Looking behind the Arbitrator's Ruling
In reading James Mirtle's article on Arbitrator Richard Bloch's ruling in favor of the NHL against the NHLPA and Ilya Kovalchuk, something stuck out to me:
Bloch also noted that several other long-term contracts are under investigation for circumvention, listing deals given to Vancouver Canucks netminder Roberto Luongo, Boston Bruins centre Marc Savard, Philadelphia Flyers defenceman Chris Pronger and Chicago Blackhawks winger Marian Hossa as raising similar red flags to Kovalchuk’s rejected contract.
The Arbitrator in this case was hired to rule solely on Kovalchuk. So then why is he commenting on other contracts? What you are about to read is simply my logical resoning of why. Note I have no inside information and this is all purely speculative.
Going before the arbitrator, each side is going to present its case. The NHL would presumably argue that the contract violates the spirit of the CBA. The NHLPA's response would be to point out other contracts approved by the NHL as precedent setting. The burden would then be on the NHL to prove that the Kovalchuk contract is somehow worse than the other deals. Instead of doing this it seems the NHL instead decided to argue that those contracts are under investigation too. While the media hoopla will be around the idea that other contracts could be nullified, the real travesty here is that the arbitrator ruled NOT on the precedent set by the NHL, but instead on what that they said they will do. I can see no other reason he would bring up other contracts in his decision. That is like a guy getting busted for drugs telling the judge he planned to get clean the next week and the judge letting him go free. The arbitrator should rule solely on the case at hand with the precedents set, not on what the NHL might do in the future. And in this case I believe he not only made the wrong decision, but made it for the wrong reasons.
The opinions posted here are not those of Hockey Wilderness
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I agree with your point of view (except the part about the rejection being wrong), even if it's only speculation
But at the same time, what the hell is the NHL going to do if they decide to nullify existing contracts? Hossa just won a Stanley Cup, Pronger was a finalist, Luongo… well who gives a shit about Luongo, what I’m saying is that I don’t really see how these contracts could be nullified now and not when they were made…
I agree with the decision, but it may have been for the wrong reasons as you said…
I think it’s about time however that the NHL put it’s foot down, but now they have to be careful that that foot doesn’t end up in their mouth.
JS, Champion of the first ever Hockey Wilderness Playoff Bracket Challenge! WHOOOOOOOO!
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They can still be nullified because they have not taken effect yet. They were all extensions that kick in this season, except Hossa. I would say it is a long shot that they go after them, but as they sit right now, it sounds to me like they have been “registered,” but not “approved.” This means they could certainly be “unregistered.” With just about a month and a half left in the off season, it would put a huge burden on those teams to suddenly find cap space, etc to re-sign these players.
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Ahhh I see...
JS, Champion of the first ever Hockey Wilderness Playoff Bracket Challenge! WHOOOOOOOO!
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Interesting points. That was one of the reasons I wanted to point this angle out.
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So James
Do you think this was done to try to save the NHL from themselves, damn the hypocrisy?
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You better believe they don’t want anymore deals like this.
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by James Mirtle on Aug 11, 2010 12:49 AM CDT up reply actions
That's my thinking
This could not have gone better, and if it gives them an out to kill the Luongo, Pronger, Hossa, et al deals, all the better.
Proprietor of Hockey Wilderness - We take Minnesota hockey WAY too seriously.
Even though nullifying the contracts you just named might actually HELP those teams :P haha
Still wonder how it’s going to go down. It’s a potential mess in the making…
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twitter: BubbleWild48
I had to google that
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I see your point
but I’m not sure that the “future/potential precedent” of the NHL nullifying circumventing contracts had anything to do with Bloch’s ruling. In fact, I think that the discussion of nullifying those contracts came after Bloch made his ruling.
It seemed pretty obvious to me that Bloch ruled in favor of the NHL because “the contract extends well beyond the typical requirement age of NHL players” and because of the ridiculous percentage of the salary he was to be given before he was 40 years old. I don’t think any potential precedents were involved in his decision, nor did there NEED to be a precedent. The contract can stand alone in its rejection.
As for Bloch bringing up the other contracts, I think that was prompted by the outcry of all Devils fans and, as you would say, the “media hoopla” surrounding the event. It only seems fair that if the Kovy contract got nixed then all other contracts should at least be investigated.
All in all, It still wasn’t appropriate that he brought those contracts up.
Well, contract law is a very tricky area.
There is the letter of the contract agreement, and then there is precedent. I am sure that the NHL presented a case based on the original contract and the intent of the contract with language specifically mentioning that contracts cannot knowingly and intentionally extended past the point of planned retirement for the purposes of lowering the yearly value of the contract. I am certain that the NHLPA argued based on there being no specific language preventing front loaded contracts, and then their case hangs specifically on the precedent that has been set by the existing contracts of this nature.
Part of the decision on Kovy’s deal then would need to be if those precedent forming contracts are themselves contracts in good faith or if they are questionably seeking to circumvent the retirement clause of the contract. The decision to void Kovy’s contract as the most obviously bad contract comes hand in hand with the implication that those precedent setting contracts are themselves suspect.
I doubt those contracts will be voided. However, I have a feeling that those contracts will be focuses on during the next CBA. I would not be surprised at all if the cap hit numbers, by the year, are calculated in a different way… the actual yearly value maybe.

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