Reports are coming out that the NHL is rejecting the deal.
Sources: NHL rejects Ilya Kovalchuk deal with New Jersey Devils - ESPN New York
Sources: NHL rejects Ilya Kovalchuk deal with New Jersey Devils - ESPN New York
NHL rejects Kovalchuk deal
- Thread starter Kreskin
- Start date
17 years and $102 million US. I can't say I really follow the whole logic train in why the league rejected it but I wonder how it will play out. It does seem, from all the chatter leading up to the signing that Kovalchuk wants to stay in New Jersey, so even if its voided I think they'll find a way to get him there.
yes kovalchuk wants to play in new jersey, and he agreed to that contract, but nhl definitely has
rejected it.
they are manipulating the rules, finding loopholes, not really illegal, but making mockery of the
system.
he will never play for 17 more years, and the last 7 years were for 1 mill per year.
it is front end loaded, so he gets his money, and gradually decreases, it makes it possible
for the team to fit under the cap, and spread the money over that amount of time.
he will just walk away from the deal when he retires, at around 35 or so, if his body holds
out that long, as he and the team know he can't possibly play 17 more years.
wonder what they will come up with next.
rejected it.
they are manipulating the rules, finding loopholes, not really illegal, but making mockery of the
system.
he will never play for 17 more years, and the last 7 years were for 1 mill per year.
it is front end loaded, so he gets his money, and gradually decreases, it makes it possible
for the team to fit under the cap, and spread the money over that amount of time.
he will just walk away from the deal when he retires, at around 35 or so, if his body holds
out that long, as he and the team know he can't possibly play 17 more years.
wonder what they will come up with next.
Question...
Is this sort of the NHL's way of avoiding what happened in Major League Baseball with regards to out of control contracts?
Is this sort of the NHL's way of avoiding what happened in Major League Baseball with regards to out of control contracts?
Since they are using a loophole, and it isn't illegal with regards to the CBA of the NHL, I suspect that the Player's Union will grieve this.
Why is the NHL suddenly doing something against this when they allowed the exact same types of contracts to be signed by Hossa, Di Pietro, Pronger, Ovechkin. If they really didn't want this sort of contract to be signed, then they should have stepped in during the very first one.
Why is the NHL suddenly doing something against this when they allowed the exact same types of contracts to be signed by Hossa, Di Pietro, Pronger, Ovechkin. If they really didn't want this sort of contract to be signed, then they should have stepped in during the very first one.
yes, we were wondering that same thing, possibly this particular contract goes a step further, not
sure, n. jersey are not going to appeal the decision, and they have five days to come up with a
new contract for kovalchuk.
what i'm not sure about, is kovalchuk now a free agent again, or does he have to wait the five days.
He has to wait the process out. If the NHLPA doesn't grieve it or the arbitrator rules against it, he's a UFA again.
The current CBA explains circumvention as the following in section 26.3:
(a) No Club or Club Actor, directly or indirectly, may: (i) enter into any agreements, promises, undertakings, representations, commitments, inducements, assurances of intent, or understandings of any kind, whether express, implied, oral or written, including without limitation, any SPC, Qualifying Offer, Offer Sheet or other transaction, or (ii) take or fail to take any action whatsoever, if either (i) or (ii) is intended to or has the effect of defeating or Circumventing the provisions of this Agreement or the intention of the parties as reflected by the provisions of this Agreement, including without limitation, provisions with respect to the financial and other reporting obligations of the Clubs and the League, Team Payroll Range, Player Compensation Cost Redistribution System, the Entry Level System and/or Free Agency.
I guess they're looking at the difference between the $6million per year at the start and the $550thousand at the end, and judging that this is a blatant attempt to circumvent the rules, that nobody seriously expects him to play for 17 years.
(a) No Club or Club Actor, directly or indirectly, may: (i) enter into any agreements, promises, undertakings, representations, commitments, inducements, assurances of intent, or understandings of any kind, whether express, implied, oral or written, including without limitation, any SPC, Qualifying Offer, Offer Sheet or other transaction, or (ii) take or fail to take any action whatsoever, if either (i) or (ii) is intended to or has the effect of defeating or Circumventing the provisions of this Agreement or the intention of the parties as reflected by the provisions of this Agreement, including without limitation, provisions with respect to the financial and other reporting obligations of the Clubs and the League, Team Payroll Range, Player Compensation Cost Redistribution System, the Entry Level System and/or Free Agency.
