An arbitrator ruled Monday that the NHL acted properly in voiding Ilya Kovalchuk's landmark 102 million-dollar contract with the New Jersey Devils.
The league had rejected the 17-year contract, saying the longest deal in league history violated its salary cap.
The NHL Players Association filed a grievance against the league.
A hearing was held last week and arbitrator Richard Bloch sided with the NHL in his ruling.
The decision puts Kovalchuk back on the free agent market.
"We want to thank arbitrator Bloch for his prompt resolution of a complex issue," NHL deputy commissioner Bill Daly said in a statement. "His ruling is consistent with the league's view of the manner in which the collective bargaining agreement should deal with contracts that circumvent the salary cap."
The contract would have paid Kovalchuk 95 million dollars over the first 10 years and only 550,000 dollars over the last five years.
Kovalchuk would be 44 in the final season of the contract.
The low salary at the end was implemented to lower the team's hit against the salary cap.
The NHL wants to eliminate this kind of "retirement contract". While several have stood, they opted to challenge this one.
Copyright 2010 AFP American Edition
