Thread: Kovalchuk part V, The NHL Strikes Back, NHLPA files Grievance (All Discussion Here )

Originally Posted by Len-Det64

According to the author once this process has been started by the league declaring a contract as CBA circumvention there is no allowance for the Devils and IK to just go back and reconstruct the contract. There are some pretty specific outlines and guides that need to be followed to resolve the issue(s).

That's seems to be pretty harsh.

So basically he is saying that the league has rejected the contract on the basis that it is trying circumvent the CBA. The NHLPA has 5 days to decide if they are going to protest the decision. If the NHLPA does not protest the decision then the contract becomes null and void and Bettman decides what penalties or fines he wants to impose on the Devils for their infraction. On top of that IK becomes a FA to negotiate a new contract with whomever he wishes.

If the NHLPA decides to formalize a protest then the case goes to arbitration. (This is where it can get slippery and tricky) If the arbitrator makes a decision in favor of IK and the Devils then no other action will be taken other than future contracts could exploit this loophole further. If the arbirator makes a decision if favor of the league then it goes back to Bettman, the contract becomes null and void. ettman decides what penalties or fines he wants to impose on the Devils for their infraction. On top of that IK becomes a FA to negotiate a new contract with whomever he wishes.

This doesn't look good for NJ.

If it goes in favor of the NHL, NJ is screwed. As Quisp pointed out Bettman will have no choice but to hand out at least $1 million fine which counts against the cap for NJ. If NJ wanted to sign Kovi at anything similar to his current contract (ie. raising the last few years of salary or reducing the length) the cap hit is sure to go to near $7 million. Add the $1 million penalty and NJ is in cap hell.

Originally Posted by zebehm

Could, but won't. That would force him to void their Cup win.

The blog sure makes it sound like the NHL has a great case because the circumstantial evidence, which is all it needs, is heavily in their favor. It also sounds like if this deal is found to circumvent the cap, then Bettman has no choice but to give at least a $1 million penalty.

I don't think this will be resolved like exactly like the CBA dictates it should. I think there will be a compromise the Devils and NHL both agree to. It'll sure be interesting to see it all play out.

Yeah...pretty much. I think the cap hit goes up to 6.5 or 7. Reasonable still...but this really just points out how horrible the cba is. ANARCHY!!!!!!

Originally Posted by jerseydevil

Yeah...pretty much. I think the cap hit goes up to 6.5 or 7. Reasonable still...but this really just points out how horrible the cba is. ANARCHY!!!!!!

Unfortunately it took this contract to break the camel's back when there are several over the last couple years that warranted this action.

Originally Posted by Len-Det64

According to the author once this process has been started by the league declaring a contract as CBA circumvention there is no allowance for the Devils and IK to just go back and reconstruct the contract. There are some pretty specific outlines and guides that need to be followed to resolve the issue(s).

That's seems to be pretty harsh.

So basically he is saying that the league has rejected the contract on the basis that it is trying circumvent the CBA. The NHLPA has 5 days to decide if they are going to protest the decision. If the NHLPA does not protest the decision then the contract becomes null and void and Bettman decides what penalties or fines he wants to impose on the Devils for their infraction. On top of that IK becomes a FA to negotiate a new contract with whomever he wishes.

If the NHLPA decides to formalize a protest then the case goes to arbitration. (This is where it can get slippery and tricky) If the arbitrator makes a decision in favor of IK and the Devils then no other action will be taken other than future contracts could exploit this loophole further. If the arbirator makes a decision if favor of the league then it goes back to Bettman, the contract becomes null and void. Bettman decides what penalties or fines he wants to impose on the Devils for their infraction. On top of that IK becomes a FA to negotiate a new contract with whomever he wishes.

This doesn't look good for NJ.

No kidding. I have to think that IF the ruling came down against NJ, they wouldn't rework the contract and they might just send him on his way. (Unless I am misinterpreting, and they would be forced to restructure) The potential for up to a $5 mil penalty that would be assessed to their cap, and the prospect of having to take an additional $1-$2 mil cap hit to restructure the contract is not a good combo.

Originally Posted by HockeyMariner88

No kidding. I have to think that IF the ruling came down against NJ, they wouldn't rework the contract and they might just send him on his way. (Unless I am misinterpreting, and they would be forced to restructure) The potential for up to a $5 mil penalty that would be assessed to their cap, and the prospect of having to take an additional $1-$2 mil cap hit to restructure the contract is not a good combo.

I hadn't even really thought it out that far yet. If that were to happen I highly doubt that NJ would be able to negotiate another contract with IK they would be in cap hell for at least next year and lose some additional players. This could also bring IK crawling back to the Kings and negotiations putting the Kings in the driver seat.

edit: A 15 yr. 100M contract comes out to 6.68M cap hit. Not out of the realm of possibilities for NJ if the fine is only 1M towards the cap.

Originally Posted by Len-Det64

I hadn't even really thought it out that far yet. If that were to happen I highly doubt that NJ would be able to negotiate another contract with IK they would be in cap hell for at least next year and lose some additional players. This could also bring IK crawling back to the Kings and negotiations putting the Kings in the driver seat.

I think IK will seek a 1-2 year deal elsewhere before coming back to negotiations with the Kings. If he does come back though, you can bet that DL isn't going to be offering him something he'll enjoy.

Originally Posted by Len-Det64

edit: A 15 yr. 100M contract comes out to 6.68M cap hit. Not out of the realm of possibilities for NJ if the fine is only 1M towards the cap.

The problem isn't the future years. The problem is this year if the fine is imposed for this upcoming season. They're already over the cap with the deal as-is, and they have an incomplete roster. If Kovalchuk winds up costing them ~$8M in cap space for this year (original $6M + ~$1M to make it Bettman-friendly + a minimum $1M fine -it could be $5MM)... heh.

Originally Posted by Len-Det64

I hadn't even really thought it out that far yet. If that were to happen I highly doubt that NJ would be able to negotiate another contract with IK they would be in cap hell for at least next year and lose some additional players. This could also bring IK crawling back to the Kings and negotiations putting the Kings in the driver seat.

edit: A 15 yr. 100M contract comes out to 6.68M cap hit. Not out of the realm of possibilities for NJ if the fine is only 1M towards the cap.

Being that Bettman should realize that he and the NHL pretty much brought this on themselves, I would anticipate he'll probably lean toward the minimum penalty of $1 mil. Should being the keyword there though. While a 15 yr $100 mil contract is still an affordable cap hit, the question then becomes how can they structure the new deal to appease the NHL? How low will the NHL tolerate them going on the back end of that 15 yrs? They can't push the envelope again and risk potential for another denial and penalty, but if they don't front load it enough, will they even be able to talk Kovalchuk into signing it? I think IK can kiss his long term deal goodbye for this year at least.

alright i just got out of a jacuzzi / pool from the past 3 hours and work before that....

can someone fill me in ?
is kovi back to a free agent or no?