Instead of $102 million the contract winger Ilya Kovalchuk signed Monday July 19 appears to be worth the cost of the paper it was signed on, at best. Rumors of the league rejecting the deal surfaced in media late Tuesday July 20 and the following day the league office confirmed they had rejected the contract.
League Releases Statement on Rejected Kovalchuk Contract
Here is the statement the league released Wednesday July 21: "The contract has been rejected by the League as a circumvention of the Collective Bargaining Agreement. 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. 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."
The Devils responded with a statement that said they were "extremely disappointed" with the NHL's ruling and that they felt the contract complied with the CBA but would have no further comment until "the process outlined in the CBA is complete."
NHL New Jersey Devils Press Conference Featured Talk of Stanley Cup
In the afternoon Tuesday the Devils, with G.M. Lou Lamoriello, Kovalchuk, coach John MacLean and a number of players including Martin Brodeur, Zach Parise, team captain Jamie Lagenbrunner and Patrick Elias, held a press conference at the Prudential Center in Newark. In front of assembled media there was backslapping, congratulations and mutual praise admidst talk of how they would compete together for a Stanley Cup. But with the NHL's reaction to the contract that is in limbo.
NHL May Object to the 17 Years and Heavy Front Loading of Kovy Contract
Terms of the deal were $102 million over the 17-year life of the contract and though Kovalchuk talked of playing until 44 at the press conference, which he will be in the last year of the contract, it seems highly unlikely. Further, the deal would earn him $95 million over the first 10 years, until age 37, then only 7 million the final seven. Yet the cap hit would be averaged out over the life of the contract.
A devil of a deal and one the NHL seems to feel went too far.
It is not however so very different in principle from the deal that Marian Hossa signed last year with the Chicago Black Hawks. There was no objection to that deal yet the then-30 year-old Hossa signed for 12 years - he'll be 42 when it expires - for over $62 million. In his deal Hossa is reportedly being paid $7.4 million per year for the first 8 years and then only $3.5 million in total for the last four.
These kinds of contracts represent a loophole the NHL would surely seek to close during negotiations for the next collective bargaining agreement due before the 2011-2012 season, but why take it up now and not with Hossa or one of the other similar contracts (e.g. Marc Savard or Chris Pronger)?
CBA Issues Leaves Kovalchuk Unsigned, Devils With Salary Cap Issues
What will happen now is not known. Will they renegotiate? Maybe the deal was the only way the Devils could sign Kovalchuk - even with it they're over the salary cap - and maybe without it's absurdity New Jersey may be forced to back away.
If so, does that mean the Kings or even the Islanders are back in play?
And how do other G.M.'s feel about Lamoriello obviously circumventing a collective bargaining agreement they are supposed to support in order to keep player salaries down and create a more level playing...ice? And will the Devils and Kovalchuk's agent Jay Grossman be fined for all of this?
Kovalchuk May Have to Take Less Money to Stay in New Jersey
After the nice press conference and Kovalchuk extolling the virtues of the area for his family and of the team for himself, it would be embarrassing for him to have to head elsewhere. On the other hand after counting up all that money it may be hard to accept less if that's what he'll have to do now to stay in New Jersey.
"Ilya is excited to be continuing his career with New Jersey and knows first-hand the team's dedication and commitment to winning," Grossman had said Monday when the signing was announced. One has to wonder if that's still the case.
The NHLPA has until Monday, July 26 to grieve the NHL"s decision.
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