The NHL has successfully - and surprisingly, defended its decision to reject the New Jersey Devils' 17-year, $102 million contract with free-agent winger Ilya Kovalchuk.
The NHLPA was widely believed to have the upper hand, and other franchises had previously exploited the loophole in the collective bargaining agreement to front-load contracts and bring down the total salary cap hit on long-term deals. Arbitrator Richard Bloch ruled against the NHLPA's grievance of the NHL voiding of the contract, which means Kovalchuk is free to sign with any team. My beloved Kings, who held extensive talks with Kovalchuk before he signed with the Devils, are reportedly still interested, as is SKA St. Petersburg of Russia's Kontinental Hockey League. The Devils can try to negotiate another contract with Kovalchuk that the NHL might approve, but that would probably involve a less favorable salary cap hit for the Devils or less money for Kovalchuk. Or prehaps both.
There's no question that the Devils were trying to get around the salary cap with this contract, which paid $95 million in the first 10 years and then spread out the rest until Kovalchuk would be a 44. Bloch wrote in his ruling that the Kovalchuk deal "is a retirement contract" and that it goes "well beyond the typical retirement age for NHL players." So did it close the loophole? Hardly. But it will send a chilling effect through the teams and players and agents that try to exploit it - which was the point to begin with.
Puck Daddy takes a look at a few of the myths that are floating around the situation, and what it means for future contracts.
The NHLPA was widely believed to have the upper hand, and other franchises had previously exploited the loophole in the collective bargaining agreement to front-load contracts and bring down the total salary cap hit on long-term deals. Arbitrator Richard Bloch ruled against the NHLPA's grievance of the NHL voiding of the contract, which means Kovalchuk is free to sign with any team. My beloved Kings, who held extensive talks with Kovalchuk before he signed with the Devils, are reportedly still interested, as is SKA St. Petersburg of Russia's Kontinental Hockey League. The Devils can try to negotiate another contract with Kovalchuk that the NHL might approve, but that would probably involve a less favorable salary cap hit for the Devils or less money for Kovalchuk. Or prehaps both.There's no question that the Devils were trying to get around the salary cap with this contract, which paid $95 million in the first 10 years and then spread out the rest until Kovalchuk would be a 44. Bloch wrote in his ruling that the Kovalchuk deal "is a retirement contract" and that it goes "well beyond the typical retirement age for NHL players." So did it close the loophole? Hardly. But it will send a chilling effect through the teams and players and agents that try to exploit it - which was the point to begin with.
Puck Daddy takes a look at a few of the myths that are floating around the situation, and what it means for future contracts.
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