It wasn’t official until last night, but a high source told The Post today that the NHL had contacted the Devils – before yesterday’s press conference – to alert them to the likelihood that the league was going to reject Ilya Kovalchuk’s 17-year contract.
Another source said the Devils “absolutely” knew, confirming an ESPN report.
The Devils apparently went through with their press conference in order to seal their position and set in motion the chain of events that will likely lead to arbitration, which is expected to force the NHL to accept and register the deal.
Failure to reveal that their press conference was for a contract that was already being rejected would be a failure at transparency, the sort of shenanigans that has long enraged fans and followers of the team.
On the other hand, the NHL obviously knew it was rejecting the deal by the 1 p.m. press conference yesterday, and didn’t announce anything until this morning, after it was leaked to Canadian TV last night.
A high source said the Devils were officially informed of the rejection last night.
Announcing the rejection is clearly the league’s responsibility, but a source indicates the decision was not final by the time of the press conference.
In the end, however, both sides’ failures at public relations stand to have little impact on whether Kovalchuk’s league-rejected contract of $102 million over 17 years is eventually upheld.
“We are extremely disappointed that the NHL has decided to reject the contract of Ilya Kovalchuk. The contract complies with the terms of the Collective Bargaining Agreement,” GM Lou Lamoriello said in a statement this afternoon. “We will have no further comment until the process outlined in the CBA is complete.”
The Players Association was mulling its options today, and is expected to file for arbitration by next Tuesday. It is up to the PA to file a grievance and ask for arbitration. The PA is believed to think it has a very strong case to force the league to accept and register the contract. If denied, the Devils would still have the opportunity to revamp the contract more to the league’s liking.
“I can’t comment on the Kovalchuk stuff,” Devils owner Jeff Vanderbeek said. “I can’t comment.”
It does not seem likely that circumvention penalties, such as suspensions or hefty fines, $1-5 million for the team and $250G-$1 million for the player, would apply in this case of an initial contract submission voided over a previously-unspecified issue.
Before the case gets anywhere, though, the sides will have to agree on a “systems arbitrator,” never having selected nor needed one in the five years of the CBA, since there hasn’t been a voided contract like this sent to arbitration.
The league apparently doesn’t believe Kovalchuk is going to play until age 44, and that the final low-paid years of the deal are subterfuge to lower the average salary and cap hit of the entire package.
“The contract has been rejected by the League as a circumvention of the Collective Bargaining Agreement,” NHL deputy commissioner Bill Daly said yesterday in a statement. “Under the CBA, the contract rejection triggers a number of possible next steps that may be elected by any or each of the NHLPA, the Player and/or the Club. In the interim, the player is not entitled to play under the contract, nor is he entitled to any of the rights and benefits that are provided for thereunder. The League will have no further comment on this matter pending further developments.”
If the PA files for arbitration, the Devils will have to watch the leaderless Players Association argue their case, since the PA does not represent Lamoriello or the Devils, but is the only body eligible to file a dispute and demand arbitration on a rejected contract.
While the PA lacks an executive director, it is fully set up to handle procedural issues with legal officers in place. It will have five business days, starting yesterday, to file a grievance demanding that the contract be registered.
“The NHLPA is currently analyzing the basis upon which the NHL rejected the contract between the New Jersey Devils and Ilya Kovalchuk. We are evaluating the options available to us under the terms established in the CBA,” NHLPA spokesman Jonathan Weatherdon said in a statement yesterday. “The NHLPA will have no further comment at this time.”
Kovalchuk’s league-rejected contract calls for $98.5 million in salary over its first 11 years, and only $3.5 million total in its final six seasons. Those seasons after Kovalchuk turns 38 cut the average from $8.9 million to $6 million in annual cap hit. But the CBA requires only that salaries decrease from year-to-year no more than 50 percent of the average of the first two years, $3 million in this case. A $3 million drop between Year 10 ($6.5 million) and 11 ($3.5 million) is the largest decrease in the contract. The following season it falls to $750G, a drop of $2.75 million.
Kovalchuk, 27, made a point, at Tuesday’s press conference, of assuring everyone he intends playing at age 44.
“I’ll only be 44 at that time. I’ve played with guys who played at a pretty good level at that age. I hope I’m going to keep myself in shape to still play,” Kovalchuk said.
The Devils are also allowed to re-work the contract to the satisfaction of the league, which may be difficult to do given the collision of the total salary and the cap hit. New Jersey hired the NHL’s cap specialist, Steve Pellegrini, to handle its cap issues after it had such trouble in the early years of this CBA.