Why the New Jersey Devils Were Prevented From Signing Ilya Kovalchuk

July 22nd, 2010 by Jabber Head Leave a reply »
By now (if you wanted to or not) you have heard about Kovalchuk signing his insanely long 17-year, $102 million contract, which was denied today by the NHL deputy commissioner Bill Daly: “The contract has been rejected by the League as a circumvention of the Collective Bargaining Agreement. 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 League will have no further comment on this matter pending further developments.” More information can be found in the CBA, section 26.3 titled “Circumventions.” Basically the league is saying that because NHL contracts are averaged out (ex. a 25 million contract/five years = $5 million a season) that a contract of $102 million over 17 years breaks down to less cap hit each year then a contract of a $102 million over 10 years, giving (in this case) the Devils more spending money each year.

While it is in the Devils' p ...

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