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NOTE AND RECENT DEVELOPMENT: SALARY CAPS IN PROFESSIONAL SPORTS: CLOSING THE KOVAL-
CHUK LOOPHOLE IN NATIONAL HOCKEY LEAGUE PLAYER CONTRACTS[diams]
[diams] Permission is hereby granted for noncommercial reproduction of this Note in whole or in part for education or
research purposes, including the making of multiple copies for classroom use, subject only to the condition that the
name of the author, a complete citation, and this copyright notice and grant of permission be included in all copies.
* Executive Editor, Cardozo Arts & Ent. L.J. (2011-2012), J.D. Candidate 2012, Benjamin N. Cardozo School of Law.I
would like to thank my family and friends for their limitless love and support and invaluable advice.Special thanks to
Professor Arthur Jacobson, David Adelsberg, David Zimmerman and the entire Cardozo Arts & Entertainment Law
Journal editorial board and staff for helping make this Note what it is today. © 2011 Simon Bernstein.
... As a result of the League's rejection of the contract, the National Hockey League Players' Association filed a griev-
ance on Kovalchuk's behalf on July 26, 2010, which was heard before arbitrator Richard Bloch in August 2010.
Parker went on to say, "the difficulty Daly had in articulating the standard by which the League challenged the three
contracts is troublesome, particularly because several provisions of the Collective Bargaining Agreement suggest that
Clubs and players have substantial flexibility to negotiate compensation packages as they wish." .
.. The League's current
salary cap structure also helps clubs sign promising young players to contracts that pay the players less in the early
years of the contracts, and as the players mature and improve, thereby helping draw more revenue, the clubs can afford
to spend more money on them.
... By expanding the range between the limits by ten percent on each end and forcing all
clubs to pay salaries within this window, the loophole Kovalchuk and the Devils tried to exploit will be closed, and a
bright-line rule for determining which contracts violate the CBA will be created, without eliminating any of the benefits
provided by the current salary cap structure.
... Even with the recent amendments to the CBA, failure to implement this
Note's proposed system will leave the standard unclear, potentially subjecting clubs to abuse by the League selectively
enforcing which contracts to target as circumventions of the CBA.
On June 23, 2001, Russian hockey superstar Ilya Kovalchuk was selected by the National Hockey League's Atlanta
Thrashers with the first overall pick in that year's draft,
and since then has led the League in goals scored.