New Jersey Devils re-sign Ilya Kovalchuk***updated***

After Ilya Kovalchuk’s agent Jay Grossman broke silence earlier today announcing the Russian winger will make a decision today regarding his future as a NHL player, the New Jersey Devils announced via Twitter that Ilya Kovalchuk was just re-signed to a contract (as per Dmitri Chesnokov the deal is rumored to be a seventeen-year, $102 million contract).

The native of Tver, Russia, scored 41 goals and added 44 assists last season with New Jersey and Atlanta. Kovalchuk has scored at least 40 goals and 76 points in the past six regular seasons. Kovalchuk will join his friend Anton Vlochenkov who was signed earlier in July as a free agent by the Devils, but players are represented by Jay Grossman.

The New York Islanders and the Los Angeles were also interested in acquiring the services of the 27-year-old two-time 52-goal scorer, but it seems they were not willing to meet Kovalchuk’s strict demands. He made $7.5 million last season playing for the Atlanta Thrashers and the Devils. The Thrashers traded him Feb. 4, 2010 to the Devils with defenseman Anssi Salmela for winger Niclas Bergfors, defenseman Johnny Oduya, prospect Patrice Cormier, a first-rounder and a swap of second round choices. Kovalchuk had turned down offers of $70 million over seven years and $100 million over twelve years from Atlanta before they decided to trade him before the NHL trade deadline.

The Russian sniper will finally stay will the Devils

Is Kovalchuk the warrior the Devils were looking for?
However, for the Devils to fit Kovalchuk under the cap, they will likely have to move players as they have roughly $3.5 million in cap space after 19 players signed for next season. If the above projected contract numbers are right, this will result in a roughly $8.5 million cap hit for Kovalchuk, which will bring the Devils’ total payroll nearly $5 million over the salary cap.

GM Lou Lamoriello, who is well-known for being a clever general manager (heck he even traded a retired Vladimir Malakhov to the San Jose Sharks), will have to find ways to shed salary in order to fit Kovalchuk under the league cap. If we include Kovalchuk, the Devils have 12 signed forwards, meaning they need one more, because no team ever carries the bare minimum of 12 forwards.

The Devils would most likely waive rearguard Bryce Salvador at the end of training camp, whose salary accounts for $2.9 million. They will then need to manage to trade veterans such as Dainus Zubrus and Jamie Langenbunner before the season starts as NHL teams must be under the salary cap at the beginning of the regular season (they are allowed to go over the cap by 10% during the summer).

Lamoriello could also try to trade left winger/center Patrick Elias and his $5 million/year contract ($6 million cap hit), but with three years remaining to his hefty contract and his no-movement clause, it’s almost impossible to trade him. Trading these two veteran players and demoting Salvador would free up an additional $6.2 million.

Kovalchuk’s signing will also put definitively to rest the trade rumors about Toronto trading rearguard Tomas Kaberle to New Jersey.

Now one question remains: What happens to all-star Zach Parise when he becomes a restricted free agent at the end of next season and he commands a hefty contract like Kovalchuk?