That was my first impression as well. However, it might not be that simple. Here are some points to consider, although I'm sure most of you have already done so.
1) The NHL would very much like to keep Kovalchuk in the NHL, due to his high talent level and subsequent drawing power. The Devils could certainly use his high profile to fill the seats. The league would like to see better attendance in NJ.
2) The NHL would not approve this latest contract as submitted. This is daunting for NJ, given that the league and team met ten days ago to iron out details on what was and was not acceptable.
3) For whatever reason, no other team seemingly is in the picture. L.A. is either out by its own choice, or Kovalchuk really does not want to be on the West Coast. My guess would be, given the involvement of the league office in trying to "assist" NJ, that the league has actually been in contact with the Kings and were told, "we're going in a different direction". In other words, I can't see the league "assisting" NJ if there were other teams still in the hunt.
4) If Fehr is really involved at this point, this is about more than just Kovalchuk. As others have said, this could be a preliminary bout to the next CBA negotiation. Both sides are under pressure to resolve this, but given that camps open in three weeks, I believe that the league is under a greater weight to resolve. After all, there apparently continues to be a hold on other transactions pending this resolution. Other teams will start putting pressure on Bettman to resolve.
5) I feel that the league is involved at this point, because they really don't want the bad publicity of outright rejection of another contract.
So is a compromise forthcoming? Will the league and NJ be able to iron something out? What if NJ has to bend a bit too far, and Kovalchuk / Grossman decide it's no longer good enough?
Although I was leaning the same way as Yog S'Loth earlier, now I'm not so sure. I may have argued myself the other way.



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eyesk8r
Thank you for doing in 1 sentence what the NHL/NHLPA need at least 2 more days to fumpher around with. 