I guess they're looking at the difference between the $6million per year at the start and the $550thousand at the end, and judging that this is a blatant attempt to circumvent the rules, that nobody seriously expects him to play for 17 years.
that's true, but those same circumstances are present in the other similar contracts that were approved.
I would presume that n. jersey will come up with an alternative contract offer inside of the 5 days,
and it will be interesting to see what the nhlpa do, if anything.
nhl has a salary cap, so contracts cannot get out of control, this is just a way of manipulating
the cap that is allready there, but there is a limit and teams cannot go over it.
REPORT: NHL LOOKING INTO LUONGO'S, OTHER FRONT LOADED DEALS
Arbitrator Richard Bloch's ruling to side with the NHL on voiding Ilya Kovalchuk's contract on Monday could affect other such front-ended hockey contracts.
Canucks general manager Mike Gillis confirmed to the Vancouver Sun via email late Monday night that the league is looking into Roberto Luongo's 12-year contract that was signed last fall.
"We have complied with the NHL request for information and are awaiting further instructions," Gillis told The Sun. "Cannot say anything further at this point."
Bloch's ruling specifically mentioned the contracts of Luongo, Philadelphia Flyers defenceman Chris Pronger, Boston Bruins forward Marc Savard and Chicago Blackhawks forward Marian Hossa as deals that the league is still investigating.
"Each of these players will be 40 or over at the end of the contract term and each contract includes dramatic divebacks," Bloch wrote in his ruling. "Pronger's annual salary, for example, drops from $4,000,000 to $525,000 at the point he is earning almost 97% of the total $34,450,000 salary.
"Roberto Luongo, with Vancouver, has a 12- year agreement that will end when he is 43. After averaging some $7,000,000 per year for the first nine 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 NHL Players' Association argued that those four deals were approved and that Kovalchuk's deal should be approved as well.
Bloch disagreed with that point, writing:
"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."
Pronger, Luongo, Hossa and Savard are among a long list of players who have signed long-term deals that included extra years with diminished salary.
Arbitrator Richard Bloch's ruling to side with the NHL on voiding Ilya Kovalchuk's contract on Monday could affect other such front-ended hockey contracts.
Canucks general manager Mike Gillis confirmed to the Vancouver Sun via email late Monday night that the league is looking into Roberto Luongo's 12-year contract that was signed last fall.
"We have complied with the NHL request for information and are awaiting further instructions," Gillis told The Sun. "Cannot say anything further at this point."
Bloch's ruling specifically mentioned the contracts of Luongo, Philadelphia Flyers defenceman Chris Pronger, Boston Bruins forward Marc Savard and Chicago Blackhawks forward Marian Hossa as deals that the league is still investigating.
"Each of these players will be 40 or over at the end of the contract term and each contract includes dramatic divebacks," Bloch wrote in his ruling. "Pronger's annual salary, for example, drops from $4,000,000 to $525,000 at the point he is earning almost 97% of the total $34,450,000 salary.
"Roberto Luongo, with Vancouver, has a 12- year agreement that will end when he is 43. After averaging some $7,000,000 per year for the first nine 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 NHL Players' Association argued that those four deals were approved and that Kovalchuk's deal should be approved as well.
Bloch disagreed with that point, writing:
"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."
Pronger, Luongo, Hossa and Savard are among a long list of players who have signed long-term deals that included extra years with diminished salary.
yes, I would like to see those contracts opened up and redone with some sense of ethics in mind.
although, apparantly nothing illegal was done, a group of lawyers obviously searched and found
a loophole to jump thru, and consequently those other contracts were registered before the kovalchuk
one was applied for, so I'm glad to see those contracts challenged, too bad they weren't turned back
at the time they were sent in to the NHL.
In my opinion it is making mockery of the negotiating system and contract numbers, there is no reason
whatsoever why a player should receive a yearly salary after he has retired and can no longer play
at a level that would make him competetive and desirable to any team.
If, when negotiating they can't fit a complete contract into a normal set of years,
then something has to be changed before it is signed and registered.
At this point kovalchuk is a 'free agent', wouldn't it be interesting if another
team gave him a different offer and he accepted it. hmmmmm
although, apparantly nothing illegal was done, a group of lawyers obviously searched and found
a loophole to jump thru, and consequently those other contracts were registered before the kovalchuk
one was applied for, so I'm glad to see those contracts challenged, too bad they weren't turned back
at the time they were sent in to the NHL.
