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Re: Corey Perry an Oiler [message #829375 is a reply to message #829012 ]	Fri, 02 February 2024 15:05

Skookum Jim
Messages: 4332
Registered: March 2006
Location: Burnaby, BC

4 Cups

NHLPA gets extension from NHL to file grievance on behalf of Perry.. indicates its intension to file .. probably result in settlement.. likely a portion of original contract money to Perry.. an equal amount of cap hit to Chicago..

NHLPA had to do this.. teams will start looking for "code of conduct" infractions to terminate bad contracts.. it all started with LA Kings and the Mike Richards case.. NHLPA was "assured" by the NHL back then this wouldn't happen (see below)

https://chicago.suntimes.com/blackhawks/2024/2/2/24059602/co rey-perry-contract-grievance-blackhawks-nhl-nhlpa-deadline-m isconduct

Quote:

TORONTO — The deadline for the NHL Players Association to file a grievance against the Blackhawks related to their termination of Corey Perry’s contract has been extended, NHLPA director Marty Walsh said Friday.

The deadline was originally 60 days after the termination, which put it in late January.

Reading between the lines, the extension allows the NHLPA to keep open the threat of filing a grievance — and NHL deputy commissioner Bill Daly indeed said Friday a grievance had been “threatened” — while likely pushing for a settlement.

“His timeline ran out, so we want to make sure we have enough time to continue forward,” Walsh said.

NHL commissioner Gary Bettman said Perry believes the Hawks did not have proper grounds to terminate his contract over the workplace misconduct incident that took place Nov. 21 during a Hawks road trip to Columbus.

Bettman added, however, that he personally has no problem with how the Hawks handled the situation.

Below is a write up about the Mike Richards case by a lawyer a few years ago.. concerns were made back then.. teams could use "code of conduct" as an easy out for voiding contracts more frequently..

In that case Richards was actually CHARGED with a crime (and convicted) .. transporting DRUGS across the Can/USA border.. which "could" constitute a "Material Breach" of the standard NHL players contract code of conduct .. (this was the LA Kings and NHL's argument).. but the "material breach" aspect was never actually contested.. as it never went to an arbitrator.. it was settled..

In Perry's case .. there weren't EVEN charges.. therefore.. nothing even remotely close to a material breach..

NHLPA needed to contest it.. and I suspect likely win if it ever went to an arbitrator..
Teams should be able to suspend anyone for bad conduct.. but voiding the contract.. and the associated cap hit.. is an entirely different level..

https://www.mcbop.com/hockey-players-contract-terminated-for -material-breach/#:~:text=The%20NHL%20has%20Standard%20Playe r,should%20constitute%20a%20material%20breach.

Quote:

Hockey Player’s Contract Terminated for “Material Breach”

The NHL’s Los Angeles Kings recently terminated the contract of former star Mike Richards. It has since been reported that the team did so due to an incident at the border involving Oxycodone.

This was a surprising move that is likely to be vigorously contested by Richards (who was still owed five years and $22 million under his contract) and his union representatives at the NHLPA.

How did the Kings terminate the contract?

The NHL has Standard Player Contracts which provide, at paragraph 12, that the team may terminate a player’s contract if the player shall:

(a) fail, refuse, or neglect to obey the Club’s rules governing training and conduct of Players, if such failure, refusal or neglect should constitute a MATERIAL BREACH.

(b) fail, refuse or neglect to render his services hereunder or in any other manner materially breach this SPC.

Richards and the NHLPA may now apply to have the termination considered by an independent arbitrator.

Why was this surprising?

Typically, an NHL team who wants to terminate the contract of a player must pay the remaining amount owed to the player and incur a penalty from the league limiting the amount the team can spend in future years under the league’s salary cap. The Kings have apparently dodged both consequences.

What will an arbitrator determine?

There does not appear to be any precedent for an NHL team to terminate a player’s contract on this basis and the Kings certainly face an uphill battle in proving their case.

The arbitrator’s decision will likely hinge on his/her interpretation of what constitutes a ‘material breach’. The Supreme Court of Canada has previously held that “a breach that is ‘substantial’ or ‘goes to the root of’ the contract is often also described as a material breach.” (Guarantee Co. of North America v. Gordon Capital Corp, [1999] 3 SCR 423).

Do the Kings have evidence of an incident illustrating Richard’s failure to obey the team’s rules going to the ‘root of the contract’? Probably not.

This is especially so in light of the fact that the NHL has a comprehensive substance abuse policy geared towards rehabilitating players. The arbitrator may not be happy about the Kings’ apparent attempt to circumvent this policy if the termination did indeed stem from an incident involving Oxycodone.

Will this strategy be used by teams in the future?

Beyond the anticipated vigorous opposition by Richards and the NHLPA, this was the perfect storm. Richards was under-performing in relation to his contract, the Kings had reportedly been trying to get out from under his contract for quite some time, and he managed to get in trouble shortly before the NHL’s free agency period began.

This strategy is not likely to be used in the future. In fact, another Kings player (Voynov.. see link at bottom) was recently sentenced to 90 days in jail for domestic violence, but there are no reports that the Kings consider this to be a material breach.

