Now you know... deal or no deal?

In today's world where shows are PVRed for your convenience and 24 hour news stations have so saturated the arena that it's hard to know when to listen, sports still provides a vehicle for shared experience. Despite all the leagues and games and plays, there is still, from time to time, a story that will grab everyone's attention and get the water cooler buzzing.

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To make sure you're prepped for such moments, In the game is introducing a new feature called Now you know.... Whenever you see that title you'll know that the post will give you the background you need to join a sports conversation (or better yet, initiate one!).

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So, what's the latest buzz?

This could be you!

The story:

Yesterday, Russian hockey superstar Ilya Kovalchuk signed a record-breaking 17 year, $102 million deal. Just hours later, the powers-that-be at the NHL rejected the deal, rendering it void.

Ilya annouces the deal

The details:

Ilya Kovalchuk has been the most sought after free agent this summer. As a free agent, Kovalchuk is allowed to sign with whatever team he chooses (non-free agents are traded by their teams and don't often have a say in where they have to play).

Hot commodity

He played last year for the New Jersey Devils, and they did not want to lose him. They therefore offered him this lucrative, long term deal, and he accepted.

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The problem, however, is that the deal is a bit...fishy. You see, the NHL has a collective bargaining agreement (or CBA) with the players. One element of this agreement is that there is a hard salary cap in place for all the teams. This means that each team is limited as to how much they can spend on player salaries in any given year. The idea behind this is that it 1) helps keep player salaries from spiralling too out of control because there is a limit to how many dollars can be spent around the league and 2) prevents the richest teams from buying up all the best players and dominating year after year.

By spreading the $102 million over 17 years, however, the Devils essentially found a way to make sure they would be under the salary cap. It's a good deal for Kovalchuk because the money is front-loaded (he'd make only $550,000 in the last 5 years of the deal). This means he gets the majority of the money right away, and since it's extremely unlikely that he will still be playing 17 years from now (he would be 44), he won't really lose if he retires before the contract is fully paid out.

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I...have nothing to say

The NHL, as poorly-run and stupid of an organization as it often seems to be (that's a rant for another day), could still figure out that Kovalchuk and the Devils were trying to pull the wool over their eyes.

The fallout:

1) The NHL's rejection of the deal will be challenged by both the Devils and the Player's Association, so this story could drag on for awhile.

2) In the meantime, the NHL has essentially put Kovalchuk back on the market. It remains to be seen if the Devils can come up with a new deal that will satisfy both the superstar and the league, or if Kovalchuk will take his talents to another team.

3) If the NHL decision stands, it will no doubt have an impact on future contract negotiations around the league. If it doesn't, we will surely see a lot more of these mammoth, super long-term deals in the future.