Ilya Kovalchuk’s Contract Ruled Invalid by Arbitrator
For the second time this summer, Ilya Kovalchuk is an unrestricted free agent.
On Monday, independent arbitrator Richard Bloch had ruled in favour of the National Hockey League, rejecting Kovalchuk's 17-year, US$102-million contract with the New Jersey Devils.
Despite the recent ruling, the New Jersey Devils released a statement on Monday night saying they respected the decision and remain optimistic that they will be able to sign the talented Russian winger.
"While we do not currently have a contract with Ilya Kovalchuk discussions have resumed and we are hopeful that a contract will be reached that meets with the principles in arbitrator Bloch's award and the NHL's approval," said Devils president and general manager Lou Lamoriello.
The Devils reached an agreement on the original landmark deal with Kovalchuk on July 20, but the NHL ruled against the contract that same day believing the terms of the deal violated the salary cap. At the time, it would have been the longest deal in NHL history. A few days after, the NHL Players' Association filed a grievance disputing the NHL’s rejection of the contract.
On Monday night, the NHLPA said in a statement that it was it was "currently reviewing the decision and will have no further comment at this time." They also added that they were "disappointed with the arbitrator's ruling to uphold the NHL's rejection of the contract between the New Jersey Devils and Ilya Kovalchuk."
NHL deputy commissioner Bill Daly issued a brief statement saying that Bloch's ruling is "consistent with the league's view of the manner in which the collective bargaining agreement should deal with contracts that circumvent the salary cap."
The NHL strongly felt that the contract had gone too far by giving the Russian sniper $95 million over the first 10 years of the deal, but only $7 million over the final seven years, including a modest $550,000 per season over the final five years. With the Devils signing the 27-year-old Russian on those terms it would have reduced the cost against the salary to $6 million per year over the full 17-year deal.
There were also several questions raised on the duration of the contract, as it would carry through until Kovalchuk reached the age of 44, well past retirement age for most players.
There have been several similar "front-end-loaded" contracts in recent years where by adding extra years at low pay to the overall term of the deal has diminished the annual salary cap hit. However, the NHL has not rejected them.
Goaltender Roberto Luongo and the Vancouver Canucks signed a 12-year deal worth $63 million that pays a total of only $7 million in the final four years of the deal and coming to full term when Luongo turns 43. The Chicago Blackhawks and Marian Hossa also came to terms on a deal that would pay Hossa $62.8 million over 12-year term, taking Hossa to age 42, but only paying out $3.5 million over the last four years of the contract. Chris Pronger of the Philadelphia Flyers and Henrik Zetterberg and Johan Franzen of the Detroit Red Wings have also signed similar deals in recent years. However, compared to Kovalchuk’s contract, they did not taper off as sharply near the end of the deal nor were they as long.
Earlier in the season, in was rumoured the high scoring Russian sniper rejected a contract offer from the Atlanta Thrashers that was believed to be worth $101 million over 12 years. After failing to reach an agreement, the Thrashers then traded Kovalchuk to the Devils in February.
The Thrashers selected Kovalchuk first overall in the 2001 NHL Entry Draft. He has 338 goals and 304 assists in 642 career NHL games, including 41 goals and 44 assists last season split between Atlanta and New Jersey.
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