Internet reports are flying rabid tonight about the NHL's decision to reject the New Jersey Devils contract negotiation with Ilya Kovalchuk. Reports say that the NHL will do so on the grounds that New Jersey is circumventing the league's salary cap rules with the contract. The official deal was a 17-year deal worth $102 million, not the originally reported $150 million.
I didn't even know the NHL could do this, but it is certainly some stunning news. 17 years is a ridiculously long time for a signing. And to tell you the truth, the rejection may even be good for the Devils. Why would you want him signed for 17 years? Think about the potential repercussions. We're feeling as if Marc Savard is a burden for the next 7 years. What if Kovalchuk is struck with injury or his play deteriorates? He's locked on until 2027. Either way, I expect this will require a long process with the Devils fighting back against it. Still, the reports right now are that the NHL will reject this contract because of its absurd nature in relation to the league's standards.
the deal would've paid him like 7 million or 8 a year for the first 8 or so years but then at the end of his contract he would be making 1 or 2 million. They do this because the cap hit the team takes in each year is the average salary over the length of the contract. So for these first few years he would be getting paid like 9 million or something, but the team cap would only get hit with 6, leaving more money available
ReplyDeleteInteresting. Very interesting.
ReplyDeleteThe bad part about that is by the 17th year, he may only be getting paid 1 million, but his cap hit is still 6 or whatever. Bad for NJ in the long run probably.
ReplyDeletethe whole reason it's being voided is because the devils don't expect him to play till he's 44, so if he plays out the first 11 years of the deal (all of the years with real money)and then retires... the contract would basically be an 11 year 98 million dollar contract but instead of having an 8.9 million dollar cap hit like it should, it will only have 6 million dollar cap hit...
ReplyDeleteSo basically thats like the bruins after next season, seeing that Seguin is nasty and want to lock him up for his whole career sign him to a 1000 year 200 million dollar contract that pays him 10 mil a year for the first 20 years and then a dollar a year for the rest of the deal... the cap hit would be minimal, but there is no way he could possibly play out the contract.. so therefore the salary cap is basically useless... thats why there needs to be a max on how many years a contract can be
Very clear break down. I understand now. Properly rejected. I think the salary hit should just be whatever the pay is. If it's front loaded, so is the cap hit. It's the only way that makes sense.
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