Kovalchuk announces RETIREMENT

[flyercanuck]

He wants to go back to the KHL, and this is the only way to do it. Retire legitimately, pick up your puck, and go home.

It's not good for the Devils, but they've known this has been coming for a long time, apparently. But it's good for the Flyers

A long time? He wasn't even there a long time. The guy is 30. What, he knew when he was 25 that he wanted to retire?

[radoran]

the NHL must protect its interests. Perhaps one way to get the message across is to pull out of the Sochi Olympics unless an iron-clad set of policies are created to protect NHL teams from other player moves like this, or teams themselves for that matter, from breaching contracts that were made in good faith.

The hysterical thing about this is that the writer believes this 14-year deal, rejected once by the league and the team was penalized for, was ever made in anything resembling "good faith.

Both sides knew going in that he was not going to finish that contract and would retire in advance. The only question was when.

When the deal was made, the "cap recapture" clause wasn't in place. He's scheduled to make $10, $11, $11, $11 over the next four years (plus change, if memory serves). The Devil's penalty only goes up over those years.

Moreover, as has been noted, the Devils are in serious financial trouble and dropping both Clarkson's contract and Kovalchuk's saves them a lot of cash.

Kovalchuk, on the flip side, can take a huge payday in the KHL and take advantage of the cap exemption for players coming from the NHL (which might seriously be the thing to make a Sochi pullout based upon).

"Good faith." LMAO.

[brelic]

A long time? He wasn't even there a long time. The guy is 30. What, he knew when he was 25 that he wanted to retire?

This is what I mean:

In a statement released by the Devils and General Manager Lou Lamoriello, Kovalchuk said that he had settled on his decision to return to Russia during the lockout, while playing 36 games for SKA St. Petersburg of the K.H.L.

“This decision was something I have thought about for a long time going back to the lockout and spending the year in Russia,” Kovalchuk said. “Though I decided to return this past season, Lou was aware of my desire to go back home and have my family there with me. The most difficult thing for me is to leave the New Jersey Devils, a great organization that I have a lot of respect for, and our fans that have been great to me.”

“After many conversations with Ilya over the past year on his desire to retire from the National Hockey League, Ilya’s decision became official today,” Lamoriello said in the statement. “On behalf of the entire organization, I wish Ilya and his family all the best in their future endeavors.”

It wasn't a complete surprise for Lamoriello. He knew before this past season even began.

[flyercanuck]

This will just further the sentiment that it's to risky to draft a Russian. They might never come over, or quit when you need them the most. It's unfortunate, but that will be the prevailing theory. Having said all that, I would have still taken the chance on drafting Nuich with the #11 pick had Dallas not pulled the trigger. To much upside, talent to pass up at that point of the draft.

The thing every GM has to worry about now is this looming KHL cash bonanza. I keep hearing this 25 mill a year figure thrown around....read it more than once.....AND tax free on top of it. At those outlandish prices will North American players suck it up, put up with the foreign soil and the culture shock....after all, Stamkos can make 50 mill in 2 seasons over there (actually it's 30 mill over the Max allowed in the CBA), that's WAY more than any NHL team can pony up, for a few years, I see some making the journey over there. This is a more legit threat than some think. They need one big non-Russian to defect...kinda like the WHA when they stold Bobby Hull from the NHL...then the floodgates *could* open.

Playing hockey there is one thing. Living there is a whole other . I could see single guys going for the cash...but trying to convince your wife to move there, and have your children raised there?

[flyercanuck]

@brelic

Doesn't surprise me in the least. The only time I ever get surprised by Russian hockey players is when a Datsyuk comes along. He's like the black sheep.

[yave1964]

The worst thing of all of this is the fraud perpetrated on the fans. IF:

Kovy knew and didn't tell the management team, Parise left last year, Clarkson this year. Hell, Tallinder left this WEEK.

Kovy knew and told management weeks ago, management in their financial distress held off and didn't replace him during the free agent frenzy losing fan favorite Clarkson (In their defense, the Clarkson nearly six million a year contract was a huge mistake by Toronto IMHO)thus leaving Devil fans (All 114 of them)screwed by both management and their star player.

