Oct 24, 2012, 1:00 PM EDT
With all the rhetoric emanating from each side of the NHL’s labor dispute, we’ve decided to bring in an actual lawyer to answer a series of questions. Hopefully it will prove useful to you, the reader, because it’s costing us $500 an hour. Please welcome to ProHockeyTalk, sports legal analyst Eric Macramalla.
PHT: Greetings, Eric. Both Alex Ovechkin and Ilya Kovalchuk have threatened to stay in the KHL should a new NHL CBA effectively reduce salaries on current contracts. Ovechkin thinks “it would be possible to annul [his contract with the Capitals] through the court.”
Could these guys actually legally get out of their contracts?
EM: Not really — but sort of. (And yes, it is these types of nonsensical answers that make people hate lawyers.)
First, as I covered here, if the players and owners agree on a rollback and that agreement is dropped in the CBA, then that pay reduction is lawful. So that means Ovechkin or Kovalchuk wouldn’t be able to say that their cut in pay is somehow unlawful, and by extension, grounds to invalidate their contracts. However, they might still be able to get out of them.
An NHL contract, which is called a “Standard Player Contract” or an “SPC”, provides at Section 14(b) that a team has the right to terminate a contract if that player shall “fail, refuse or neglect to render his services hereunder or in any other manner materially breach this Contract”.
Not rendering services would include not showing up for work. So while Ovechkin and/or Kovalchuk wouldn’t be in a position to challenge the validity of their contracts, they could elect not to return to the NHL, thereby setting in motion a series of events that would end with their clubs terminating their contracts.
Before termination, that same SPC at Section 4 says that a team can suspend a player without pay for not discharging the obligations under his contract. Again, that would include not playing for the team.
Their teams could also look to sue for breach of contract, which would entitle them to an award of monetary damages. They wouldn’t, however, be able to sue to force the players to come back and play.
There is one more issue. The NHL and the KHL have an understanding that each league will honor the contracts of the other league.
“[NHL deputy commissioner] Bill Daly confirmed in writing what our practice has been, namely, we respect their contracts and we expect them to respect ours.” commissioner Gary Bettman said.
So there would be pressure on the KHL not to allow Ovechkin and/or Kovalchuk to play in its league. However, it would just be that – pressure. As it stands, there would be no real legal recourse for the NHL if it wanted to force the KHL to bar the players from playing.
In conclusion, if Ovechkin and/or Kovalchuk were really disenchanted with the new CBA, they could take steps to walk away from the NHL.
Something tells me, though, that’s not going to happen.
Eric Macramalla is a partner at a national law firm and TSN’s sports legal analyst. He has covered the legal side of all major sports stories, including the NFL and NBA lockouts, the Saints Bountygate, Barry Bonds and Roger Clemens perjury trials, the Ilya Kovalchuk dispute and the Jerry Sandusky case. You can follow him on Twitter at@EricOnSportsLaw and his sports law blog is located at www.OffsideSportsLaw.com.
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