.

Hope that made sense lol

interesting idea. i liked it. but who cares me

[chaka]

hope kovy never wins a cup after stringing along atl then screwing them over not accepting 100m

[rickie65]

hard cap, 50% limits, cap on years, etc. all sound ok but good luck getting the players union to agree to anything "logical" to control how much a player ad their agent can make

[VPIHokies]

yes

[scratbandit]

A hard cap is exactly correct in this situation...

[PuckOff]

hope kovy never wins a cup after stringing along atl then screwing them over not accepting 100m

He didn't screw over Atlanta. They traded him to NJ for some nice players/prospects. Don Waddel had a chance to build a legit team aroudn him, but failed miserably. Atlanta screwed themselves.

[Thomas_Garber]

nhl players should get paid more than basketball players. why the hell do they have such low caps. i guess its because nba market is much bigger.

[icecapper]

Loophole in the CBA that was never corrected.

[SweatySombrero]

[COLOR=#000000 ! important]The NHL rejected Ilya Kovalchuk's 17-year, $102 million conract with the Devils because it circumvents the league's salary cap.



"Under the CBA, the contract rejection triggers a number of possible next steps that may be elected by any or each of the NHLPA, the Player and/or the Club," NHL deputy commissioner Bill Daly said in a statement. "In the interim, the player is not entitled to play under the contract, nor is he entitled to any of the rights and benefits that are provided for thereunder. The League will have no further comment on this matter pending further developments."


Why didn't they stop Hossa's move? Why not Savard's deal?

This isn't against any rules. The NHL just doesn't want to get out-smarted. That's it.

Where will he go now?[/COLOR]




o yeah.all the time

[Brewers in 7]

didnt he turn down 10 years 100 million from atlanta? think that was a red flag in the nhl's mind

[rickie65]

nhl players should get paid more than basketball players. why the hell do they have such low caps. i guess its because nba market is much bigger.

bigger market, bigger TV contracts (at least in the US), smaller rosters, more ticket sales potential when some play in NHL arenas with more seating capacity with the floor seats added in.

seems the NBA should have it easiest among the 4 major team sports.

consider the NFL with much bigger rosters and only 8 home games to sell tix for. Outside revenue must be unreal

[DwightShrute]

Arbitrator voids Kovalchuk’s deal with Devils

Independent arbitrator Richard Bloch made winners of the National Hockey League on Monday.
Bloch ruled against the NHL Players’ Association in deciding that the NHL was within its powers to reject the 17-year, $102-million US contract agreed to by the New Jersey Devils and Ilya Kovalchuk on July 19.
Monday’s decision made the superstar an unrestricted free agent once again and earned the gratitude of the NHL.
“We want to thank arbitrator Bloch for his prompt resolution of a complex issue,” Bill Daly, deputy commissioner of the NHL, said in a statement Monday. “His ruling is consistent with the league’s view of the manner in which the collective bargaining agreement should deal with contracts that circumvent the salary cap.”
Kovalchuk’s contract with the Devils had been rejected by the league three weeks ago based on the deal’s top-heavy structure. Other mega contracts — such as Vancouver Canucks goaltender Roberto Luongo’s 12-year, $63-million agreement and Chicago Blackhawks forward Marian Hossa’s 12-year, $62.8-million deal — were not contested by the NHL. However, those deals were shorter and did not drop as dramatically money-wise as they concluded.
The NHLPA promptly filed a grievance over the NHL’s rejection of the Kovalchuk contract, sending it to arbitration.
“The NHLPA is disappointed with the arbitrator’s ruling to uphold the NHL’s rejection of the contract between the New Jersey Devils and Ilya Kovalchuk,” the union said in a statement. “The NHLPA is currently reviewing the decision and will have no further comment at this time.”
Under the terms of the deal, Kovalchuk was to earn $6 million in each of the next two seasons. The big money was to kick in from 2012-17 when he was to earn a whopping $11.5 million per season.
The final five years of the Devils contract saw Kovalchuk making only $550,000, thus lowering the annual salary cap hit.
The deal was to run through 2027 when Kovalchuk will be 44 years old.
The Russian star made $7.5 million last season playing for both the Devils and Atlanta Thrashers. Prior to dealing Kovalchuk at the trade deadline, the Thrashers offered their star two long-term deals which were turned down by he and his agent, Jay Grossman.
The 27-year-old winger combined for 41 goals and 44 assists between the Thrashers and Devils in 76 games last season.
Kovalchuk was selected first overall by Atlanta in the 2001 NHL entry draft.
During his eight-year NHL career, the native of Tver, Russia, has surpassed the 50-goal plateau twice. Kovalchuk scored 52 times in both 2005-06 and 2007-08.
In 621 regular-season games, Kovalchuk has 338 goals and 304 assists for 642 points.
Kovalchuk’s history in the playoffs is not a lengthy one. He’s played just nine games and has three goals and five assists.

Read more: http://www.theprovince.com/Arbitrato...#ixzz0w9teNtGP

[DwightShrute]

sorry, I must have miss the previous thread and thought I posted BREAKING NEWS

[Types]

good now maybe my kings can sign him now

[jollyoscars]

very glad it was rejected! it was a cheap deal and the nhl NEEDED to take a stand

[OTL]

I hope he takes his greedy ass to the KHL soon so I don't have to hear about this saga anymore.

[DennisGreen]

LOL owned. Now the NHL is reviewing the Luongo long term deal. This will be interesting if they try to ban it somehow. Could get very ugly soon between the players union and the NHL. No strike please!

[Nicky Santoro]

i am not shocked at all by this.. i expected it.. deal didn't sound right..

[PuckOff]

i am not shocked at all by this.. i expected it.. deal didn't sound right..

A lot of deals didn't sound right at the time. I just want to know why the Ko-V one was the one that made the NHL finally decide to bitch about it. I think Bettman was pissed that Ko-V signed in NJ and not in a bigger market that would have helped promote the game.

[Types]

maybe

[DwightShrute]

LOL owned. Now the NHL is reviewing the Luongo long term deal. This will be interesting if they try to ban it somehow. Could get very ugly soon between the players union and the NHL. No strike please!

hope they do. He's not worth all that money.

[DennisGreen]

hope they do. He's not worth all that money.

Yeah you know what if Luey chokes again this year I agree with you, time to move on to another. He is one of the weakest goalies mentally in the whole league.