And Buttman let it happen. No fighting with the KHL or tying it up for years forcing Kovy to sit on the sidelines while lawyers check each other into the boards.

Eeryone loses, especially the Devil fans.

[DaGreatGazoo]

And there we have it:

Dmitry Chesnokov

It appears SKA will not announce the Kovalchuk signing today. Monday is the most likely day

Edited July 12, 2013 by DaGreatGazoo

[brelic]

Not sure if it has been posted or not, but Kovy is already expected to play in the KHL next year.

From ESPN: "According to Russian media reports, Kovalchuk will play for SKA St. Petersburg next season."

Aside from rad's point that this contract was never really a "good faith" contract, is this something the NHL has to try and prevent? I mean, retiring is a legitimate thing to do. You can't prevent someone from retiring. As long as that means he can never play in the NHL again.

But, I don't get why NJ has to pay him $250K per season until 2025. That makes no sense. He chose to retire, the Devils are screwed because of it, and still have to pay him an annual salary?

[Clarke2Leach]

If I were the Flyers, I would be up in arms over this, especially if Bryz ends up in the K this year. While the Flyers certainly were the authors of a very stupid long term contract, the Devils are no more and no less innocent. The difference being that the Flyers are on the hook for all that money (hello ticket buyers) and the Devils get a comparatively free pass. I wouldn't say that the Devils organization is screwed by this - it might have saved them from folding or relocating. The Devils on ice team is definitely a different story. It's like Mogilny all over again. I guess it figures that all the funny business happens in Jersey.

[AJgoal]

But, I don't get why NJ has to pay him $250K per season until 2025. That makes no sense. He chose to retire, the Devils are screwed because of it, and still have to pay him an annual salary?

They don't have to pay him a cent, Brel. That's just a cap penalty for him leaving. Penalty goes something like this:

Since the Devils received a "cap advantage" (ie, paid him more than his AAV cap hit) over the past three years, and Kovalchuk is retiring before the balancing years kick in, the Devils are forced to "repay" that camp advantage (Applies to anyone that signed a contract greater than 7 years prior to the new CBA). It is calculated by subtracting the sum of the AAV of the contract over the years the player played from the total cash actually paid to the player over that time, divided evenly over the remaining years of the contract. Had Kovalchuk waited to retire until he had played the next 5 years, picking up about 56 of the remaining 77 million, the cap penalty would have been upwards of 3.5 million.

Suter, Weber, Parise, Crosby, and Luongo, whom the rule is named after, are examples of players who have contracts that would fall under this rule.

[Mad Dog]

@brelic

Doesn't surprise me in the least. The only time I ever get surprised by Russian hockey players is when a Datsyuk comes along. He's like the black sheep.

Yeah, Dany Markov probably belongs to that category of "unconventional Russian players" as well. Loved him when he was here and wish he played longer.

[brelic]

They don't have to pay him a cent, Brel. That's just a cap penalty for him leaving. Penalty goes something like this:

Since the Devils received a "cap advantage" (ie, paid him more than his AAV cap hit) over the past three years, and Kovalchuk is retiring before the balancing years kick in, the Devils are forced to "repay" that camp advantage (Applies to anyone that signed a contract greater than 7 years prior to the new CBA). It is calculated by subtracting the sum of the AAV of the contract over the years the player played from the total cash actually paid to the player over that time, divided evenly over the remaining years of the contract. Had Kovalchuk waited to retire until he had played the next 5 years, picking up about 56 of the remaining 77 million, the cap penalty would have been upwards of 3.5 million.

Suter, Weber, Parise, Crosby, and Luongo, whom the rule is named after, are examples of players who have contracts that would fall under this rule.

Ok, that makes more sense. But I thought I read somewhere he was also being paid $250k. I probably had a brainfart.

[Haliax]

The hysterical thing about this is that the writer believes this 14-year deal, rejected once by the league and the team was penalized for, was ever made in anything resembling "good faith.

Both sides knew going in that he was not going to finish that contract and would retire in advance. The only question was when.

When the deal was made, the "cap recapture" clause wasn't in place. He's scheduled to make $10, $11, $11, $11 over the next four years (plus change, if memory serves). The Devil's penalty only goes up over those years.