Friedman article after the Richards settlement (2015).. note the NHLPA was "assured" by the NHL that the settlement wouldn't be used as a precedent for future cases..
https://www.sportsnet.ca/hockey/nhl/30-thoughts-the-aftermat h-of-the-mike-richards-settlement/

Quote:

The most asked question in NHL circles last weekend was, “What’s going to happen with their cap?”

The Los Angeles Kings reached a settlement with Mike Richards, ending the grievance process with a player whose contract was terminated. While bits and pieces have leaked, the exact salary cap repercussions have yet to be shared with the other teams.

But here’s what we do know:

If the Kings had bought out Richards last summer, he would have stayed on their payroll until the end of the 2024-25 season. The cap hit would move from approximately $1.2M this season to $1.7M next year, followed by $2.7M in 2017-18 and a two-season peak of $4.2M in 2018-19 and 2019-20. Then it would stay just under $1.5M for the final five seasons.

With the agreement, Richards’ cash lasts until the end of 2030-31 campaign. As part of a cap-recapture penalty due to decreasing dollar values towards the end of his contract, the Kings lose $1.32M from their cap this year — and the next four — with the settlement amount added to that total. Starting in 2020-21, the team’s only penalty is the settlement itself — and that’s not a high number, believed to be somewhere in the $550,000 per season range on average.

The year-to-year totals apparently vary. That’s huge cap relief for the Kings, especially when you consider his hit was to be $5.75M this year because they did not buy him out.

Privately, other teams are screaming bloody murder and are threatening to make an issue about it at December’s Board of Governors’ meeting. But the NHL is not sympathetic. In a phone conversation, Deputy Commissioner Bill Daly pointed out Article 50 of the CBA does have a mechanism for settlements.

“In our view, the Kings had a ‘Bona Fide’ opportunity to win this grievance,” Daly said. “In that case, they would have no cap hit at all. This way, there’s some penalty.”

You can dispute the merits of Daly’s argument, but when an arbitrator gets involved, all bets are off. All summer, I read how courts don’t like to overrule collective bargaining agreements between two parties. That didn’t stop the NFL from getting crushed by Tom Brady. So, who knows?

Richards hasn’t spoken yet, but it wouldn’t surprise me if he pushed for the settlement. No one had more to lose than he did. If the NHLPA loses, everyone who argues for him still gets paid. If the Kings lose, yes the cap takes a hit, but owner Philip Anschutz is still worth $11.6 Billion, according to Forbes.

If Richards loses, he gets nothing. It’s easy to say, “Hey, you’ve got a good case,” when it’s not your money. I understand why he’d want it for peace of mind.

The agents weren’t thrilled either.

“What’s to stop other teams from trying this?” one asked. The NHLPA did get, in writing, assurances the Richards grievance could not be used as precedent in any future cases.

Quote:

Note (mine): The reason the NHL gave that it wouldn't be used as a precedent was because it was a "unique case", there were actual criminal charges, with conviction, which (in the NHL's opinion) constituted a "material breach" of the code of conduct clause in the standard NHL players contract..

That’s important language. But, we did cross new ground here. Are other clubs saying, “If they did it, we can too?”

For comparison..

There was also the case of another LA King.. Slava Voynov who was actually CONVICTED of SPOUSAL ABUSE and it appears the Kings (and NHL) never considered it a "material breach" of code of conduct.. they still paid him out while he was in jail.. only terminated his contract after he left for Russia..
https://www.latimes.com/sports/olympics/la-sp-olympics-voyno v-assault-20180219-story.html

This "code of conduct and voiding contract" tactic is something new.. and seems to have all started with the Richards case.. NHLPA <b l i n k e d> and are now reaping the result..

[Updated on: Fri, 02 February 2024 15:52]

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Re: Corey Perry an Oiler	By: Skookum Jim on Mon, 22 January 2024 12:23
Re: Corey Perry an Oiler	By: Skookum Jim on Mon, 22 January 2024 12:44
Re: Corey Perry an Oiler	By: Skookum Jim on Mon, 22 January 2024 18:42
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Re: Corey Perry an Oiler	By: Skookum Jim on Tue, 23 January 2024 11:17
Re: Corey Perry an Oiler	By: RDOilerfan on Tue, 23 January 2024 11:23
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Re: Corey Perry an Oiler	By: nullterm on Tue, 23 January 2024 13:30
Re: Corey Perry an Oiler	By: Adam on Tue, 23 January 2024 14:03
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Re: Corey Perry an Oiler	By: Adam on Wed, 24 January 2024 11:54
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Re: Corey Perry an Oiler	By: Skookum Jim on Fri, 26 January 2024 16:33
Re: Corey Perry an Oiler	By: RDOilerfan on Fri, 26 January 2024 16:35
Re: Corey Perry an Oiler	By: Kr55 on Fri, 26 January 2024 16:52
Re: Corey Perry an Oiler	By: Skookum Jim on Fri, 26 January 2024 17:50
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Re: Corey Perry an Oiler	By: Skookum Jim on Fri, 02 February 2024 15:05
Re: Corey Perry an Oiler	By: tardigrade81 on Sat, 03 February 2024 15:41

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