Devils deal league a front-loaded question
The waiting game regarding where NHL superstar Ilya Kovalchuk might sign ended Monday with his return to the New Jersey Devils, but the league’s subsequent rejection of the 17-year, $102 million contract on the grounds of salary cap circumvention places his status with the Devils into limbo.
It’s believed the league’s grounds for rejection was the length of the deal, which would expire at the end of the 2026-27 season (when Kovalchuk would be 44 years old), plus the extreme front-loading of the deal, in which Kovalchuk would collect $95 million of the $102 million contract in the first 10 years.
Several options are available to resolve this situation. The Devils could meet with Kovalchuk and his agent, attempt to restructure the deal and then re-file it with the league. Another is the NHL Players Association can file a grievance on Kovalchuk’s behalf within five working days of the league’s rejection, which would send the matter to arbitration.
In the meantime, as per the official statement on the matter by NHL deputy commissioner Bill Daly, Kovalchuk cannot play under this contract nor is he entitled to any of the contract’s rights and benefits.
That doesn’t mean Kovalchuk returns to the unrestricted free agent (UFA) market, at least not yet.
If he and the Devils are unable to agree on restructuring the deal and/or if they and the PA lose out in arbitration if it goes that far, his contract will be declared null and void.
On the other hand, if the arbiter rules in favor of Kovalchuk and the PA the league will have no choice but to accept the contract.
Given that the length and front-loading of the deal is why the Devils got a cap-friendly hit of $6 million per season it’s probably safe to assume Devils general manager Lou Lamoriello hopes this matter goes to arbitration.
In a recent interview with NJ.com, Lamoriello appeared to rule out the possibility of restructuring and resubmitting the contract, saying it was now in the hands of the player and the PA.
It ‘s ironic Lamoriello, a hardliner against salary escalation and one of the league’s chief negotiators with the PA during the last lockout, would have to rely on the NHLPA in hopes of making this contract stand.
Prior to the league’s rejection of the contract, Lamoriello came across as hypocritical in defending the deal. In an interview with The Bergen Record he claimed he rolled his eyes over the lengthy deals signed by New York Islanders goalie Rick DiPietro and Washington Capitals forward Alexander Ovechkin yet defended the Kovalchuk deal by saying his club did nothing wrong.
Regardless of the outcome of this situation it could be considered an early skirmish in what might be another labor war between the league and the PA.
It’s believed league commissioner Gary Bettman is no fan of these contracts, which several teams have utilized in the recent past to sign or retain star players.
Since 2007 the Philadelphia Flyers (Daniel Briere and Chris Pronger), Calgary Flames (Miikka Kiprusoff), New York Rangers (Scott Gomez), Detroit Red Wings (Henrik Zetterberg and Johan Franzen), Tampa Bay Lightning (Vincent Lecavalier), Boston Bruins (Marc Savard),Vancouver Canucks (Roberto Luongo) and Chicago Blackhawks (Marian Hossa) employed long-term, front-loaded deals as a means of getting a lower cap hit.
Many of those deals were investigated by the league but were allowed to stand because it couldn’t be proven they constituted salary cap circumvention under the terms of the CBA. Still, Bettman reportedly warned general managers last year about pushing these deals too far.
If this goes to arbitration, the league could argue Kovalchuk probably won’t be an active player by the final years of his contract. However, given the growing number of active players in their late 30s and early 40s (42-year-old winger Mark Recchi will be returning with the Boston Bruins next season) that argument might not hold up; they have no way of proving Kovalchuk won’t be playing in the final seasons of the deal.
Should the Devils and Kovalchuk lose out in arbitration it could send them back to the bargaining table in hopes of working out a new mutually beneficial contract which will have the league’s blessing.
That might not be easy as the Kovalchuk camp was reportedly seeking a 10-year, $100 million deal, which the Devils probably won’t be able to afford without front-loading the contract, and even then it might prove too much of a salary cap hit.
If Kovalchuk and the Devils fail to reach an accord, his options could be the Los Angeles Kings – GM Dean Lombardi recently said he’d be willing to revisit negotiations if the opportunity presented itself – or St. Petersburg of Russia’s Kontinental Hockey League.
Don’t expect this situation to have much impact upon the current free agent and trade market. There wasn’t much quality depth in this summer’s UFA market – currently Lee Stempniak, Maxim Afinogenov and Marty Turco are the best available unsigned players – and a high number of teams with limited cap space meant a limited number of potential destinations for this summer’s free agents.
Those factors affected the market long before Kovalchuk was signed and will continue to do so regardless of his current status.
