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Entries with the tag: kovalchuk
As you know by now, Judge Bloch has ruled that Ilya Kovalchuk is a free agent. Why? Well, his contract is invalid, so back to the bargaining table he goes. Much has been made of this fact, and pundits are theorizing intently as to whether he signs again in New Jersey, or heads somewhere else. Is LA still interested? Is Russia a serious option? Toronto? (I just had to mention Toronto because, well, they come up in reference to every free agent of any importance). While the hockey world speculates on Ilya-gate and the next move of the Kovalchuk camp, I would like to focus on the tidbit regarding “investigations” that came out of this ruling. Namely, that the NHL is looking into four other contracts and investigations are ongoing. Gary Bettman and Bill Daly are out on the streets in Vancouver, Chicago, Philadelphia and Boston, intimidating witnesses and interrogating suspects.
That’s right, it’s Law and Order: CIU (Contract Investigations Unit).
What could come of these investigations? Probably nothing, let’s start right there. Any notion that the Stanley Cup will be taken away from Chicago because Hossa’s contract was ineligible is moot. If that did happen though, Flyers fans would be pretty happy. Except, wait, the Pronger contract is being investigated. That would mean the second-last team to be eliminated would get the Cup. But don’t get your hopes up, Habs fans, that’s a pipe dream, and one hell of a long pipe.
In light of the recent debacle, known as the Ilya Kovalchuk contract saga, and listening to and reading wide ranging opinions on various radio stations and print media, I can’t help but thinking back to the lockout and lost season of 2004-2005.
The main issue of the CBA negotiations was the idea of creating “cost certainty” for the owners. Gary Bettman wanted to ensure that player salaries were linked to league revenues. After a lost season, Bettman and the owners were able to get the salary cap or “cost certainty” that they desired. Player’s salaries are now guaranteed to be 54% of league revenues and teams must meet a salary cap floor.
The salary cap for the 2005-2006 season was set at $39 million with a salary cap floor just over $21 million. In comparison, the current salary cap for the 2010-2011 season is set at $59.4 million with a cap floor of $43.4 million. The salary cap has increased by over 40% in its first five seasons of existence and the cap floor has more than doubled! That is a pretty impressive growth rate considering that returns in the stock market and most people’s pensions have shrunk. What is even more perplexing is that the salary cap floor is now more than 10% higher than the original salary cap.