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CBA 101: The Kovalchuk Rule

During the 2010-2011 offseason the New Jersey Devils landed the grand prize of Free Agency, Ilya Kovalchuk, when he was signed to a 17 year $102 million contract. That contract was, as many expected at the time, rejected by the NHL because it was deemed to circumvent the salary cap. At the time, Kovalchuk was 27 years old, so the contract would take him to age 44. Ultimately, the contract was re-worked to a 15 year $100 million deal, and the Devils were penalized to the tune of $3 million in cash, a third round pick in 2011, and a …

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CBA 101: No-trade and no-movement clauses

The standard player contract (SPC) of a Group 3 unrestricted free agent can contain a specific clause which prevents the player from being involuntarily moved from their current team. There are two types of clauses, the no-trade clause and the no-movement clause. As you might imagine, the no-trade clause prevents a player from being traded to another team without their express permission. A no-movement clause not only prevents the player from being traded, but also prevents their relocation by loan or waivers as well. So a player with a no-movement clause could not be sent down to the AHL without agreeing (which, …

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CBA 101: Contract Buy-outs

There are a limited number of ways that a team is able to get out of a contract given to one of their players. One such way is to buy  out the contract, which relieves of the team of their contractual obligation to the player, but does still result in “dead cap space” which is essentially cap space being used on a player that isn’t with the club. Typically, a team would exercise a buy out in order to get out of a bad contract in order to see some cap relief, much like the New York Islanders with Alexei …

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CBA 101: Offseason Salary Cap

During the offseason, the upper limit of the salary is temporarily raised by 10 percent so that teams have the ability to manage their rosters with a little more freedom. Many people turn a blind eye to this fact and solely look at the real upper limit of $70.2 million; often times already putting players out of their minds that are unlikely to play with the team that season. However, in the case of a team like the Flyers, this temporary upper limit can sometimes be a concern. From the Collective Bargaining Agreement, Section 50.5 (c)(ii)(B): Nevertheless, in order to …

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CBA 101: Everything Shea Weber

With #WeberWatch in full effect, I thought I would try something different with this week’s CBA 101 article. The signing of Shea Weber to an offer sheet has brought a few lesser known aspects of restricted free agency to the forefront. I thought I would use this as an opportunity to touch on them. The first concept I’d like to discuss is regarding Weber’s restricted free agent compensation. When the offer sheet was first signed there was quite a bit of confusion as to what the compensation would actually be. Many people thought that it would be two first rounders, …