UPDATE: NHL investigating Hossa, Pronger contracts

http://slam.canoe.ca/Slam/Hockey/NHL/Chicago/2009/07/30/10319376-sun.html?cid=rsssportsslam!%20hockey

Basically, there are allegations that they discussed him retiring before the term is over (like we all did). Chicago could get fined $5M and lose some draft picks.

“We’re trying to understand how it was negotiated and whether the intent and effect is to circumvent the cap,” wrote Daly.

Well, DUH!

Well, unless they've got it written down or in an email or on a wire tap... this will be hard to prove.

If they were worried about possible circumvention issues, they should not have registered it. I think that ship has sailed.

Yeah, why would they let it go through in the first place?

Here's the full article.

NHL investigating Hossa's new contract

By BRUCE GARRIOCH, SUN MEDIA, July 30, 2009

The NHL is investigating whether Marian Hossa’s new 12-year, $62.8-million (all terms US) contract with the Blackhawks circumvents the collective bargaining agreement and the salary cap, Sun Media has learned.

The ’Hawks could be facing a maximum fine of $5 million and the loss of draft picks if the league’s investigation uncovers proof of allegations that Chicago discussed the possibility of Hossa retiring before the end of the deal, which would end Hossa’s cap hit.

NHL deputy commissioner Bill Daly confirmed the investigation in an e-mail yesterday, stating that league officials are concerned with the structure of the contract.

What it boils down to is Hossa’s cap hit over the 12 years is $5.23 million a season, but for the first seven years, he’ll make $7.9 million a season before dropping to $4 million in 2016-17.

It’s the final four years of the deal that have the NHL up in arms as Hossa is scheduled to earn $3.5 million, period.

If Hossa were to retire after the eighth season, the $5.23-million cap hit would disappear, too.

“We’re trying to understand how it was negotiated and whether the intent and effect is to circumvent the cap,” wrote Daly.

“This was the first of the long-term contracts that took a player out past the age 40 and the value of the contract in its ‘out years’ was dramatically lower than its early years.

“We want to know if the possibility of player retirement was ever discussed or even contemplated.”

“The NHL is looking to put a damper on these 10-plus-year contracts with throwaway years tacked on at the end,” a league executive said last night. “They are building a strong case against Chicago to make an example of them.

"This issue won’t just go away. Lots of other GMs are supporting the league here.”
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I agree. All long term contracts should be thoroughly investigated to see if they are in conformity with the CBA.

Before they're okayed by the league though.

just curious how would that work it says the league would take away draft picks but would that just make the round 29 or would they randomize who got it or i dont know how would it work??

Anyone think Dale Tallon will seek his revenge??

This could open a can of worms. Zetterberg is signed until he's over 40 I believe. I suppose the NHL could say the same thing about the Wings and that contract. Any team who signs a player until they are 40 on a huge term is banking on the player not playing out the full deal. It's a pretty obvious tactic to lower the yearly cap hit. This is the league's fault anyway by having that stupid over 35 clause with regards to the cap hit. Someone should fine Bettman $5 million. The league left this loophole and now they expect the teams to not use it? Please....

Has Zoolander met an untimely demise?

The NHL is like all those times when you have a really smart comeback to use, except you're like two weeks later in the shower going over the scenario again when lightning strikes with that great retort.

Way to be late to the dance idiots. What did you think teams were signing guys into their 40s for?

MurderOnIce wrote:Has Zoolander met an untimely demise?

Yeah I wanted to change my avatar, but keeping the nick didn't seem right without it.

Bass Destruction wrote:Anyone think Dale Tallon will seek his revenge??

Revenge for what? He's got a pretty sweet deal for the next three years.

hemlock wrote:This could open a can of worms. Zetterberg is signed until he's over 40 I believe. I suppose the NHL could say the same thing about the Wings and that contract. Any team who signs a player until they are 40 on a huge term is banking on the player not playing out the full deal. It's a pretty obvious tactic to lower the yearly cap hit. This is the league's fault anyway by having that stupid over 35 clause with regards to the cap hit. Someone should fine Bettman $5 million. The league left this loophole and now they expect the teams to not use it? Please....

The points our Members raise are all excellent...and gives rise to the question as to whether the reported 'investigation' is just political posturing.

Or perhaps sour grapes by teams who lost out in the bidding war for certain UFAs?