New Kovy Update ("As the Kovy Turns")

[Jerzey]

We would be and yes we'd be paying

the tradeability (bad word whatever) comes in the last few years when the guy is making like 2-2-1-1-.5-.5 a season, and has a $6 million cap hit... that's what appeals to the "make the floor" teams (like Edmonton)... they only spend two but it counts for 6 mil on the cap

So if we were to sign Ilya to that crazy contract where he would be making 100 mil total with it loaded up front at 10 million per year, we would in fact be responsible for paying him 10 million next year. That's what I thought.

So if that's the contract Ilya and Lou are working on, we are definitely over the cap right now and have to make moves before he signs.

[mddevsfan]

So if we were to sign Ilya to that crazy contract where he would be making 100 mil total with it loaded up front at 10 million per year, we would in fact be responsible for paying him 10 million next year. That's what I thought.

So if that's the contract Ilya and Lou are working on, we are definitely over the cap right now and have to make moves before he signs.

No, because the actual money being paid out each year is irrelevant. The average salary over the life of the contract is what counts against the cap. And due to the fact that a team is allowed to exceed the cap by 10% in the offseason, Lou does NOT need to make a move before signing Kovy. He will, however, need to make a move before the start of the season.

[Jerzey]

Alright I'm getting confused.

The annual salary for an NHL team is now 59 million correct?

The Devils have offered a contract to Ilya that will pay him over 100 million over 17 year with a cap hit of 6 million. But he is supposed to be paid 10 million per year for the first few years.

Towards the annual 59 million that every team has to play with, what do the Devils have to pay for Ilya's contract? The 10 million that they are actually paying him per year or the 6 million that it averages out to for his whole career?

Edit: Thanks mddevfan. Doesn't really make much sense to me but I'll take it.

So really we'd only be 2 million over the cap at this point if it's 6 million per.

Edited July 11, 2010 by Jerzey Devil

[mddevsfan]

Alright I'm getting confused.

The annual salary for an NHL team is now 59 million correct?

The Devils have offered a contract to Ilya that will pay him over 100 million over 17 year with a cap hit of 6 million. But he is supposed to be paid 10 million per year for the first few years.

Towards the annual 59 million that every team has to play with, what do the Devils have to pay for Ilya's contract? The 10 million that they are actually paying him per year or the 6 million that it averages out to for his whole career?

Each team doesn't have $59 million in SALARY, they have $59 million in CAP HIT. A team's cap number is the total of all of the average salarys of the players under contract.

The salary cap has nothing to do with the acutal checks the players are cashing. Just remember that the cap hit is the average salary over the life of the conract, and the cap hit is what matters when dealing with cap space.

[thelastonealive]

Alright I'm getting confused.

The annual salary for an NHL team is now 59 million correct?

The Devils have offered a contract to Ilya that will pay him over 100 million over 17 year with a cap hit of 6 million. But he is supposed to be paid 10 million per year for the first few years.

Towards the annual 59 million that every team has to play with, what do the Devils have to pay for Ilya's contract? The 10 million that they are actually paying him per year or the 6 million that it averages out to for his whole career?

Edit: Thanks mddevfan. Doesn't really make much sense to me but I'll take it.

So really we'd only be 2 million over the cap at this point if it's 6 million per.

That's the whole point of these ridiculously long contracts. Rather than completely hamstringing a team by paying a guy $10 million a year for, say, ten years ($10 million cap hit, $100 million contract), you pay a guy his $100 million contract, but you spread it out over 17 years. You frontload it so the guy still makes the majority of his money in the early years, but since the cap hit is always simply the average salary across the length of the contract, you're cap hit is lower.

Do the Devils have a self-imposed salary limit that they'll play out per yer, regardless of cap? (i.e., are they balking at paying Ilya $10 million in the first year, despite the fact that the cap hit would be lower?) Perhaps, though I'm doubting it in this case. I get the feeling if the salary cap wasn't an issue, that the Devils wouldn't mind paying Brian Rolston his contract and still adding Ilya Kovalchuk at the $10 million for the first few years. Unfortunately, the salary cap is the issue.

[Amberite]

Jerzey Devil: This should make things easier for you - there are TWO amounts of money each year that a team has to deal with for every contract.

1) There is the money that the team ACTUALLY pays the player for that year (in Kovalchuk's 100M / 17yr case, it would be $10M in the first few years, and less money in later years).

2) And then there is the money that the team is responsible for, cap-wise, but that doesn't actually gets paid to the player in real life, and equals the average payment over the length of the contract ($100M / 17yr = $5.88M cap hit for EACH of the 17 years, even later on when he's only making $750k/year, etc). I hope that clears it up.

As for the Rangers, this talk of Redden getting demoted is garbage. He's not getting demoted, the NHLPA would have a sh!t fit. Not only that, it would also seriously hurt the NYR's ability to sign big free agents in the future. All they can do is trade him, and I can't see any team in the league taking him. We think Rolston is a bad contract, Redden puts him to shame.

[newarkdev01]

I don't want to come off like a dick, but can anyone give a link to an explanation of how the cap hit goes through. I follow that the number for the cap hit is the average over the life of the contract (although that does seem illogical from a league perspective) but there has been so much information during this whole saga it would be nice for actual references.

[Jerzey]

Each team doesn't have $59 million in SALARY, they have $59 million in CAP HIT. A team's cap number is the total of all of the average salarys of the players under contract.

The salary cap has nothing to do with the acutal checks the players are cashing. Just remember that the cap hit is the average salary over the life of the conract, and the cap hit is what matters when dealing with cap space.

