The Kovalchuk Saga: Assigning Blame
by Tom Stivali on Sep 2, 2010 8:58 PM EDT
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PrintI had planned to write about Nick Palmieri, the Devils overall right wing system depth or minute distribution on the power play but I just can’t. Not when the contract negotiation to retain Ilya Kovalchuk has gotten to the far reaches of absurdity, and I really can't focus on other issues right now. Normally I love the hockey offseason and all the speculation and forecasting that comes along with it, but as we approach training camp (you all realize training camp starts in 15 days, right?) the top focus for fans and even team management’s minds is: Ilya Kovalchuk’s contract approval or lack thereof.
How did we get here? The Standard Player Contract (SPC) is 11 pages. Here is the CBA. Turn to page 244 and see for yourself. It's standard, very little editing. This process of negotiating a second contract, acceptable to the Devils, Kovalchuk and the league has taken over a month. So I think all of them deserve a certain amount of blame in why this process has dragged on. So, as I repeatedly hit refresh on my blackberry or twitter in search of news on a process that never seems to end, I decided to think about and write about who to assign blame to in this situation. Read on after the jump for my thoughts!
While pawns in a much bigger game (future CBA negotiations) the Devils/Kovalchuk do share blame in this mess. They knew what had been accepted by the NHL in previous contracts. The only thing they had to do was put together a convincing structure and not try to stretch the ‘line in the sand’ that far. They failed. The original contract was blatent in its circumvention, and it was rejected. The second contract while in compliance with arbitrator Richard Bloch’s ruling and guidelines, was just as bad as the first that it was obvious that the last two years were only inserted to drive up the cap hit to make the deal more palatable for the NHL. That said, as all of us have discussed on this site, nothing in the CBA prohibits such contracts and there had been similar deals completed in the past.
But is it really that hard to put together a long-term deal giving the player the money (or appearance of money) that he wants and giving the Devils and the league an acceptable cap hit? Here is a 13 year deal that gets everyone what they want:
Even operating under the assumption that he will only play 10 of the years, this would get passed. The average of the top 10 years is $8.6MM per year and the cap hit would be $7MM which would give the Devils a cap savings of $1.7MM. (Trust me, I know there are a million other scenarios that others have played out, this is just an example) Also, I know that Lou Lamoriello doesn’t want a high cap hit but $7MM for a player of Kovalchuk's talents. $6MM was pushing it. In the above scenario Kovalchuk gets $92MM. If the $100MM is SO important to him, then make it a 14 year deal adding adding appropriate amounts to keep the rate of decline similar. There, done. Wasn’t that simple?
The blame for turning this into a circus is at the feet of the NHL and the ineptitude of the NHLPA. I am amazed at how the NHL operates and more importantly how the NHLPA lets them get away with it. The NHL has taken one player contract and is now trying to generate concessions out of the NHLPA for it. It is especially interesting that the NHL is alienating a franchise that has a GM who would normally be a strong ally to the NHL in the next set of labor negotiations. But they get freedom to do this because of the NHLPA.
Simply put, the NHLPA is a disaster. What union renegotiates a CBA (one where they got the short end of the stick) two years before the expiration of said CBA when it has little overall benefit to do so? The NHLPA. What union continues to be leaderless and keeps tip toeing around hiring leadership even now when the NHL is trying to step on the proverbial throats of the union while it has no leader? The NHLPA. I apologize if I am sounding like Larry Brooks but the inefficiencies of the NHLPA is mind boggling.
If what the NY Post reported last night is true (and I will say that I know everyone questions the Post and its reliability but it has been on top of the Kovalchuk story as it was the first to report the original 17 year deal) the NHLPA is currently talking to the NHL about two stipulations that the NHL wants enacted into the CBA right now.
This quid pro quo would essentially be a trade of the registration of the Kovalchuk contract, further ‘approval’ of the Roberto Luongo/Marian Hossa deals (yet Chris Pronger/Vinny Lecavlier are OK, which I still don’t understand) for two new restrictions on long-term contracts.
UPDATE: Per a Larry Brooks tweet a few hours ago it looks like option #2 might be off the table.
Why, why, why would the NHLPA even entertain this? (Although I do think the first provision is a fair one.) While the Bloch ruling gave the league a lot of leverage it would seem the Devils addressed the issues in the latest contract to Kovalchuk. If the league should reject the deal, and a different arbitrator reverse the league's decision, they lose the guidelines the ruling has helped give them. Per a tweet from Darren Dreger, it seems that the NHLPA has been working with the NHL to rectify the long-term contract loophole. Um, why? Why lose a bargaining chip for the next round of negotiations? Are they just in a giving mood this time of year? If the situation was reversed would Bill Daly help the union close a loophole in the CBA that was being exploited by the league?
Essentially the NHL is asking the NHLPA to help them rectify a mistake that they didn’t catch in the last round of negotiations that the players AND owners have used to their benefit.
Remember, while a player does have some penalties they are exposed to in Article 26 of the CBA, the owner/franchise can take a severe hit in cap space due to a circumvention.
As an aside to the whole ‘ultimatum’ issue in the Post: Beyond the obvious answer of having less money to spend on players, why would the union care if a team gets fined for circumvention? Trust me, I do not want any decisions made by the NHLPA to affect the Devils salary cap, but it's not their job to look out for the teams, their job is to support the player.
The NHL is trying to take advantage of the union while it can, and before the CBA is actually up and I can’t blame them for trying. I mean what did the NHLPA do when faced with the original grievance on the Kovalchuk contract rejection? They lost a case most thought was easily winnable. They won’t confirm Donald Fehr as their leader, but they have no problem helping the NHL drive down the salaries and monies their players earn. Good work.
The idea that they are using the Kovalchuk contract as a chip in negotiations right now totally throws out the notion that they reviewed the latest contract in good faith. The idea that they could amend the contract is even worse. What's next? Will the NHL now just start allocating players to teams? No need for free agency!
This whole circus just makes the NHL seem petty and vindictive. It's hard to take the league/game as seriously as I do, when it is run the way it is. The game and promoting it within North America always seems to be secondary to the NHL.
I hope the NHLPA can get their act together. I hope they stand their ground and bring a contract rejection to arbitration and deal the NHL a defeat. Like I said, I hope.
I also hope that recent tweets by Larry Brooks and Scott Burnside that a deal is close is true. Although I still don't understand why the NHLPA would bargain to begin with.
Now, the moment you have been waiting for......
So who do I assign blame to in this current mess?
10% Devils
10% Kovalchuk's camp
30% NHLPA
50% NHL
Agree? Disagree? Sound off below and thanks for reading my rant.
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Great write up!
It doesn’t make sense to me why they are called a “players association” when they aren’t on the player’s side in the first place. Donald Fehr I guess is waiting for 2012 and then leave I guess. I don’t know about that situation. Its funny how this is the contract they decide to hold out on. I see it pushes the line in this. Overall I agree on all the points you had on this.
Mathew Barnaby to Lyle Odelein: "Cornelius, as we like to call him, gets under your skin. Planet of the Apes. Look at him. Seriously. He looks like Cornelious."
Odelein to Barnaby: "He should take a look at his wife. She's God-awful to look at."
by RolliePollieKovy on Sep 2, 2010 9:13 PM EDT reply actions
Totally agree!
And the net result of this is two HUGE steps backwards in the credibility of the NHL!!! Its like they are making things up as they go….makes the whole league look like a laughing stock.
100% Agree
Joshd12
Brock University
BA. Sports Management, 2014
BA. Recreation and Leisure Studies, 2011
minor nitpick, but your contract doesn’t work. it has a decrease of 3.5 million between 2018 and 2019 – a decrease or increase from year to year cannot be more than half of the lower value of the first two years of the contract.
that aside, i blame kovalchuk and the devils far more than either the NHL or the NHLPA. the first contract was a joke. could it have been allowed? maybe – but one test it didn’t pass is the reasonable man test. would a reasonable person think kovalchuk or NJ intended to play out all of those years? of course not. obviously the reasonable man test and arbitration are two different things, and the PA could’ve won the arbitration, but it didn’t. that was a chance to begin with. this second contract could have been 13/91, but kovalchuk wanted the $100 million figure and vanderbeek wanted to give it to him.
the NHLPA should bargain for a few reasons. one, these deals do affect escrow payouts, so they hurt the entire union for the sake of a few players. two, they don’t want to have to constantly be filing grievances against the NHL. three, the NHL actually does have the power to de-register contracts it previously approved, it’s right there in the CBA. four, it’s not fair to the players who do sign contracts like this to hold them in limbo all summer like Kovalchuk has been held. it’s entirely possible that a player could sign a contract like this, the NHL and the PA go to arbitration, and the league seeks circumvention penalties that prevent that player from playing for that team without major alterations.
while this is something the PA had over the league, it wasn’t very strong – it was something that 2% of players in the NHL have. who knows, maybe the players will get something out of it all too, if burnside is to be believed.
Thanks for the heads up, I updated the post.
If the PA was getting something in return (say RFA arbitration awards are all 100% binding) I don’t see why they would openly concede any points for the sake of a few. Maybe the indefinite amount of time to fine a player/club is amended to read something like that the NHL would have 90 days to complete an investigation and 60 days upon the completion of said investigation to impose any fines.
I hate the idea that they would just concede a negotiating point without getting anything in return. And as you state above, the only thing they would be getting back is the security that a few players contracts would go through. I also understand your concerns about escrow, but I think that cap room made available by these long term deals is something, if I was fighting for the lower salaried players, I would want to keep.
Well, technically, they are getting hardline clarification on long term deals, which would interest a pool of players larger than the currently “approved” or pending contracts. An impressive crop of Free Agents will be hitting the market next summer, and I’m sure that more than a few players (and owners) are going to be looking to get their paydays or franchise guys locked up under the current CBA and pre-lockout, if that happens. What happens here is happening to prevent a redux of this summer next July. This year, it was one contract. Next year it could be as many as a dozen or so. Does the PA want to go through that? Does the League? Do the Owners? And if the Brooks tweet is correct, and #2 is not on the table, then it’s a complete no-brainer.
That’s whats concerning to me, if they tie up the loophole then there will be substantially less money for all players next year since teams won’t be able to offset the cap hit with additional years.
That said, if they can come to an agreement on the ‘cap savings’ a long term deal can provide it MIGHT be good to negotiate provided the NHLPA gets something as well.
I don’t really think it’s going to be that bad. If the conditions are that a tail over the age of 40 will not be included in the calculation, there’s still no reason why a 27 year old stud can’t sign a 13 year deal with a tail and several high years in the begining/middle. Still plenty of money and opportunity out there. It does limit the early 30-somethings from signing long term deals, but it’s still pretty easy to pay a 33 year old in a retirement situation contract if you take it to 40, and pay him what he’ll realistically be worth when his career is ending. And then, if he’s still capable of playing at 41 or 42, give him a new contract.
This just cleans up the potential for a lot more ugliness next summer. One player, one team have been held up this offseason. If you look a little deeper, perhaps Kovy not being signed impacts the potentail signings and paydays of 2 or three other players, and the plans of 1 or 2 other teams. Now if you expand that out to next summer with 10 or 12 players in limbo, you have a pool of maybe half the owners in the league, and 50ish players being affected, guys to be signed, guys to be moved to fit under caps, guys to get traded to meet positional needs. All of a sudden, it gets really disruptive. I honestly don’t think anyone wants that to happen, and that alone will be sifficient to get this thing done.
I would love for the PA to call the league’s bluff and tell Bettman to deregister Hossa’s contract, thus saying that the Hawks cheated to win the Cup and the NHL was too inept to figure it out until the next summer. The problem is, I don’t trust Bettman to protect the greatest trophy in sports; he seems like he’d toss out the entire history of the league if it suited him.
Bettman has not only destroyed the integrity of the greatest game in professional sports today, he killed any dream of the game’s players to use the CURRENT CBA to make their money, as well as serve their entire careers (as in the case of Kovalchuk’s case) in one place, be marketed in one place, and have their family’s grow up in one place. Bettman’s new totalitarian system of commissioning is unlike anything seen in sports. His manipulation of the NHLPA, the CBA, and the fans is just as interesting as Lou’s magical run at even attempting (and almost getting away with) signing Kovalchuk to a 17 year deal.
In Lou We Trust
No truer sentence has ever been spoken.
by Marty'sBetter30 on Sep 3, 2010 2:50 AM EDT up reply actions
or ilya kovalchuk could’ve just signed a 13 year, 91 million dollar deal, where he probably ends up making $5 million less than what’s in the current deal.
Assuming such a deal was ever offered.
Probably not because both parties wanted the contract $100 million over 15+ years.
But hey, keep blaming the player.
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by John Fischer on Sep 3, 2010 10:43 AM EDT up reply actions
NHLPA Interest
I think this was a good piece, but I do think the NHLPA has a tangential interest in making sure teams aren’t fined. If teams are penalized, the market for the player in question is reduced, and future similar transactions will be affected (with the likely outcome of shorter/lower-salary deals for players).
Great summary
Logical conclusions, although I disagree with taking a second rejection to arbitration. I know how you feel about the potentail for penalties to be imposed, but I’m not convinced that the path taken to arbitration, or Bloch’s staements in the ruling protect the Devils from those penalties. The worst case scenario I can see is that the Second Arbitration equates to a win, and we get Kovy. NHL imposes a $5M cap penalty for the coming season just because they can, and we have to unload Salvadore, Zajac, Zubrus, and someone else somewhere to make room for Kovy. That scares the hell outta me.
I’d be far happier if both sides can just work this out behind the scenes, even if it means the PA eating their nuts for a year. Another summer of this crap would kill the league even before the lockout has a chance to. The League already has their approval criteria in their heads, just get it on paper, and get what you can for it. They are going to evaluate coming SPCs by it anyway.
I go back and forth on going for a second arbitration. I woke up this morning and said to myself that arbitration would be a bad idea.
I hate the fact that any potential fine given to the Devils would be as a result of the NHLPA’s legal team trying to prove non-circumvention.
That’s great news on the Larry Brooks tweet. Just #1 would be a very small concession, if you can even call it that. If the NHLPA were smart, they’d demand that some similiar loophole that allows teams to pay their players less than the salary floor (ISLANDERS, when DiPietro is injured(and he usually is) their active payroll is well under 35 million) as a giveback. But this is the NHLPA that we’re talking about, so they’ll just flounder around and give in.
On the Mike Weber bandwagon.
Everything wrong with the Sabres is Drew Stafford's fault.
word going around on twitter
Is that the contract is going to be rejected. While I thought the first contract was fine so I’m not going to conclude anything, but I would find it difficult to think that this contract wouldn’t win if the NHLPA filed a grievance. I admit, the first contract was above and beyond in many ways, but this contract is less circumventing in many ways than other contracts that were previously accepted and is also less “circumvention” than in the past. For one, the contract is two years shorter, which helps only mildly, but means I believe two less years at minimal salary. Secondly, there is now just 3 years at 1 million. Compare with Marian Hossa’s salary, which is 1 mil for 2 years and .75 for 2! How can the NHL even defend rejecting Kovy’s contract and not Hossa’s? Does anyone else see this inconsistency? The NHL at least could say with the first contract that it went further than any previous SPC tendered, but in this case that is simply not true. Essentially, the only ground the NHL has is to say Kovy won’t be playing after say age 40. But by then Kovy will have already played his low years. If the NHL questions if he will be playing at 37 at 1 mil, then its much harder to be convincing since there are plenty of players currently who continue to play at that age. A quick look at Detroit shows about 5 players around that age or older, including 40 year old Mike Modano, who signed for 1.25 milion, similar to the amount Kovalchuk would be making at that point.
Disheartening, but could it be that it would be rejected without a resolution during these negotiations, and that the outcome of the negotiations would result in an acceptance?
I only bring it up because if this thing is going to rejected anyway, then let me know now so we can get on with business while you fight about the CBA. Find another effing hostage.
This drama belongs on CBS TV at 2pm in the afternoon with the other soap operas...
I just find it extremely disheartening to read something like that. For the NHL to say we’re going to reject this contract unless you put an end to contracts like this seems completely outrageous to me. Either the contract is legal or it’s not…it should never come down to, “well if you make changes to the CBA now we will except the contract; but if you don’t then it will be rejected.”
This entire ordeal is becoming an unfortunate mess which in no way is helping the NHL gain fans or attract positive PR. It’s like school children at lunch time making deals for each others food…I’ll give you this if you give me that.
Anyway, I know it’s just a Dreger tweet and not coming directly from an NHL exec, but with everything that has occured it seems to hold a good bit of water.
Damn…. I can’t believe we’ve been doing this all summer long… Another “final” day of Kovy contract stuff. I hope I’m wrong but, I’ve got a bad feeling about this.
At least the season will start soon and tickets go on sale soon. Can’t wait for the home opener regardless of the Kovy drama outcome.
I suffer from selective short term amnesia and have chosen to forget about the 2010 post season.
by Devil_Hard_Core on Sep 3, 2010 10:37 AM EDT reply actions
What if...?
