NHL fines Devils for circumventing cap
The National Hockey League has fined the New Jersey Devils for their attempt to circumvent the League’s salary cap in their original effort to sign forward Ilya Kovalchuk.
The Devils have been charged a $3 million fine. In addition, the club is being forced to forfeit their third round pick for the 2011 NHL entry draft as well as a first round pick from one of the next four drafts. The Devils are to inform the League which year they will be forfeiting the pick at the conclusion of that season's Stanley Cup Final.
The Devils were deemed to have broken League rules after they attempted to sign Kovalchuk to a 17-year $102 million contract. The contract violated the League’s collective bargaining agreement by circumventing the salary cap. In the end New Jersey managed to sign Kovalchuk to a lucrative 15-year $100 million contract, which fit in the frame work of the CBA.
It was initially unclear how the League would deal with the indiscretion. Many experts assumed that a fine would be forthcoming. However, the forfeiting of draft picks makes the punishment much worse.
In the ‘new’ NHL draft, picks have become the lifeline of each franchise as more and more youngsters are cracking line-ups throughout the League. Moreover, the Devils have always been a team that was primarily built through the draft and the loss of two important picks could put a dent in the future of the franchise.
The League also announced in the summer that they would be looking into other long-term contracts. The NHL is currently investigating the Boston Bruins and their contract with centre Marc Savard, as well as the Vancouver Canucks and their 12-year deal with goaltender Roberto Luongo. The League has yet to rule on the contacts, however if they are found to be in violation of the CBA, the penalty handed down to the Devils can certainly be considered precedent.
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