NHL still investigating Marc Savard's contract extension
You may recall back in December that the NHL was investigating whether or not Marc Savard's front-loaded, cap-friendly contract extension violated the "spirit of the CBA". Then, time passed and we just assumed that the NHL had given this move their seal of approval. Well, it turns out that the NHL has been investigating this situation all along...or so they say. Either that or a certain team from New Jersey tried to signed a certain Russian superstar to a 17 year, $102 million deal, which drew a red flag to other front-loaded contracts.
Arbiter Richard Bloch ruled in favor of the NHL in Ilya Kovalchuk's recent arbitration case, voiding Kovalchuk's 17-year deal with the New Jersey Devils. Bloch ruled that the 17-year, $102 million contract circumvented the league's contract regulations under Article 26 of the NHL's collective bargaining agreement. One of the main points of contention is that the contract extends until Kovalchuk is 44 years old, which is significantly longer than the average NHL career, thus full performance of the contract is unlikely.
Globe & Mail hockey scribe and the former Godfather of SBN Hockey, James Mirtle wrote that Bloch noted that contracts of several other NHL players are being looked at by the league including Marc Savard, Roberto Luongo, Chris Pronger, and Marian Hossa. All of these deals were approved and registered with the league, but since they have not gone into effect yet could still be voided.
Bruins' General Manager, Peter Chiarelli released the following statement regarding Marc Savard's 7-year, $28 million extension:
"We are cooperating fully with the League in its investigation of the Marc Savard contract extension. The League informed us upon their registration of the contract on December 1, 2009 that they would be investigating the circumstances surrounding this contract. From that point on, they commenced their investigation and it has been ongoing since then. On August 4th, I met with two League appointed lawyers as part of the investigation. We will continue to cooperate with the League in any future investigative proceedings if necessary and we will have no further comment on the matter at this time."
The NHL is in a no-win situation here. If they push forward with investigating these "loophole" contracts, they look like they are back-peddling on decisions they made months ago and leave teams scrambling to fill out their rosters late in the off-season. If they let these deals go through and not allow the Kovalchuk deal, it gives the appearance that they are not being fair.
I just don't see anyway that they can overturn contracts that were already signed and registered with the league office. The Kovalchuk deal was challenged by the league immediately and was never registered. I think that is the big difference between Marc Savard's situation and Ilya Kovalchuk's.
The truth is that this is a major loophole in the CBA and it was only a matter of time before something like this happened, but let's be honest, Lou Lamoriello ruined it for everyone. 17 years? Really, Lou? He is like the idiot, drunken freshman that tried to drink a handle of Rubinoff, got his stomach pumped, and instantly turned your dorm into a dry building. Way to go, Lou!
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First off, good analogy.
I don’t get how the NHL is going to get this one voided without either the B’s or Savard’s side pushing them to void it. 7 years is not egregious, nor is it ridiculous to think that a player of Savard’s caliber would intend on playing until he’s 40, especially now that he’s in the back half of his career. He wants to be here long term, he knows his value is not going to be what it is now as he gets older, so why not give the team a break and help yourself get a Cup?
And if the NHL does somehow void this thing, then Bruins fans really need to storm Prudential Center (in Newark, not the Back Bay) with torches and pitchforks. It would put the Devils up in Habs-Flyers hate territory for me. I don’t think its going to happen, but this is the NHL, where stupidity is made.
While Bloch mentioned the length it wasn’t his main reason for rejecting the contract. The main reason was the salary structure that payed over 90% of salary in a subset of years with extra years tacked on to lower the cap hit. I don’t know all the specifics of Savrard’s deal but sounds like it fits that description, as does Hossa’s, Luongo’s, and Pronger’s.
Savard’s contract is like that. But how can Bloch and/or the NHL prove intent? That’s why the length matters – Kovalchuk’s deal was so ludicrously long that it was obvious they were gaming the system. But 7 years isn’t outrageous, nor is the idea that Savard might still want to be playing at 39 and 40. You can argue that the last two years are just “tacked on”, but it can also be argued that Savard probably wants to retire a Bruin, recognizes that the value of an aging player is going to depreciate, especially on a team with as much youth as the B’s, and really doesn’t mind playing for the league minimum if it means he gets more shots at a Cup.
Every contract is different, the Savard contract may be similar to Kovy’s on the surface, but as the players are two different people at two different points of their careers, it cannot be a simple apples-to-apples comparison.
It’s also that the Kovalchuk contract is such an egregious example. I’m pretty sure that’s why they went after that one at all – it was so bad they knew they could win arbitration. With that precedent they could very well go after the other ones.
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by Cornelius Hardenbergh on Aug 12, 2010 10:07 AM EDT up reply actions
The reason these deals are crazy is that the player can retire and everything’s tied up in a nice neat little package. Pronger’s doesn’t have that part since it’s an over-35 contract.
