UPDATE PT.2: Kovalchuk (NHL VOIDS CONTRACT W/NJ)

[WaukeeBlues]

The simplest solution would be to have the salary cap figure equal the actual salary.

That would allow for yearly fluctuations to accommodate teams' budget interests. That would eliminate the incentive for front- or back-loaded contracts for the purpose of cap circumvention.

Easy to understand, administer and enforce.

No, see that would be what we sane people call a "common sense" approach.

[Winning Unlimited]

Statisticians call it unimaginative.

[WaukeeBlues]

Arbitrator rules in favor of NHL.

I feel like this is the right result, I really do.

http://www.tsn.ca/nhl/story/?id=330008

It's back to the drawing board for Ilya Kovalchuk and the New Jersey Devils.

The two sides started discussing a restructured contract on Monday night, just hours after arbitrator Richard Bloch ruled in favour of the NHL's rejection of their original 17-year, US$102-million deal.

After reviewing Bloch's decision, the Devils released a statement saying they respected it. The team also indicated it still hopes to have the talented Russian winger in its lineup next season.

"While we do not currently have a contract with Ilya Kovalchuk, discussions have resumed and we are hopeful that a contract will be reached that meets with the principles in arbitrator Bloch's award and the NHL's approval," said Devils president and general manager Lou Lamoriello.

In the meantime, Kovalchuk is an unrestricted free agent for the second time this summer -- leaving open the possibility the Los Angeles Kings or Russian-based SKA St. Petersburg could make renewed pitches for his services.

It remains to be seen what kind of overall affect Bloch's decision might have on the league. While the NHL has long been displeased with lengthy front-end-loaded contracts, the Kovalchuk deal was the first one it decided to challenge.

Philadelphia Flyers defenceman Chris Pronger, Vancouver Canucks goaltender Roberto Luongo, Chicago Blackhawks winger Marian Hossa and Boston Bruins centre Marc Savard are among a long list of players who have signed long-term deals that included extra years with diminished salary.

In making his ruling on Kovalchuk, Bloch concluded that "this contract is 'intended to, or has the effect' of defeating or circumventing the salary cap provisions of the CBA (collective bargaining agreement)."

The NHL came to a similar conclusion when it originally decided not to approve the Kovalchuk deal on July 20. It felt the Devils went too far in giving the 27-year-old a contract that would pay $95 million over the first 10 years, but only $7 million over the final seven -- reducing the cost against the salary cap to a relatively modest $6 million per year.

The NHL Players' Association filed a grievance disputing the league's position and Bloch oversaw two days of hearings in Boston before making his decision.

"We want to thank arbitrator Bloch for his prompt resolution of a complex issue," NHL deputy commissioner Bill Daly said in a statement. "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."

The NHLPA said in a statement that it was "disappointed" and continued to review the decision.

Tapered contracts arose after a salary cap was instituted following the lockout that wiped out the 2004-05 season. Next season's cap is $59.4 million per team.

Kovalchuk's deal was slated to pay $6 million in each of the next two seasons, jump to $11.5 million for five seasons, and then drop to $10.5 million, $8.5 million, $6.5 million and $3.5 million for one year each before slowing to $750,000 for 2021-22 and then $550,00 through to 2027.

One of the issues highlighted by Bloch was the fact that Kovalchuk would be under contract until his 44th birthday -- well past retirement age for most players.

"The overall structure of this (contract) reflects not so much the hope that Mr. Kovalchuk will be playing in those advanced years, but rather the expectation that he will not," Bloch wrote.

The contract would also have been the longest in league history at 17 seasons. In length, that tops Rick DiPietro's 15-year-deal with the New York Islanders and Alex Ovechkin's 13-year-deal with the Washington Capitals.

Kovalchuk was the biggest name among this summer's free-agent class, having scored 40 or more goals in six consecutive seasons. He finished last season in New Jersey after turning down a $101-million, 12-year extension from the Atlanta Thrashers in February and subsequently being traded.

[Robb_K]

GOOD! Now The NHL will be protected from any more ludicrous contracts, at least until the next CBA.

[sseagle]

This may get interesting yet? I don't know if they can go back and void contracts...

VANCOUVER — The Ilya Kovalchuk ruling Monday could sweep up Vancouver Canuck goalie Roberto Luongo in its net.


Arbitrator Richard Bloch, who threw out Kovalchuk's 17-year, $102 million front-loaded deal with the New Jersey Devils, also made reference in his ruling to four other long-term contracts: ones signed by Luongo, Philadelphia's Chris Pronger, Chicago's Marian Hossa and Boston's Marc Savard.


The National Hockey League Players Association noted that since these four contracts had been approved "with structures similar" to the Kovalchuk deal, then Kovalchuk's deal with the Devils should also be approved. However, Bloch wrote:


"The apparent purpose of this evidence is to suggest that the League's concern is late blooming and/or inconsistent. Several responses are in order: First, while the contracts have, in fact, been registered, their structure has not escaped League notice: those SPCs [standard player's contracts] are being investigated currently with at least the possibility of a subsequent withdrawal of the registration."


