Devils fined by NHL over Kovalchuk deal
The NHL have fined the New Jersey Devils over the signing of Ilya Kovalchuck to a 17-year $102million contract that by-passed salary cap rules.
The Devils were fined $3million on Monday and forced to forfeit a first-round draft pick within the next four years and a third-round pick next year. The Devils, however, are still maintaining their innocence regarding the matter.
"We were advised of the ruling by the commissioner with respect to the Kovalchuk matter. We disagree with the decision. We acted in good faith and did nothing wrong. We will have no further comment,” Devils president and chief executive Lou Lamoriello said.
The NHL decided to discipline the Devils following the decision by arbitrator Richard Bloch to void the contract. Bloch ruled the 17-year contract, which would have paid Kovalchuck on $550,000 each of the last six-years, circumvented the NHL/NHLPA collective bargaining agreement.
The $3million fine will not count against the Devils’ salary cap.
The Devils will have the right to choose when they will forfeit the draft pick but must tell the league by the day after the Stanley Cup finals in that year. The Devils are likely to appeal the decision although no there is no official statement saying there is a right to appeal.
New Jersey and Kovalchuck eventually reworked the contract to 15 years and $100million.
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