Moreover, as has been noted, the Devils are in serious financial trouble and dropping both Clarkson's contract and Kovalchuk's saves them a lot of cash.

Kovalchuk, on the flip side, can take a huge payday in the KHL and take advantage of the cap exemption for players coming from the NHL (which might seriously be the thing to make a Sochi pullout based upon).

"Good faith." LMAO.

This is about as succinct a response as there exists on this situation. There were already rumors when the shortened season began that Kovalchuk wanted to remain home in Russia. Those rumors included Datsyuk, but thankfully that turned out better. So if Kovalchuk was going to leave, now was the best time for him to do it. Well, maybe a week earlier would have been better, when they had more options to fill his role. Unfortunately the Devils will still lose that 1st round pick, and for a contract that they barely got anything out of.

Now what happens if he decides he doesn't like it in Russia a few years down the line and wants to come back to the NHL? Is he still obligated to the Devils with that contract? Or would he be able to go elsewhere?

[hf101]

Now what happens if he decides he doesn't like it in Russia a few years down the line and wants to come back to the NHL? Is he still obligated to the Devils with that contract? Or would he be able to go elsewhere?

From what I've read, the NHL and NHLPA didn't address the issue of returning to the NHL after retiring in the new CBA.

They still don't have an agreement for players to play in Sochi and the latest Russian / NHL transfer agreement just ended without a new one in place. So lots of issues to hammer out.

[Haliax]

@hf101

It is odd that there is not something in the CBA to address that situation. It isn't as if a player has never decided to return from retirement before.

For some reason I thought that they had already worked out an agreement for the players to go to Sochi. If this affects that decision negatively at all, I think it would be a mistake. I think all that would achieve is creating ill-will among Russian players still in the NHL, and I'm not sure that that is something that the NHL really wants to do. I think Ovechkin has already commented that he would be attending regardless of the NHL's decision, and I'm sure that there are other Russians that would follow that example. I hope they handle the situation properly.

[brelic]

@hf101

It is odd that there is not something in the CBA to address that situation. It isn't as if a player has never decided to return from retirement before.

For some reason I thought that they had already worked out an agreement for the players to go to Sochi. If this affects that decision negatively at all, I think it would be a mistake. I think all that would achieve is creating ill-will among Russian players still in the NHL, and I'm not sure that that is something that the NHL really wants to do. I think Ovechkin has already commented that he would be attending regardless of the NHL's decision, and I'm sure that there are other Russians that would follow that example. I hope they handle the situation properly.

Ovechkin's another player I can see bolting for the KHL. He's made his fortune already.

[Haliax]

Ovechkin's another player I can see bolting for the KHL. He's made his fortune already.

I could see it at the end of his current contract, but I'm not sure that he would do it before. Depends on how motivated he is to win the Stanley Cup, I guess.

[Polaris922]

#1 the Devils can protest this violation of contract and complain to the IIHF, who would block Kovalchuk from playing in the KHL.

#2 They make more money in Russia than they do here so $70 million is nothing.

[jammer2]

@Polaris922 Some interesting takes on this situation....

Other boards have been speculating that Lou knew about his for a while, but chose not to divulge it to attract both Ryder and Clowe as UFA's....who knows, maybe those 2 don't sign without Kovy on the team?

I don't think the Devil's will protest Kovy leaving, in fact I believe it's with their blessing. As long as the Devil's do not make a formal complaint, the IIHF will not intervene.

Of course, the NHL, who have bailed out the Devils 3 times already on missed loan payments, are in favour of the Devils only having to pay 300,000 towards the cap to get out of this contract, bottom line, a broke team on the verge of bankruptcy gets to skip on the 77 mill, including this years scheduled payment.

By allowing this, have the NHL created a precedent...and thus allowing a brand new circumvention of the cap....a fake retirement. Who says this only applies to Russians....maybe the same scam can be pulled with the Swedish Elite League.....

Someone else mentioned it, but I swear, if the Flyers had tried to pull this with Bryz, the NHL would have laughed it out of their offices. Now, with the precedent set with this mess, the door is ajar for abuse....

[pilldoc]

@Polaris922 Some interesting takes on this situation....