In my opinion it is making mockery of the negotiating system and contract numbers, there is no reason
whatsoever why a player should receive a yearly salary after he has retired and can no longer play
at a level that would make him competetive and desirable to any team.
If, when negotiating they can't fit a complete contract into a normal set of years,
then something has to be changed before it is signed and registered.
At this point kovalchuk is a 'free agent', wouldn't it be interesting if another
team gave him a different offer and he accepted it. hmmmmm
I have to agree Talloola, but think of the chaos if all the sudden Luongo, Pronger, Savard and Hossa all become UFAs...it could be a lot of fun to watch although maybe not quite so much fun for the teams and fans of the teams they signed with...
Personally I don't think the arbitrator or the league has legal merit to kill these deals based on the current CBA. If the league wasn't smart enough to see this coming then that's their problem until the current agreement ends. Unfortunately, with this BS, I think the league is pushing us towards another season without hockey.
Yippee....:-(
Yippee....:-(
well in luongo's case many of the fans would be hollering to reduce the money, or even trade him away,
as he didn't play up to the standards expected from him last year, and canuck fans were getting
quite nasty, so it would be interesting, no doubt.
I'm sure if these contracts were opened up, they could be adjusted, with player/agent/team agreeing
to something similar, but more acceptable and ethical, and they could have a clause saying that the
player is still part of that team, but 'please' come up with something we can live with, and for the
time being, the player is not a free agent unless after a certain time period, nothing can be accomplished.
Now the NHL has given the players association an ultimatum.
They must agree to a new 'adjusted' cap system before the kovalchuk deal is approved, and if
they don't, the kovalchuk deal will be rejected and so will luong's and hossa's will be looked at
again too, and possibly also rejected.
I know the NHL should have rejected the very first deal of this sort, BUT I agree with them, as
the gms' are starting to make a mockery of the cap system, and something has to be done, and just
because it is late in the day, it is still the right thing to do, so 'do it'.
Many canuck fans want to see luongo's contract opened up anyway, so some of it will be taken away,
but we all know that won't happen, but still I don't know how they adjust the contract and still
end up with the same amount of money. For instance, if they have to take the 7. whatever million
cap hit this season, instead of the 5. whatever, which is what the contract says now, the canucks
will be well over the cap, then what.
If the players association completely reject any change in the format they now have, a new nhl
war will start between nhl and players assoc.
They must agree to a new 'adjusted' cap system before the kovalchuk deal is approved, and if
they don't, the kovalchuk deal will be rejected and so will luong's and hossa's will be looked at
again too, and possibly also rejected.
I know the NHL should have rejected the very first deal of this sort, BUT I agree with them, as
the gms' are starting to make a mockery of the cap system, and something has to be done, and just
because it is late in the day, it is still the right thing to do, so 'do it'.
Many canuck fans want to see luongo's contract opened up anyway, so some of it will be taken away,
but we all know that won't happen, but still I don't know how they adjust the contract and still
end up with the same amount of money. For instance, if they have to take the 7. whatever million
cap hit this season, instead of the 5. whatever, which is what the contract says now, the canucks
will be well over the cap, then what.
If the players association completely reject any change in the format they now have, a new nhl
war will start between nhl and players assoc.
You blame the union for this?
This is the fault of a dick who puts the owners interests at the fore front and cares little for the actual game.
Now the little sh*t wants to renegotiate the deal with the PA because he couldn't conclude that this sort of crap would happen after losing an entire year of hockey.
I'd like to know what that lost year actually accomplished.
Prepare for this to happen again in two years.
Time for Gary to go.
I don't blame anybody, it was just a contract that didn't figure on the gm s finding the big
loophole, which they did, and that does make mockery of the cap system, so it had to change.
And it has changed, as the players union has allready agreed to the change, kovalchuk's contract
with be approved and luongo's will stay as is, as well as Hossa's.
I'm very glad of that, didn't want to see the two sides fighting over this, there are more
important things for them both to get on with, so now they can do that.
loophole, which they did, and that does make mockery of the cap system, so it had to change.
And it has changed, as the players union has allready agreed to the change, kovalchuk's contract
with be approved and luongo's will stay as is, as well as Hossa's.
I'm very glad of that, didn't want to see the two sides fighting over this, there are more
important things for them both to get on with, so now they can do that.
Last edited: