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DEAL VOIDED BY ARBITRATOR! Kovalchuk re-signs in Jersey: $102M over 17 years

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Where will Kovalchuk end up?

DEAL VOIDED BY ARBITRATOR! Kovalchuk re-signs in Jersey: $102M over 17 years - Page 5 Vote_lcap250%DEAL VOIDED BY ARBITRATOR! Kovalchuk re-signs in Jersey: $102M over 17 years - Page 5 Vote_rcap2 50% [ 2 ]
DEAL VOIDED BY ARBITRATOR! Kovalchuk re-signs in Jersey: $102M over 17 years - Page 5 Vote_lcap225%DEAL VOIDED BY ARBITRATOR! Kovalchuk re-signs in Jersey: $102M over 17 years - Page 5 Vote_rcap2 25% [ 1 ]
DEAL VOIDED BY ARBITRATOR! Kovalchuk re-signs in Jersey: $102M over 17 years - Page 5 Vote_lcap20%DEAL VOIDED BY ARBITRATOR! Kovalchuk re-signs in Jersey: $102M over 17 years - Page 5 Vote_rcap2 0% [ 0 ]
DEAL VOIDED BY ARBITRATOR! Kovalchuk re-signs in Jersey: $102M over 17 years - Page 5 Vote_lcap20%DEAL VOIDED BY ARBITRATOR! Kovalchuk re-signs in Jersey: $102M over 17 years - Page 5 Vote_rcap2 0% [ 0 ]
DEAL VOIDED BY ARBITRATOR! Kovalchuk re-signs in Jersey: $102M over 17 years - Page 5 Vote_lcap20%DEAL VOIDED BY ARBITRATOR! Kovalchuk re-signs in Jersey: $102M over 17 years - Page 5 Vote_rcap2 0% [ 0 ]
DEAL VOIDED BY ARBITRATOR! Kovalchuk re-signs in Jersey: $102M over 17 years - Page 5 Vote_lcap225%DEAL VOIDED BY ARBITRATOR! Kovalchuk re-signs in Jersey: $102M over 17 years - Page 5 Vote_rcap2 25% [ 1 ]
Total Votes : 4

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Guest


Guest
shabbs wrote:
Amnesia021 wrote:
shabbs wrote:Pronger's contract certainly has the look cap circumvention...

$33.4M over the first 5 years and $1.05M over the last two years.

Big difference though is that if Pronger decides that playing for two years on a 525,000 salary is not worth it, so he retires, the flyers will still be left with a massive Cap hit for those years...
Yes, this is true... but the subtle difference is that without those two years added on, the cap hit is $6.89M. With them, it's $4.921. It saves them some room.

If the Flyers were not aware of the 35+ rule they they screwed themselves even more as the hit remains.

The key issue the NHL has is artificially extending contracts to bring the cap hit down and front loading them, knowing full well the player won't play those last few years and will get their money up front.
It saves them room now, but they pay for it later when they have a 5M cap hit for a couple years and are getting nothing for it.

shabbs


Hall of Famer
Hall of Famer
Would just love to know if they totally forgot about the 35+ rule...

Riprock


All-Star
All-Star
I believe though the Flyers could waive Pronger if he was to retire, and then assign him to the minors, where he could retire and be off the NHL cap, I believe. i'll look into it.

Riprock

Riprock
All-Star
All-Star
I found these two points: http://proicehockey.about.com/od/learnthegame/a/nhl_salary_cap.htm

The 35-and-Older Clause:

* When a player aged 35 or older signs a multi-year contract, his average salary is counted against the team's salary cap during every year of the contract, even if the player retires before the contract is up.
* If the player is sent to the minor leagues, his cap hit is reduced by $100,000.

Counting the Cap:

* Team salary expenditures are calculated on a daily basis from the first day to the final day of the NHL regular season.
* A team is in compliance if it has not already exceeded the cap for the season, and if it could carry its current roster without exceeding the cap at the end of the season.
* Counted against the cap: All players on the active roster, injured reserve or the long-term injured list. Players who have left the team on a contract buyout, according to a formula that charges a percentage of the buyout against the cap.
* Not counted against the cap?: Players assigned to the minors or returned to junior hockey after signing an NHL contract.

Amnesia021

Amnesia021
Rookie
Rookie
shabbs wrote:Would just love to know if they totally forgot about the 35+ rule...
If I'm not mistaken, they signed him to a contract extension. The new contract was drafted before he turned 35, but didn't take effect until after 35... still pretty dumb if they didn't realize the new contract wouldn't be retire-able...

SensHulk

SensHulk
All-Star
All-Star
that's a good point about the waivers. The money would still be owed I think to the player but at the point they retire, there won't be too much money to pay anyways, so its a small price to pay.

Another matter to discuss in the next CBA negotiations. Please, just no more lockouts.

shabbs

shabbs
Hall of Famer
Hall of Famer
Dash wrote:I believe though the Flyers could waive Pronger if he was to retire, and then assign him to the minors, where he could retire and be off the NHL cap, I believe. i'll look into it.
Nope. They only get a savings of $100,000 if they are assigned to the minors after the first year. CBA Article 50.5 (d-i-B-5) (P. 203)

Riprock

Riprock
All-Star
All-Star
Yeah I saw that, as I quoted in my earlier post. But if they retire from the AHL...

shabbs

shabbs
Hall of Famer
Hall of Famer
Dash wrote:Yeah I saw that, as I quoted in my earlier post. But if they retire from the AHL...
Hmmm... doubt it. But, you never know.

Wink

cash


Sophomore
Sophomore
RobbyJ wrote:
shabbs wrote:
Amnesia021 wrote:
shabbs wrote:Pronger's contract certainly has the look cap circumvention...

$33.4M over the first 5 years and $1.05M over the last two years.

Big difference though is that if Pronger decides that playing for two years on a 525,000 salary is not worth it, so he retires, the flyers will still be left with a massive Cap hit for those years...
Yes, this is true... but the subtle difference is that without those two years added on, the cap hit is $6.89M. With them, it's $4.921. It saves them some room.

If the Flyers were not aware of the 35+ rule they they screwed themselves even more as the hit remains.

The key issue the NHL has is artificially extending contracts to bring the cap hit down and front loading them, knowing full well the player won't play those last few years and will get their money up front.
It saves them room now, but they pay for it later when they have a 5M cap hit for a couple years and are getting nothing for it.

They could just Keith Primeau him...

Guest


Guest
They could absolutely Keith Primeau/Mike Rathje/Derien Hatcher him. Not like the Flyers don't know how to work LTIR.

CockRoche

CockRoche
Veteran
Veteran
SpezDispenser wrote:Here comes a 15 year contract, worth a cap hit of around 6.5. It's not that hard to fix, but it hurts the Devils (which is good).
EDIT: This is my gut feeling, nothing more.

Haha. I said (almost) the exact same thing before you. I said they would change it to a 16-year contract, as that would take Kovalchuk to 43 years of age upon the completion of the deal, the same age as Luongo when his runs out.

The NHL can't say boo then.

CockRoche

CockRoche
Veteran
Veteran
SeawaySensFan wrote:
SpezDispenser wrote:Here comes a 15 year contract, worth a cap hit of around 6.5. It's not that hard to fix, but it hurts the Devils (which is good).
EDIT: This is my gut feeling, nothing more.

They allowed contracts to go to age 42 already, so this might be the ticket. They can probably still work the same cap hit too for a little more money in different years of the deal.

Yep, 43 actually. Luongo.

Take one year off the length of Kovalchuk's deal and call it kosher.

CockRoche

CockRoche
Veteran
Veteran
shabbs wrote:Lou will have to make the salary drop off much less ridiculous as well. As long as they structure is similar to an already approved contract, the NHL will have to allow it.

I don't think the salary will change, just the length.

The salary drop-off follows Article 50.7 (ii) of the CBA which states: any decrease in Player Salary and Bonuses from one League Year to another may not exceed 50 percent of the Player Salary and Bonuses of the lower of the first two League Years of the SPC (or, if such amounts are the same, 50 percent of that same amount).

In simpler terms, the first 2 years of Kovalchuk's contract pay him $6 million in each year. Therefore 50% of 6 mil is 3 mil. That means from any year to year salary, Kovalchuk can not make more than 3 mil less than he did the year prior.

We will see though. Your guess is as good as mine.

CockRoche

CockRoche
Veteran
Veteran
shabbs wrote:If they appeal and it goes to arbitration... I think the NHLPA wins. There really is nothing concrete in the CBA that does not allow this type of contract. We all know it's wrong, but the CBA allows for it, for now.

My thoughts exactly.

The NHL can not prove that they maliciously and intentionally circumvented the spirit of the salary cap within the CBA.

wprager

wprager
Administrator
Administrator
DownGoesBrown reveals Kovalchuk's contract Smile

http://www.downgoesbrown.com/2010/07/leaked-ilya-kovalchuks-contract.html


_________________
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shabbs

shabbs
Hall of Famer
Hall of Famer
Lou had some interesting comments today... actually distancing himself from this contract suggesting this was a decision that came from "above him" and not something he would have done.

Interesting.

CockRoche

CockRoche
Veteran
Veteran
shabbs wrote:Lou had some interesting comments today... actually distancing himself from this contract suggesting this was a decision that came from "above him" and not something he would have done.

Interesting.

Does Lamoriello not want Kovalchuk? If he wants him, he better learn to keep it zipped or the NHL will have a case to prove that they made that contract with the intent to circumvent the cap.

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