Other boards have been speculating that Lou knew about his for a while, but chose not to divulge it to attract both Ryder and Clowe as UFA's....who knows, maybe those 2 don't sign without Kovy on the team?

I don't think the Devil's will protest Kovy leaving, in fact I believe it's with their blessing. As long as the Devil's do not make a formal complaint, the IIHF will not intervene.

Of course, the NHL, who have bailed out the Devils 3 times already on missed loan payments, are in favour of the Devils only having to pay 300,000 towards the cap to get out of this contract, bottom line, a broke team on the verge of bankruptcy gets to skip on the 77 mill, including this years scheduled payment.

By allowing this, have the NHL created a precedent...and thus allowing a brand new circumvention of the cap....a fake retirement. Who says this only applies to Russians....maybe the same scam can be pulled with the Swedish Elite League.....

Someone else mentioned it, but I swear, if the Flyers had tried to pull this with Bryz, the NHL would have laughed it out of their offices. Now, with the precedent set with this mess, the door is ajar for abuse....

you bring up a very interesting spin on this @jammer2. If Lou knew this and kept it a secret is very compromising position to be in if the truth ever leaked out. Riddle me this, if the Devils were in such dire straits as to keep missing loan payments...then if Kovy stays, is there a real possibilty of NJ losing their franchise and being moved to another city? With Kovy and that monster contract now gone, does this keep the Devils in NJ? For now....

[jammer2]

@pilldoc I'm really not sure doc. I'm thinking that the Devils are losing so much money, that 7-10 mill might matter a bit as far as making the last loan payment, but overall, it's a drop in the bucket when looking at their long term money problems. Don't know how this will be fixed, but Gary is usually adament that franchises stay put, so I guess the NHL will continue to bail them out if needed.

[Polaris922]

@jammer2

It doesn't set a precedent for other franchises unless they also allow the guy to walk without protest. If the league doesn't step in on Jersey they can't step in on anyone else.

As for everyone screaming this would be different with Bryzgalov... Well of course it would! Bryzgalov didn't want to go anywhere and that's the difference. If the team could've convinced Bryzgalov to retire and leave the NHL... That's the only way we would know! But if frogs had wings...

[radoran]

Someone else mentioned it, but I swear, if the Flyers had tried to pull this with Bryz, the NHL would have laughed it out of their offices. Now, with the precedent set with this mess, the door is ajar for abuse....

I completely disagree here. The NHL put in the "cap recapture" clause specifically to issue a penalty in this situation and that's exactly what it is doing.

The door was always open for "abuse" and there were a few franchises that drove 18-wheelers through the door.

Again, everyone knew from the moment the Bryz, Kovalchuk, Pronger, etc. contracts were signed that there was no intention whatsoever of the players making it to the end of the deals.

The commonly used phrase for these sorts of things?

Karma's a bitch.

[jammer2]

@radoran "I completely disagree here. The NHL put in the "cap recapture" clause specifically to issue a penalty in this situation and that's exactly what it is doing."

I'm a little lost here, to this point, all it looks like the NHL did to NJ is give them a huge cap break. There is the first rounder they lost, but that ruling was made before Kovy left. I'm a bit lost here as to how the NHL is punishing the Devils?

[radoran]

@radoran "I completely disagree here. The NHL put in the "cap recapture" clause specifically to issue a penalty in this situation and that's exactly what it is doing."

I'm a little lost here, to this point, all it looks like the NHL did to NJ is give them a huge cap break. There is the first rounder they lost, but that ruling was made before Kovy left. I'm a bit lost here as to how the NHL is punishing the Devils?

Well, the "penalty" under the rules is $300K a year for the next 12 years.

But, if Kovalchuk had played any of the next four years 11.3, 11.3, 11.6, 11.8 then that cap penalty - created after the deal to retroactively punish teams - would have risen substantially.

It could be rationally argued that the steep increase in penalty over the next four (fifth is 10M) years precipitated Kovalchuk's departure at this time and that the happy confluence of a lower penalty, lower salary obligation and lower obligation on the part of the league to buy them out is at play here.

This, again, flies in the face of the idea of the league as 30 teams "competiing" with each other. This is a cartel that controls the flow of hockey in the country. This isn't a "free market".