Fans are waiting for a resolution. So is Ilya Kovalchuk(notes). But it’s not just those interested parties watching closely. The result of the NHL’s decision to reject Kovalchuk’s 17-year, $102 million contract with the New Jersey Devils figures to create waves across the National Hockey League.
 
On Wednesday morning, the NHL made official its decision, which SN reported late Tuesday.
 
"The contract has been rejected by the league as a circumvention of the collective bargaining agreement," deputy commissioner Bill Daly said in a statement. "Under the CBA, the contract rejection triggers a number of possible next steps."
 
And that’s what’s being decided. The Devils and Kovalchuk can re-work the deal to the league’s satisfaction. Or the next step could be a grievance from the NHLPA, which released a statement on Wednesday saying the association is "analyzing the basis upon which the NHL rejected the contract."
 
The players’ union has a team of labor lawyers reviewing the case, and it has been in contact with Kovalchuk’s agent, Jay Grossman, as both sides determine how to proceed.
 
In the past, the association showed an eagerness to fight for the rights of players to structure contracts similar to Kovalchuk’s deal, with minimal salary at the end of the contract to drive the cap hit lower.
 
While the league was investigating a similar contract from the Chicago Blackhawks for Marian Hossa(notes) last summer—one it eventually approved—then-executive director Paul Kelly was adamant the union would fight for the long-term contracts.
 
"This is an obvious effort by the league to attempt to chill the market for long-term contracts," Kelly wrote in an e-mail to Sporting News last summer, regarding the league’s investigation into Hossa’s contract. "The NHLPA will take whatever steps are necessary to insure that players continue to have the unfettered ability to negotiate contracts that are compliant with existing CBA rules."
 
Part of the problem for the NHL is whether Kovalchuk will play through the full length of the contract. He would be 44 when the pact expired.
 
There also is a crucial time element to the Kovalchuk case. Every day he fights for this deal means one less day on the open market as an unrestricted free agent. The Los Angeles Kings have indicated they might still be interested, but the Kovalchuk market could dry up if the fight drags out.
 
Somewhere there’s a balance between what’s best for the union and best for Kovalchuk. But these long-term deals are contracts players want the right to negotiate. Mark Guy represents a number of young NHL stars who will be watching this closely, including Drew Doughty(notes), Steven Stamkos(notes) and Bobby Ryan(notes).
 
His agency, Newport Sports Management, negotiated a 12-year deal for Mike Richards(notes) and a seven-year deal for Chris Pronger(notes) last summer.
 
"We’re going to have to wait and see what the fallout is from [Kovalchuk’s deal], what the resolution is," Guy said. "But the precedent is there for them, we’ve been involved in a few of them."
 
Guy said negotiations with the Kings regarding Doughty are in the early stages, with both sides agreeing they want to meet for formal discussions. The same goes for the Lightning and Stamkos.
 
"We’ve had the same discussions with Steve (Yzerman) as we’ve had with Dean (Lombardi), that it’s a priority for both organizations and for us," Guy said.
 
Contract length hasn’t even been discussed yet with either player and the reality is, both might be too young for a Kovalchuk-like contract. But Zdeno Chara(notes) isn’t. Nor is Joe Thornton(notes) or Alexander Semin(notes)—and all those players can become unrestricted free agents next summer.

They’re surely watching. Most of hockey is watching. It’s a decision that could impact a lot of players.
 
This story appears in July 22’s edition of Sporting News Today. If you are not receiving Sporting News Today, the only digital sports daily, sign up today.
 
Staff writer Craig Custance covers the NHL for Sporting News. E-mail him at ccustance@sportingnews.com.

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