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NHL Decision on Kovalchuk Contract Sets Benchmark for Future Deals
The offseason for Ilya Kovalchuk has been full of ups and downs, for his bank account at least. The winger inked a 17-year, $102-million contract in July only to have that revoked by arbitrator, Richard Bloch. The hearing was necessary as the NHL rejected the deal on the same day Kovalchuk and the Devils officially came to terms.
The league argued that the Devils were attempting to circumvent the league's salary cap by spreading out the money over such a long period of time as to decrease the per year amount.
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The way the deal was structured, the Devils were to pay the winger $6 million in his first two seasons, $11.5 million for the following five seasons, and then taper-off to $10.5 million, $8.5 million, $6.5 million and $3.5 million in single seasons before falling to $750,000 for 2021-22 and then $550,000 for the remaining six seasons, wrapping up in 2027.
Essentially, it brought the salary cap hit down to $6 million a season by placing $95 million of the payment in the first 10 years of the deal. Another point the arbitrator noted in his decision was that the contract was due to expire when Kovalchuk was 44, well past an expected age of retirement for an NHL player.
Despite the decision, it hasn’t stopped New Jersey from trying to make another long term deal with the Russian sniper. The latest deal on the table is apparently in the range of 15 years and $100 million. The league has five days to approve or reject the deal, but the popular opinion around the league is that this contract too will be rejected as they have again tried to dance around the rules and regulations of the salary cap.
It has left many around the league wondering what, if any, discipline will be laid against New Jersey for these violations. The way the arbitrator ruled makes a penalty doubtful as he found no intent of circumvention, but he did support the NHL's original contract rejection.
What this ruling will do is set a benchmark for long-term contracts, but more importantly, may spur the league to look into other recently signed deals that appear to be front-loaded. Players like Vancouver’s goalie Roberto Luongo, Chicago Blackhawks winger Marian Hossa, Philadelphia Flyers defenceman Chris Pronger and Boston Bruins centre Marc Savard have all signed similar contracts that may now be reviewed.
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