If 5PM passes without any resolution, is the contract registered? I understand that under the rules, it should be…..but since they like changing the rules, I was just curious.
Dreger just tweeted the deadline will extend once again. Theres a link in the story below.
Mathew Barnaby to Lyle Odelein: "Cornelius, as we like to call him, gets under your skin. Planet of the Apes. Look at him. Seriously. He looks like Cornelious."
Odelein to Barnaby: "He should take a look at his wife. She's God-awful to look at."
by RolliePollieKovy on Sep 3, 2010 11:01 AM EDT up reply actions
There are so many reports and speculations as to what will happen… who knows at this point?
I suffer from selective short term amnesia and have chosen to forget about the 2010 post season.
by Devil_Hard_Core on Sep 3, 2010 11:17 AM EDT up reply actions
Your proposed contract wouldn’t fly, even without the 3/3.5M. All along we’d heard Kovy was looking for $100M total.
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I feel the contract submitted (the year by year breakdown is the only detail the public knows) is fine. The only way to make it better to please everyone would be to make year 3 to 7 all $11m/yr, and take that extra $2m you have and add it the three seasons of $1m/yr.
From this: 6, 6, 11, 11.3, 11.3, 11.6, 11.8, 10, 7, 4, 1, 1, 1, 3, 4
To this: 6, 6, 11, 11, 11, 11, 11, 10, 7, 4, 1.67, 1.67, 1.67, 3, 4
Or take the last 5 years, and split $12m evenly at $2.4m/yr to: 6, 6, 11, 11, 11, 11, 11, 10, 7, 4, 2.4, 2.4, 2.4, 2.4, 2.4.
There’s so many different ways you make this look good (it depends on the person’s perspective of the contract as to what looks aesthetic).
Wait I got it! 6, 6, 11, 11, 11, 11, 11, 10, 7, 4, 2, 2, 2, 3, 3…
In Lou We Trust: SBN Blog of the New Jersey Devils
"Hockey is the only job I know where you get paid to have a nap on the day of the game." - Chico Resch
by Matthew Ventolo on Sep 3, 2010 11:21 AM EDT reply actions
And like you said again (btw, I agree with one on all these points, there’s some really good things you said), how hard can it be to figure out a reasonable breakdown that can please everyone? There’s so many options; the larger pool size, the better you’re gonna find a good contract.
Also, the $6.66m/yr cap hit compared to a little over $7 isn’t a big deal. The cap space would be $-2,968,333 and $-3,501,666 (conservatively at a $7.2m hit) respectively. The Devils would have to get rid of 2 players with the $6.66m/yr hit anyway. The increase wouldn’t have to make Lou get rid of 3 or more players. You need some extra cap space to 1) get to a roster of 23 players and 2) make further moves during the season. Salvador ($2.9m/yr) and Zubrus ($3.4m/yr) have been in talks as to players that may be out. The Devils wouldn’t even have enough for a minimum contract if just Zubrus left under the current contract.
In Lou We Trust: SBN Blog of the New Jersey Devils
"Hockey is the only job I know where you get paid to have a nap on the day of the game." - Chico Resch
by Matthew Ventolo on Sep 3, 2010 11:55 AM EDT up reply actions
Random Thought
At every step in this saga the experts have been wrong.
1. Kovy signs with the Kings
2. Arbitrator would accept the deal after the first rejection
3. New deal would be accepted
Now, another extension? Maybe not. Maybe this wraps up today. (yes, that is wishful thinking)
Darren Dreger
tweets that a deal has been worked out between the NHL and the NHLPA
They are probably going to wait til 5 to announce it...
Mathew Barnaby to Lyle Odelein: "Cornelius, as we like to call him, gets under your skin. Planet of the Apes. Look at him. Seriously. He looks like Cornelious."
Odelein to Barnaby: "He should take a look at his wife. She's God-awful to look at."
by RolliePollieKovy on Sep 3, 2010 3:06 PM EDT up reply actions
Thats old news
Mathew Barnaby to Lyle Odelein: "Cornelius, as we like to call him, gets under your skin. Planet of the Apes. Look at him. Seriously. He looks like Cornelious."
Odelein to Barnaby: "He should take a look at his wife. She's God-awful to look at."
by RolliePollieKovy on Sep 3, 2010 3:07 PM EDT up reply actions
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