National Hockey League: Could the Canucks want the league to move against Luongo contract?
A legal precedent was set when the Arbitrator Richard Bloch threw out the front loaded Ilya Kovalchuk deal. The league prevailed and it was ruled that long-term front loaded contracts are in violation of the collective bargaining agreement. While it’s certain that there won’t be any more contracts of that kind until the next CBA is formulated, there is the question about existing contracts that were similar to Kovalchuk’s but were accepted by the league.
There were difficult legal wrangles that prevented the league to act against them before, but now the league has an ace in the hole. The NHLPA used previously signed contract to argue that Kovalchuk’s deal was similar and thus should be accepted. This backfired when the Arbitrator retorted that the approval of those deals simply means that the league has been late or inconsistent in its response and not that those contracts were also acceptable. Richard Bloch and NHL’s deputy commissioner Bill Dally, both confirmed that the contracts were under investigation for breach of the CBA, more specifically its salary cap clauses.
One of those contracts would be the goaltender Roberto Luongo’s deal with the Vancouver Canucks. Luongo was signed to a 12 year contract that would see him playing into his forties. The $64 million contract pays Luongo around $7 million or 93.3% of his total salary for the first 9 years which would ‘backdive’ to just $1.2 million for the last three years of his contract.
The Canucks have confirmed that his contract is indeed under investigation by the league. General Manager Mike Gillis reported that they had complied with the league’s request for information regarding the Luongo contract and that the Canucks were awaiting further instructions from the league. The Canucks could possibly be brought before an arbitrator in much the same way Kovalchuk was and the outcome might be similar too.
So should the Canucks be worried? There is a very distinct possibility that the Canucks might actually be looking forward to it. There are benefits for the Canucks in ridding itself of the 12 year ball and chain. For starters, the Luongo deal has a no-trade clause. The Canucks would have to pay his $5.3 million cap hit for many more years even if he fails to deliver. In the very next season Luongo played after signing an extension with the Canucks, and right after his statistics began to show a decline. His save percentage dropped from .920 to .913. In 2008-2009 season he conceded 124 goals but in 2009-2010 that number rose to 167. He had managed 5 fewer shutouts in his last season than he did in the one before.
It could all be just a bad season or indications that the Canucks have made a long term investment that might not pay off. If however the arbitrator undoes the Canucks mistake then goaltending prospect Cory Schneider could one day become a replacement for Luongo.
The Canucks could also use a little cap relief. If Luongo becomes a free agent like Kovalchuk did, it would open up many options for the Canucks. This year has not been kind to Goaltenders as was seen when Antti Niemi got turned down by the Chicago Blackhawks. Niemi changed the nature of the game when he led the Blackhawks to Stanley Cup glory as a rookie.
In the year that the Canuck’s were paying $5.3 million for their goaltender, the Blackhawks prevailed with a rookie who was making just $826,000. What that said for the NHL was that an overpaid experienced Goaltender is not as important as previously thought. It was this realization that cost Niemi his place with the Blackhawks after salary arbitration hearings that went in Niemi’s favour.
With that in mind if the Luongo contract is nullified the Canucks could very likely re-sign him for a more manageable cap hit. Maybe the Canucks really are hoping the arbitrator decides against them.
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