How did Gretzky sign for 21 years with Edmonton?

Question

I know that Gretzky signed a 7-year contract with the Racers in the WHA but then they sold him to Edmonton after 8 games. Midway through the season, Edmonton signed him for 21 years. How is that possible if he was already under contract with the Racers? I understand that the Racers sold him but dosen't that mean that Edmonton had to oblige by the 7-year contract? Or was the contract nullified when he was sold?

Answer 1

It's called an EXTENSION. They EXTENDED the contract. Although I'm not sure how the WHA handled the contracts. They would have to honor his contract, but they can always add to it, or renegotiate it. They just can't cut his pay without him agreeing to the new contract.

Answer 2

The contract that Gretzky signed with Nelson Skalbania was a personal services contract, not a hockey contract (these were allowed in the WHA but not the NHL).  That contract became void with his sale to Pocklington, similarly, the 21 year contract he signed with Pocklington was also a personal services contract and was voided by the NHL when Edmonton entered the NHL (at which time Wayne's contract was re-worked to NHL standards at the time which meant it was guaranteed,  and was transferable)