July 26, 2010, NHLPA files grievance against NHL for its voiding of Ilya Kovalchuk contract news story for HockeyPrimeTime.com

NHL and NHLPA to butt heads over Kovalchuk

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Written by Denis Gorman

Monday, July 26, 2010 15:32

The National Hockey League and the National Hockey League Players’ Association are headed for their first battle since the 2004-05 lockout. It could be an uncomfortable preview of what is expected to be a protracted labor negotiation in 2012. The NHLPA filed a grievance against the league Monday afternoon in response to the NHL’s voiding of Ilya Kovalchuk’s contract. The NHLPA stated that it “filed a grievance disputing the NHL's rejection of the Standard Player Contract between the New Jersey Devils and Ilya Kovalchuk. Under the terms of the CBA, the NHLPA and Mr. Kovalchuk are entitled to an expedited resolution of this matter. The NHLPA will have no further comment until this matter has been resolved by an Arbitrator.” The corresponding move was expected after the league rejected the 17-year, $102 million contract last Wednesday. The league has frowned on the heavily front-loaded contracts that have become the norm for elite players in recent years. The players like the deals – they are well-compensated for their efforts and know where they will ply their trade late into their careers. Organizations benefit from these deals, called “retirement contracts,” because it allows them to keep their cornerstone players under contract long-term and minimize the salary-cap impact by reducing actual salary in the final years of the contract. “The contract has been rejected by the League as a circumvention of the Collective Bargaining Agreement," NHL Deputy Commissioner Bill Daly said last week in a statement that was posted on NHL.com. "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 Devils responded to the league’s action by releasing a statement late last Wednesday afternoon. General manager Lou Lamoriello said the organization was “extremely disappointed that the NHL has decided to reject the contract of Ilya Kovalchuk. The contract complies with the terms of the Collective Bargaining Agreement.” The matter will now go to a mutually agreed upon arbiter. If the arbiter rules in favor of Kovalchuk, the league must honor the contract. However if the arbiter sides with the league, Kovalchuk and the Devils could re-work a deal that meets with the league’s approval. He could also opt to become a free agent again. If Kovalchuk determines that is his best option, an interested observer could be Los Angeles Kings general manger Dean Lombardi. Lombardi had put forth offers to Kovalchuk when the left wing visited the organization before he signed with the Devils. Lombardi did not comment when asked if he was going to monitor the arbitration hearing. You can follow us on Twitter @DenisGorman http://www.hockeyprimetime.com/news/headlines/nhl-and-nhlpa-to-butt-heads-over-kovalchuk