August 10, 2010, Ilya Kovalchuk voided contract story for Metro NYC Newspaper
US – Tuesday, August 24
Devils will have to try again
Arbitrator rules Kovy's deal violates CBA
PUBLISHED AUG 10, 2010
The Ilya Kovalchuk saga continues.
Arbitrator Richard Bloch ruled yesterday that the 17-year, $102 million contract Ilya Kovalchuk signed with the Devils violated the NHL’s Collective Bargaining Agreement.
In a statement posted on NHL.com, NHL VP Bill Daly praised Bloch’s decision. “We want to thank Arbitrator Bloch for his prompt resolution of a complex issue. His ruling is consistent with the League's view of the manner in which the Collective Bargaining Agreement should deal with contracts that circumvent the salary cap,” said Daly.
The National Hockey League’s Players’ Association released a statement Monday night that expressed its frustration with Bloch’s verdict.
“The NHLPA is disappointed with the Arbitrator’s ruling to uphold the NHL’s rejection of the contract between the New Jersey Devils and Ilya Kovalchuk,” the statement read. “The NHLPA is currently reviewing the decision and will have no further comment at this time.”
The 27-year-old Kovalchuk is an unrestricted free agent once again. He and agent Jay Grossman can negotiate a new contract with the Devils. Other options include possibly signing the reported 15-year, $80 million offer he received from Los Angeles, or retest the marketplace. The Devils have $1.232 million while Los Angeles has $3.2 million in available cap room according to the website capgeek.com.
The league and NHLPA presented arguments to Bloch last week. The NHL argued that the Devils and Kovalchuk knew that he would not play the full 17 years of the contract while NHLPA’s stance was that similar contracts had been allowed in the past. Had the pact been accepted and Kovalchuk played out the 17 years, he would be 44 when it expired. Devils President and GM Lou Lamoriello attacked that belief in a statement.
“We have reviewed and respect Arbitrator Bloch’s ruling in the Kovalchuk matter. We also note and appreciate his finding that nothing in his opinion should be read as suggesting that either the club or Ilya Kovalchuk operated in bad faith or on the basis of any assumption other than the standard player contract was fully compliant with the CBA. That has been our consistent position throughout,” Lamoriello said.
“While we do not currently have a contract with Ilya Kovalchuk, discussions have resumed and we are hopeful that a contract will be reached that meets with the principles in Arbitrator Bloch’s award and the NHL’s approval.”
When the Devils announced the pact in mid-July, Lamoriello recognized that the contract could receive criticism from his peers but pointed out that the franchise has never had the opportunity to acquire a player of Kovalchuk’s caliber and that the organization followed the CBA to the letter-of-the-law.
“There is nothing that we have done wrong. This is within the rules. This is the CBA. There are precedents that have been sent,” Lamoriello told reporters. “Because it’s legal, this is something that ownership felt comfortable doing.”
Last week’s hearing could be the first salvo in a protracted battle between the NHL and the NHLPA when the CBA expires after the 2012 season. Both sides had worked in conjunction following the lockout but it is believed that the league is going to want the so-called retirement contract and the non-penalized dumping of onerous contracts to minor league affiliates loopholes closed. If that is the case, the NHLPA is going to demand concessions on other aspects of the CBA.
posted by Denis P. Gorman at 7:51 PM
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