Canuck general manager Mike Gillis confirmed in an email to the Vancouver Sun Monday night that the league is indeed studying Luongo's 12-year, $64 million contract.


"We have complied with the NHL request for information and are awaiting further instructions," Gillis said. "Cannot say anything further at this point."


Luongo's deal, signed last September, begins this season and will pay him $10 million in 2010-11. In the final year, when he is 43, Luongo is scheduled to make just $1 million. The goaltender's cap hit over the 12 years is $5.33 million.


In regards to Luongo's contract, Bloch wrote:"[Luongo] has a 12-year agreement that will end when he is 43. After averaging some $7,000,000 per year for the first 9 years of the Agreement, Luongo will receive an average of about 1.2 million during his last 3 years, amounting to some 5.7% of the total compensation during that time period."


The league had rejected Kovalchuk's 17-year deal, saying the longest deal in league history violated its salary cap.


The NHL Players Association filed a grievance against the league. A hearing was held last week and arbiter Bloch sided with the league when he issued his ruling.


The decision puts Kovalchuk back on the free agent market. The high-scoring Russian was hockey's biggest prize in free agency this year with 338 goals and 304 assists in 642 career games.


"We want to thank arbitrator Bloch for his prompt resolution of a complex issue," NHL deputy commissioner Bill Daly said in a statement. "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."


The players' association said it was disappointed with the ruling, which it was reviewing. It had no further comment.


New Jersey can be fined or lose draft picks for signing Kovalchuk to a contract that circumvented league rules.


Kovalchuk and the Devils agreed to the deal July 19. The next day, the league determined the contract was illegal because years of low salary at the end lowered the cap hit. The union filed a grievance July 26.


The all-star was slated to earn only $550,000 in each of the last five seasons of the rejected deal. It would have run through the 2026-27 season, when Kovalchuk will be 44.


Kovalchuk had 41 goals and 44 assists last season, when he was traded to the Devils by Atlanta in February. The 27-year-old is the league's leading scorer since 2001 with 338 goals.



Read more: http://www.vancouversun.com/business/Ro ... z0wDIhm790

[fargoblues]

If NJ actually loses draft picks, how sweet would that shit be? Karma, she's a bitch.

[JPonder94]

I'm happy for the deal being voided, but I am not ok with them reviewing past contracts. While I'm not a fan of them, the NHL already approved these deals. Going back on them will just piss the NHLPA off even more, furthering thoughts that another lockout is imminent.

[philco_3]

I'm happy for the deal being voided, but I am not ok with them reviewing past contracts. While I'm not a fan of them, the NHL already approved these deals. Going back on them will just piss the NHLPA off even more, furthering thoughts that another lockout is imminent.

And that is all the NHL needs is another lockout. With Luongos contract that he signed does that mean that they could say that the contract he signed will be null and void since it doesn't go in to effect until the beginning of this year?

[A-Yo!]

I too am glad that Lou gets one right in the dice!

Can we get a draft pick or something from the bastid!

Is Parise an RFA this coming up year? I say get the dough ready for him just to see Lou squirm that freakin weasel!

But at least we know what the going rate for Kolvy is...Blues brass wanna pony up?

[JPonder94]

But at least we know what the going rate for Kolvy is...Blues brass wanna pony up?

28 year deal for $100 million. That's my final offer.

[A-Yo!]

But at least we know what the going rate for Kolvy is...Blues brass wanna pony up?

28 year deal for $100 million. That's my final offer.

Oh I soooo have that one beat. 40 year for 2.5 a year.

[Leedog]

I guess the dif between opening up Luongo and Hossa n Pronger is their contracts already have started an Luongo was an extension that doesn't actually kick in until this season.

[philco_3]

But at least we know what the going rate for Kolvy is...Blues brass wanna pony up?

28 year deal for $100 million. That's my final offer.

Oh I soooo have that one beat. 40 year for 2.5 a year.

56 years for 175 million. 3.125 million a year, no front loaded crap.

[WaukeeBlues]

I'm happy for the deal being voided, but I am not ok with them reviewing past contracts. While I'm not a fan of them, the NHL already approved these deals. Going back on them will just piss the NHLPA off even more, furthering thoughts that another lockout is imminent.

I agree and I think the only thing the NHL should do at this point is be more strict from here-on-out. Just finally get a message out there "that area is over."

There's nothing to be done about the players that are already in the midst of such contracts. The NHL has to save its legitimacy here and should just be proactive in the future and law down the law now.

[Leedog]

At the risk of being considered super critical, I must correct you. It should be, "that area is over". Get it right!

[WaukeeBlues]

At the risk of being considered super critical, I must correct you. It should be, "that area is over". Get it right!

Noted and corrected.

[JPonder94]

At the risk of being considered super critical, I must correct you. It should be, "that area is over". Get it right!

Noted and corrected.

No "EDIT" note on the original post? I am highly disappointed in your failed attempts to write properly on this board!!!

[WaukeeBlues]

At the risk of being considered super critical, I must correct you. It should be, "that area is over". Get it right!

Noted and corrected.

No "EDIT" note on the original post? I am highly disappointed in your failed attempts to write properly on this board!!!

That's cause I do what I want!

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