Then, after arbitrator Richard Bloch rejected the first contract, the Devils finally came up with $100 million deal that, after much discussion, was approved. Now they’ve been fined and had draft choices revoked on top of it, plus they still have to dump contracts to get under the salary cap.
it’s hard to put a value on all of that. How much is a first round draft pick worth in dollars? But you could argue Kovalchuk will, when its all said and done, cost the Devils somewhere between $150 million and $200 million in salary, fines, prospects, draft picks and players. And it’s quite likely that he won’t put another body in a seat in the notoriously fickle New Jersey hockey market.
Kovalchuk cost the Devils $100MM in salary (the net present value will be considerably lower, particularly if you think that there’s going to be a lot of inflation). They were fined $3MM. They’ve lost a third round pick next year and a first round pick in a year of their choosing in the next four years.
I don’t expect MSM writers to know about net present value. Still though, if we follow the math through, Damien Cox thinks that you could argue that a first round pick in a year of the Devils’ choosing in the next four years and a third round pick is worth somewhere between $47MM-$97MM. The best part is that he apparently realizes how stupid it all is – he follows this up with:
Unless Kovalchuk turns into Mario Lemieux, he can’t possibly be worth all this. It’s like the Devils got on a speeding bus and just couldn’t get off.
Perhaps your figures are off?