Then again they could also be circumventing the cap by having these players move to teams looking to spend less and hit the cap floor at the end of the contract. We’re getting a new CBA in a year anyhow (assuming the league doesn’t lock out the players again and fold) so who knows how they’ll be treated.
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by Cornelius Hardenbergh on Aug 12, 2010 9:17 AM EDT up reply actions
LOL!!!
“…but let’s be honest, Lou Lamoriello ruined it for everyone. 17 years? Really, Lou? He is like the idiot, drunken freshman that tried to drink a handle of Rubinoff, got his stomach pumped, and instantly turned your dorm into a dry building. Way to go, Lou!”
Great analogy!!!
LET'S GO B's!!!
I figured youd bejumping for joy about the possibility of losing Savard, SCOC
And I beat you to it :D
and that final line is awesome
That place was for diehard sports fans. I only follow my team when they're in the playoffs" - Homer Simpson
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by bestbostonsports on Aug 10, 2010 11:57 PM EDT reply actions
Arenacale had a fanshot up before you put up a fanpost and SCoC has a real job where he can’t be on here all the time so he’s usually slow on summer news stories like this.
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by Cornelius Hardenbergh on Aug 11, 2010 8:42 AM EDT up reply actions
I know
But Im kidding around, Cornelius
That place was for diehard sports fans. I only follow my team when they're in the playoffs" - Homer Simpson
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by bestbostonsports on Aug 11, 2010 11:02 AM EDT up reply actions
Very funny analogy, but so true.
Nothing will come of the Savard contract it is too late, but Lamoriello definatly changed the way future contracts will be processed. Now it way be more difficult to negotiate these cap friendly contracts because that bozo Lamoriello tapped into a bottle of Kovi’s finest Stoli and signed away with monopoly money.
Yeah, I’m not too worried about Savard’s deal, considering Hossa’s is worse and I doubt the league would do anything to Chicago right now, considering they’re just getting that market back.
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by Cornelius Hardenbergh on Aug 11, 2010 8:51 AM EDT reply actions
Great analogy re: Lamoriello.
But, I’m unconvinced that this was completely unintentional on his part. The Devils have always been a team that preaches fiscal responsibility. I wouldn’t be at all surprised if they were like “you know what? Let’s push the limits on this and see if we can force it to be rejected.”
There’s no way that the Savard deal is getting overturned. It’s entirely possible that a finesse center with impeccable passing skills could still play at 39. But, the uncertainty will prevent the Bruins from trading him in the interim. I refuse to think this is a bad thing.
Part of me thinks, especially considering what he said at the press conference announcing the signing, that Lou was purposely pushing this as far as possible to see where the line was.
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by Cornelius Hardenbergh on Aug 11, 2010 9:50 AM EDT up reply actions
ah Rubinoff
Amazing and awful memories of that stuff first week of freshman year. After mixing up half-rubinoff, half-Gatorade mixers we proceeded to sprint down Huntington Ave, mixers in hand whilst chugging, to watch the Wentworth Leopards try and play hockey…….
the reason i wrote this random story is because there is no response i could write that hasn’t already been said. this won’t happen.
the end.
love the drunken freshman analogy
But there’s a huge difference between a 7 year extension and a 17 year contract.
Especially when the last 5 years of the 17 year one have the superstar playing at lower than what would be the then-minimum salary (assuming it doesn’t go down or stay the same in 10 years). Kovalchuk’s contract does wonky things. There’s no incentive for him to play when it gets cheap.
I don’t think there’s much incentive for Savard to play, either, but I also don’t see him running off to finish his career in Russia.
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by Cornelius Hardenbergh on Aug 11, 2010 4:52 PM EDT up reply actions
I believe that Hossa's contract began this last season 09-10
How can the league void a contract under which a player has already been paid? If they are being truthful in their statement that they haven’t actually registered the contracts of the accused (Savard, Luongo, Pronger, etc.) then I guess they can void them, but it makes no sense as they could have voided them at the time of submission. If the league felt so strongly that the contracts were a circumvention of the CBA they should be dealt with on an individual basis. Also I don’t believe that the main reason of the conflict is the length of most of these deals as it is with the low paying finishing years of the contracts with players earning league minimum or close to that as a way to lower the overall cap hit for the team.
All you need is Leafs
Its in the CBA, they can void a contract within 60 days of discovering that it constituted a circumvention. They can try to argue that they only learned what deals circumvented the cap after the Kovalchuk decision on August 9, 2010. 60 days takes them into October.
They’ve also officially “been investigating” since the beginning of the deals, theoretically. Every time a deal like this came out, the NHL said they were investigating a day or two later. I haven’t heard anything about the investigation ending, per se.
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by Cornelius Hardenbergh on Aug 12, 2010 9:08 AM EDT up reply actions
Been on an extended vacation, so I’m just coming back to see what is up on the blog. I take it there has been no further updates?
nope
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by Cornelius Hardenbergh on Aug 18, 2010 9:29 AM EDT up reply actions

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