August 1, 2010
Has Precedent Been Established in the Case of Ilya Kovalchuk’s Contract?
In less than a week, we will have an answer in the case of the NHL vs. The New Jersey Devils in regard to the Ilya Kovalchuk contract.
The case will be heading to an arbitrator within the next few days.
The arbitrator will decide if the 17-year, $102 million contract was within the rules of the current collective bargaining agreement.
If the arbitrator, Richard Bloch, decides in favor of the NHL, the contract will be voided and Kovalchuk will become an unrestricted free agent.
If Bloch decides in favor of the Devils, the contract will be approved and Kovalchuk will be a Devil until he is 44 years-old.
The NHL argues that the contract circumvents the current CBA. Their point being that the contract was written in a way for the Devils to absorb a reasonable salary cap hit of $6 million over the 17 years of the contract while knowing that Kovalchuk will never play out the term of the contract.
The problem with the argument is that there may already be a precedent set with previous approved contracts.
The Vancouver Canucks awarded a 12-year extension to Roberto Luongo, locking him up until age 42. Chicago handed a contract to Marian Hossa that pays him until age 42.
The Philadelphia Flyers signed Chris Pronger to a deal that would see him playing until right before his 43rd birthday. All these contracts were structured in a manner similar to the Kovalchuk contract.
Very few people think that Luongo, Hossa, and Pronger will play out the lives of the contracts they signed, yet the NHL approved all their contracts.
Luongo’s deal ends up with $1 million in his final years, Hossa’s deal is for $750,000 in the final years and Pronger’s stand to make $525,000 in the final years.
Kovalchuk’s contract is in the same ballpark, he would see $550,000 in the last five years of the deal. Why did the NHL bristle at the Kovalchuk deal and not any of the others?
One thing is for certain, this loophole will close when the new CBA is hammered out after the 2011-2012 season ends. Gary Bettman has been made to look foolish in these deals and that cannot sit will within the NHL offices.
The NHLPA must know that they now have a bargaining chip when it comes time for the new CBA. What will the NHL give up to tighten up the language on this matter?
My guess is that the NHLPA will play hardball on this one, holding out on the league for a significant allowance before changing the CBA language.
Read more NHL news on BleacherReport.com
Related posts:
- Ilya Kovalchuk Arbitration Hearing Concludes…And The Winner Is?
- Arbitrator In Kovalchuk Case Must Rule in Favor of New Jersey Devils
- Ilya Kovalchuk: Kovalchuk a Free Agent After NHL Wins Arbitration Hearing
- Ilya Kovalchuk Contract: Will It Be Approved?
- Finally! Ilya Kovalchuk Deal Accepted By The NHL
Tags: Been, Case, Contract, Established, Ilya, Kovalchuk's, Precedent
