Monday, 12 October 2015

Mike Richards - Contract Termination


    Today we will be taking a look into the contract fiasco that Mike Richards and the L.A. King's of the National Hockey League have gotten themselves into. For some brief context I will overview the basic facts of the case that have been released the public. As I am not privy to some of the information that would be vital to determining how this contract dispute will be settled (i.e Richard's Standard Players' Contract). Some of the information I will be presenting will therefore be somewhat speculative in nature; but from the analysis that I have already done I believe I have found how this case will be settled.

Context:

  • Mike Richards is an NHL player who is under contract through to the 2019 season (signed in 2007).
  • Richard's is owed 22 million dollars on the remaining 5 years of his contract. 
  • Richard's was charged in June of 2015 for possession of OxyContin
  • L.A. Kings terminated Richard's contract in August of 2015
    • Reason for termination is for "material breach"

In June of 2015, Mike Richard's was caught at a Canadian/American border in Emerson, Manitoba for possession of controlled substance OxyContin. It is illegal to have possession of oxycontin without prescription to this drug. A couple months after Mike Richard's arrest the L.A. King's make a statement that they have exercised their right to terminate his contract for material breach. (Material breach essentially is a breach of contract that states one party fails to perform their obligations under the contract). Now since the L.A. King's have never come out and stated that they are terminating his contract because of recent interaction with the law this part of the blog becomes a little more speculative. 

If the L.A. King's have decided to terminate the contract on the basis that Richard's has been charged for drug possession and is therefore in a material breach of the contract than they will have no grounds for termination because of the Collective bargaining agreement that is signed between the National Hockey Leagues' Players' Association (NHLPA) and the NHL. In the C.B.A. there is a drug policy that states that any player who arrested under drug related charges is to be placed in "Stage 1" of the drug program. If the player is subsequently convicted for use of a controlled substance than they are to be placed in "Stage 2." The stages are not all that important, what is important that the NHLPA and the NHL have already in contract, that if any player is to face legal action because of involvement with drug abuse than they are to first be placed in the predetermined drug program.

This program is in place to protect players from these exact instances. Where the player has some involvement with drugs and need assistance. The NHLPA and NHL step into to aid the player from team's being able to terminate their contracts. 


This whole fiasco of terminating contracts comes down to simply another contract. In the C.B.A. it clearly outlines team protocol of what to do should a drug related issue arise. The L.A. King's in my opinion do not have a right to terminate Mike Richard's contract and he should and most likely will have a successful grievance through the NHLPA.







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