National Hockey League levies harsh fine on New Jersey Devils
The National Hockey League announced Monday that they have fined the New Jersey Devils $3 million for deliberately circumventing the league's salary cap for the first contract signed by Ilya Kovalchuk this summer. As part of the punishment, the Devils will also have to give up a third-round draft pick in the 2011 NHL Entry Draft and a first round draft pick within the next four NHL Entry Drafts. The Devils will get to choose which year they will forfeit the pick by advising the NHL the day following the conclusion of the Stanley Cup Final in the calendar year that it will be forfeited. The Devils $3 million fine will go to the NHL Foundation, the league's primary charity.
In the statement by the NHL, there will be no reduction in the Devil’s cap space for the fine and the NHL considers the matter closed and will have no further comment.
The Devil’s do have the right to appeal the decision. If they do, they will have to appeal to the NHL's board of governors, who will be meeting in New York on Tuesday. Devils CEO, President and General Manager Lou Lamoriello responded to the League's statement.
"We were today 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."
The punishment is for the original deal the Devils agreed to with Kovalchuk back in July. However, independent arbitrator, Richard Bloch, ruled that the 17-year, $102 million contract was an attempt to circumvent the NHL's salary cap, as it was heavily front-loaded. The NHL eventually approved the second contract agreed upon by the Devils and Kovalchuk, which was for $100 million over 15 years.
Although the Devils are happy to have Kovalchuk in their line-up, if the punishment stands, it will certainly be a hefty price to pay to for the Russian sniper.
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