Well, the National Hockey League has come down hard on the New Jersey Devils for the 17 year $102 million dollar contract that they signed Ilya Kovalchuk for and which they rejected. The Devils were fined $3 million dollars, which will not I repeat will not count against the Salary Cap as was agreed by the NHL and the NHLPA in the front-loaded contract ultimatums last weekend. The Devils were also forced to surrender their 3rd round draft pick in 2011 and a conditional 1st round pick in any of the next four drafts.
The team will choose when they want to surrender the pick and must notify the league of the decision by the conclusion of the Stanley Cup Final in one of those years. They are unlikely to give it up in the 2011 Draft since they would not have a pick in each of the 1st three rounds. The Devils dealt their 2011 2nd rounder to Nashville in the Jason Arnott trade, so that would be the reason.
Here is Tom Gulitti's explanation of the articles of the CBA which deals with the fine:
As a result of the finding by Arbitrator Richard Bloch on August 9, 2010, that Ilya Kovalchuk’s initial free agent contract with the New Jersey Devils, dated July 19, 2010, constituted a circumvention of the NHL/NHLPA Collective Bargaining Agreement (the “CBA”), the National Hockey League announced today that the Club has been disciplined in accordance with Section 26.13(c) of the CBA as follows:
The Club has been fined $3 million.
The Club will forfeit its third-round draft choice in 2011 as well as a first-round draft choice in one of the next four Entry Drafts. It will be the Club’s decision when, within the next four years, it will forfeit its first-round choice. The Club must advise the League of that decision by the day following the conclusion of the Stanley Cup Final in the calendar year in which the choice will be forfeited. Per the terms of the settlement reached earlier this month by the NHL and the NHLPA, there will be no corresponding reduction in the Club’s Payroll Room resulting from the Club fine.
The League now considers the matter closed and will have no further comment on the situation, including with respect to the discipline that was imposed today.
Source: NHL hammers Devils with $3 mil fine and loss of 3rd and 1st-round draft picks for Kovalchuk contract
I expected this penalty, the loss of the 1st round pick in one of the next few picks and some sort of financial ramifications. These are harsh penalties, but at least there is no cap restrictions meaning they can conduct player personnel business in a careful manner as usual. Remember Guys, Kovalchuk is now under a 15 year $100 million dollar deal with the Devils and will arrive back in New Jersey this week.
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