Arbitrator upholds NHL void of Kovalchuk contract
If you want to chat up the NHL news of the day, this is your thread. What now for Kovalchuk? Two fewer years and a higher cap hit, or...?
(I can think of 100 reasons (okay, maybe five) why this decision was upheld. Kovy/Devils partisans who say "rules are rules, this isn't fair" probably haven't read enough of the CBA, and definitely don't gather that ambiguous clauses - such as those in the CBA - are made to be interpreted as situations warrant.) The CBA left room to draw the line somewhere; sounds like the arbitrator buys the NHL's line.
almost 2 years ago
Dominik
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Meanwhile, on the escrow issue
I’d recommend this post on escrow by Tyler Dellow. It’s not a legal reason to reject Kovalchuk’s deal, but it is a reason for NHLPA rank and file to think twice about fighting for deals like Kovalchuk’s.
Overall NHLPA player compensation is automatically tied each year to revenues — that’s what escrow (which players don’t seem to understand much) — is all about. It’s like budget billing on your utility bill — trying to keep your monthly/quarterly total in line so you’re not hit with a big bill (or, if revenues are higher than expected, a big bonus) at the end of the year/season.
So when a player like Kovy takes up front money for himself in exchange for cheap age 40+ years he probably has no intention of playing, it actually increases the amount of money withheld from his union brothers via escrow. If I were a player, I’m not sure I’d go to bat for him on that.
Lighthouse Hockey: More defensemen than we know how to spell.
Looking at the NHLPA's arguments
It seems like they halfheartedly fought at arbitration for Kovy.
Also of note, the NHL is investigating Hossa and Luongo’s contracts too now.
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Contributor to Lighthouse Hockey not sure if I'm the Sniper or the Enforcer.
by Mark D on Aug 10, 2010 5:52 AM EDT up reply actions 1 recs
Kinda like the Prop 8 proponents in California....
… but enough of that.
I think it MUST have been difficult for the NHLPA to argue in favour of an interpretation that clearly and significantly hurts the majority of the PA members.
Once it became apparent (and it would have, quite early in the hearing) that the Arbitratoir was going to examine the SPC broadly, the PA’s arguments that “if it ain’t expressly forbidden, it’s allowed” went pretty much out the window. Especially if the League conceded that there was no INTENT to circumvent and hung its hat on the EFFECTIVE circumvention, then how could they possibly argue that the overall effect of the deal wasn’t a circumvention.
Once you eliminate what is REALLY bad then the PA really had no argument to make.
by Nova Scotia Isles Fan on Aug 10, 2010 10:14 AM EDT up reply actions
It was interesting that the NHLPA’s only argument was that no single part of the clause was prohibited by the CBA. Basically they stood on the hope, “The CBA draws no specific line, so you can’t say the line is here.” Yet they acknowledge a contract into a player’s 70s is past that line.
Lighthouse Hockey: More defensemen than we know how to spell.
escrow aside!? never thought I would need to say that!
it looks like Kovalchuk wants $10 million/10 years, which the Devils essentially tried to give him dispite not having close to that much cap space available. It doesn’t look like anyone with that kind of money available under the cap is willing to part with it. What next for Ike? The KHL or maybe a 1-2 yr. max money contract with the willing?
Where we gonna spend our money?
my feeling on a new deal
Kovi will likely re-sign with the Devils (I’d say it’s 80% or better chance); I think that they will lop the last four years off the deal and jiggle the numbers at the end to keep those last two hits around the anticipated league minimum – I could see two years of $750K at the end, and the middle big years sticking around $11 million. A rough estimate:
6.0, 6.0, 11.25, 11.25, 11.25, 11.25, 11.25, 10.25, 8.0, 6.0, 3.0, .750, .750… 13 years, $97 million total, cap hit of $7,461,538.46. The deal runs until he’s 39, which is reasonable; saves the club on the cap hit; and only costs Kovi $5 million bucks. I think that the league would be more inclined to let a deal like this pass.
My latest contract is for 31 years.
I could see that
I do wonder if they’ll have to change those first two years though. Even in your revised proposal they stand out as an end-around on the 100% clause.
Lighthouse Hockey: More defensemen than we know how to spell.
true
And there would be no operational difference if they took the first six years ($57 million) and adjusted the difference to exactly equal the largest drop in the revised contract ($3 mil)… so the contract could also go 8, 8, 11, 11 and then the other numbers would fall in line behind. It’s clear that the arbitrator’s ruling only points out the total effect of the provisions rather than any one provision – in effect, they can do it but not overdo it.
My latest contract is for 31 years.
Realistically, if Kovy’s deal wasn’t voided, who was to stop players from signing till they were 45, 47, or even 54? Line had to be drawn, good to see it upheld.
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Contributor to Lighthouse Hockey not sure if I'm the Sniper or the Enforcer.
The KHL is calling.
I think that the most interesting thing about this whole deal is that the KHL hasn’t been mentioned once, from what I have heard, regarding a contract since the Devils began their Wang shrinking contract negociations.
Part of me believes that this case could happen a little more often in the upcoming off seasons. However, I’m all for the idea that the KHL take on a player like this. If his poorly balanced scale of pay can’t be satisfied within the NHL let him go to mother Russia. They can only serve as an example of what happens when you let rampant corruption and structureless contracts take hold of your league. Part of me feels like an impromptu prop bet be set on this site for humor purposes. I would give the KHL 6 years from the time they take on a silly contract like that one before at least one more team folds if not a reorganization of the league takes place. Let the players witness their actions played out in what is supposed to be a parallel league.
It is official, I am moving back to Long Island in about 2-3 weeks.
However, I’m all for the idea that the KHL take on a player like this.
