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NHL, Devils resolve Kovy contract dispute

Monday, 09.13.2010 / 7:40 PM ET / News
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NHL, Devils resolve Kovy contract dispute
The National Hockey League and the New Jersey Devils on Monday resolved the dispute over Ilya Kovalchuk's League-rejected 17-year, $102 million contract. The rejection of that contract was subsequently upheld by an independent arbitrator.

The Devils will sacrifice a first-round draft pick in one of the next four Entry Drafts as well as their third-round draft pick in 2011. The Devils will determine in which year between 2011 and 2014 they will surrender their first-round pick, and they are to advise the NHL the day after the Stanley Cup Final ends in that calendar year.

The NHL has also issued the Devils a fine of $3 million, but per the terms of the global settlement reached between the NHL and NHLPA earlier this month the Devils will not have to sacrifice any salary cap money.

As part of that global settlement, which set guidelines for contracts of five years or more, the NHL retained its right to impose penalties on the Devils for the ill-fated Kovalchuk contract. The League announced its rejection of the contract on the basis of circumvention of the Collective Bargaining Agreement, citing Article 26, on July 21.

Author: Dan Rosen | NHL.com Staff Writer

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