It seems like everyday, every hour, there is a tweet or a post or an article about the Ilya Kovalchuk saga. Now, the NHL is set to approve the 15 year, $100 million deal for Kovalchuk, but with a few conditions. As per Larry Brooks, who broke this last night, the NHL has two conditions for approving the Kovalchuk deal, and allowing the Marian Hossa and Roberto Luongo deals to stand.
1. That the cap hit on future multiyear contracts will not count any season that ends with the player over 40 years of age. The cap hit would be based on the average salary of the seasons in the contract up to age 40.
2. That the cap hit on future contracts longer than five years would be calculated by granting additional weight — perhaps the average — to the five consecutive years with the largest average salary.
Should the union not accept these terms, or if a negotiated deal is not reached by the Friday 5pm deadline, the league will reject the Kovalchuk deal, and look to decommission the Hossa and Luongo deals. Should the union agree, the aforementioned contracts, and presumably the other questionable contracts, will be grandfathered into the new agreement.
These two conditions are fair conditions, as it is rare that a player is effective, or even playing, at the age of forty. Sure, there are exceptions, but they are just that: exceptions to the rule. To put numbers to this, if Marc Staal were to sign a 20 year deal for $100 million, a deal expiring when Staal would turn 42, the original cap hit would be $5 million. Under the new stipulation, the cap hit would be $100 million over 18 years ($5.55 million), as the two years after 40 no longer apply to the cap hit.
The second stipulation is a bit more complicated. If the contract is front or back loaded in any way, then the cap hit would fluctuate based on the length and weight of the contract. Based on Brooks’ statement, it appears that the five heaviest years will have a higher cap hit than the rest of the contract. Using the hypothetical Staal example above, if the contract has a first five years of an annual $8 million salary, then the cap hit would be $8 million for the first first years, and $5.55 million for the remainder of the deal.
More analysis after the jump