Not to re-open our own Kovalchuk debate, but I agree. Anyone who wants to sink his own team’s payroll for the next decade can kiss off to the KHL. If it were a complete player I’d at least consider it longer, but Kovalchuk has had the better part of a decade to prove he’s something that he’s…not.
Lighthouse Hockey: More defensemen than we know how to spell.
No surprise
As others have said, the contract length was too long. Now we go back to the drawing board and see if kovy wants money or a cup.
Money: Kovy goes to the khl for 3-4yrs at 14mil/yr
Cup: Kovy takes 8-10mil/yr for 8-10yrs from most likely the kings or devils
I say he’ll get this done with the devils quick as long as he isn’t going for a giant contract again that’s more then 10yrs long.
Go isles or Go home.
I found the ruling language pretty sensible
A nice synopsis of the 20-page ruling at Puck Daddy. What’s amazing is Quisp at Jewels from the Crown pretty much laid out all of these reasons for voiding the contract, yet almost all the MSM claimed it would be a “shock” if the NHL won, and that the NHLPA was expected to win, “sources said” (ahem, player agent sources).
Personally, I thought it might go either way and wouldn’t call either route a shock. They have called a spade a spade.
Lighthouse Hockey: More defensemen than we know how to spell.
I agree with ruling
it would have led to crazy contracts with guys grandkids getting a paycheck in 2101
I believe that he is headed to the KHL. If he doesn’t sign with the Devils for something he is going to the KHL. He has demonstrated enough understanding of team finances to win a trip to the KHL. It would appear that the NHL cares too much about staying around for a couple more years than to sacrafice itself to the ego and irrational demands of a diva. I say that they should let him sink another franchise in Russia.
It is official, I am moving back to Long Island in about 2-3 weeks.
by metalcoconut on Aug 10, 2010 10:06 AM EDT up reply actions
The Devils were going to have to make a roster move anyway even with the 6 Million dollar cap hit. They might have to trade a 2nd player to get under enough. Maybe the Isles can deal Bruno (750K hit for this season and then RFA) for one of the more expensive Devils.
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Contributor to Lighthouse Hockey not sure if I'm the Sniper or the Enforcer.
how about
Bruno, a first round draft pick and maybe someone like Trent Hunter for Volchenkov?
In Garth we trust!
We'd do that,
But I doubt they would give up a new shutdown hard hitting d-man for an average 3rd liner, a even with cap problems. It would be weird to trade a guy they just signed. I read people they’d take offers for were langenbruner, rolston, white, and lower end guys.
Go isles or Go home.
three problems
I don’t think Snow will trade a first rounder again
Hunter isn’t going anywhere
Volchenkov isn’t going to be traded right after being signed
Wheel of Location, Turn Turn Turn. Tell us the location that we will play.
Contributor to Lighthouse Hockey not sure if I'm the Sniper or the Enforcer.
Devils
My money’s still on the Devils, though I wonder if it will be Lou or the owner pushing it. Seems like Kovy wants too much money, period, and Lou is smarter than that. But it won’t be his team anymore when the bill comes…
Lighthouse Hockey: More defensemen than we know how to spell.
New info
Reports from somewhere in the devils organization say the devils may not even try and resign kovalchuk now. Interesting stuff. I guess they really don’t want the big cap hit but you can’t blame them. They already have to move at least 1 person to accept his contract under the cap, and with a bigger cap hit from a newer contract, their hopes of keeping parise would drop drastically unless they move even more people around or off the team next year. I’d say Kovy’s going to the khl or the kings now. I’m going 50/50 chances. I honestly don’t see the devils signing him now with this dilemma at hand.
Go isles or Go home.
Which goes with my argument
If the Devils could have afforded Kovy without the 6 BS years at the end, they would have given Kovy a shorter contract to begin with.
Dominik signed me for 20 years, and all I got was a press conference and a voided contract...
Contributor to Lighthouse Hockey not sure if I'm the Sniper or the Enforcer.
Just out of curiosity, as I’ve heard nothing of the sort, where’d you hear that?
Giving Kovalchuk more money would affect the negotiations with Parise, but he’s not going to be as hard for the Devils to keep as some seem to think. If Washington can carry a top line worth $21m and Pittsburgh can swing two guys making over $8.5m apiece and remain competitive, there’s no reason the Devils couldn’t do it also.
Playing Devils' advocate since 1982.
Devils could do it and have parise and kovy,
But they would have to let langenbruner go next year while trading away a few more big salaries and bringing on some $1mil/yr contract players to take a few starting roles. They could do it, but it won’t be near smart for them to do as an all around team or highly likely for them to do.
On the news, I heard it from a tri-state sports network channel on tv. I believe it was MSG or SNY.
Go isles or Go home.
Interesting. Everything I’m hearing has Lou hard at work trying to bang out another contract, but none of that is substantiated either.
Generally, when it comes to Lou, if you don’t hear anything it means he’s involved.
As to Langenbrunner, it’s hard to say. I think he damaged his reputation in NJ a little last year with his semi-public feud with Lemaire, but he’s also had career years the past two years. If he follows up with another stellar year he may price himself out of NJ, but then other teams may be wary of signing an at that point 35+ year old after a couple of good years coughBrianRolstoncough.
Not saying it’d be easy, but it can be done. There are some kids in the system on the verge of breaking through and I think Lou is counting on them to.
Playing Devils' advocate since 1982.
If kovy ever goes to the devils now,
it’s just going to be a contract fiasco. The devils will be taking a $7mil/yr+ cap hit to afford him and then all the things that go with it for this year and next to make the cap while keeping a decent all around team. I’m just saying, if they get kovy, don’t expect parise and langenbruner both on the devils next year. It could happen, but I don’t see it as a likely situation.
Go isles or Go home.
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