Thinking of it like that makes all the difference. Thanks for clearing that up. I did think they had to pay each player their yearly salary and that it went towards the 59 million was.

[Jerzey]

That's the whole point of these ridiculously long contracts. Rather than completely hamstringing a team by paying a guy $10 million a year for, say, ten years ($10 million cap hit, $100 million contract), you pay a guy his $100 million contract, but you spread it out over 17 years. You frontload it so the guy still makes the majority of his money in the early years, but since the cap hit is always simply the average salary across the length of the contract, you're cap hit is lower.

Do the Devils have a self-imposed salary limit that they'll play out per yer, regardless of cap? (i.e., are they balking at paying Ilya $10 million in the first year, despite the fact that the cap hit would be lower?) Perhaps, though I'm doubting it in this case. I get the feeling if the salary cap wasn't an issue, that the Devils wouldn't mind paying Brian Rolston his contract and still adding Ilya Kovalchuk at the $10 million for the first few years. Unfortunately, the salary cap is the issue.

Yeah it makes much more sense to me now why they'd do a contract like this. Thanks.

Jerzey Devil: This should make things easier for you - there are TWO amounts of money each year that a team has to deal with for every contract.

1) There is the money that the team ACTUALLY pays the player for that year (in Kovalchuk's 100M / 17yr case, it would be $10M in the first few years, and less money in later years).

2) And then there is the money that the team is responsible for, cap-wise, but that doesn't actually gets paid to the player in real life, and equals the average payment over the length of the contract ($100M / 17yr = $5.88M cap hit for EACH of the 17 years, even later on when he's only making $750k/year, etc). I hope that clears it up.

As for the Rangers, this talk of Redden getting demoted is garbage. He's not getting demoted, the NHLPA would have a sh!t fit. Not only that, it would also seriously hurt the NYR's ability to sign big free agents in the future. All they can do is trade him, and I can't see any team in the league taking him. We think Rolston is a bad contract, Redden puts him to shame.

Thanks man. It's funny, I'm 35 and have been following the Devils since around 89-90 but I never bothered learning about how the salaries are structured.

That's one positive thing I can take out of this whole thing even if Ilya doesn't sign with us. I finally have an understanding of how salaries and cap hits work. And that there's a difference.

Thanks again to all the people who helped clear that up for me.

[njd3b1ink]

if the devils were to sign kovy to a 17yr $100m deal the fact that the contract is front loaded and we would have to pay him 10m a year for the first 8yrs or so is irrelevant. what matters is the annual cap hit the devils will take. because the cap hit is determined by the AVERAGE salary of the contract, having a $100m contract over the span of 17 yrs is alot more cap friendly then a $100m contract over the span of say 12yrs. the cap hit of the 100m/17 is 5.8m a yr whereas the 100m/12 is 8.3. so yes the devils will have to pay kovy 10m for the first 8 or so yrs of the contract but the 5.8 is what will hit the cap. the long duration of the contract makes it so kovy will earn his massive amount of money while the devils are keeping his cap hit low so it is possible to build a team around him

[adavid]

Yeah it makes much more sense to me now why they'd do a contract like this. Thanks.

Thanks man. It's funny, I'm 35 and have been following the Devils since around 89-90 but I never bothered learning about how the salaries are structured.

That's one positive thing I can take out of this whole thing even if Ilya doesn't sign with us. I finally have an understanding of how salaries and cap hits work. And that there's a difference.

Thanks again to all the people who helped clear that up for me.

I can't even tell you how much I have learned hanging out here.

[Jerzey]

I can't even tell you how much I have learned hanging out here.

Yeah there are some smart people here who know their stuff. That's why I don't post as often. I just can't keep up with the stats anymore. There was a time where I knew every player in the league.

[thelastonealive]

It's been over an hour since there was a post in this thread. How disheartening.

[msweet]

It's been over an hour since there was a post in this thread. How disheartening.

World Cup

[Scoopscj]

World Cup

[ZeroGravityFat]

wow gtfo

[njd3b1ink]

hey, this is off topic but does anyone know if there is an open scrimage for the devils prospect camp this week? and is so wheb is it?

[Marshall]

hey, this is off topic but does anyone know if there is an open scrimage for the devils prospect camp this week? and is so wheb is it?

IIRC it's to be announced.

[ZeroGravityFat]

TG is going to find out the open scrimmage tomorrow morning.

[RunninWithTheDevil]

22 pages til 200, CMON PEOPLE WE CAN DO THIS TODAY

[Beezer34]

http://www.hockeybuzz.com/blog/Єklund (2.3% accurate) (2.3% accurate)/Mystery-K-chuk-Team-Rumors-Spezza-Perron-Kaberle-Demitra-Gagne-Elmo/1/29297

..in yet another example as to how this Fruad's "sources" consist of throwing throwing darts at random, the NEW Updated list of teams now *rumored* to snag Kovalchuk are; the Devils.. Kings.. Rangers.. Islanders.. Dallas.. Toronto.. Philadelphia.. Ottawa.. Atlanta.. St. Louis.. Anaheim.. Pittsburgh.. Washington.. Detroit.. or the KHL.

It must be great to play a guessing game on a hockey blog, all-the-while claiming to be the inside scoop. Not to mention being the first to pat yourself on the back, when 1 of your 84 rumors actually happens.

[justintime2989]

nice joke scoopscj that made me laugh.

[stevestevens]

Off topic but anyone ever hear of Kovalchuk?

[Marshall]

Off topic but anyone ever hear of Kovalchuk?

Is he ninja or pirate?

[elias2600]

ninja.