A source says NHL commissioner Gary Bettman has ruled Neil Smith is not entitled to any meaningful compensation for his brief run as the New York Islanders general manager.
A source told The Globe and Mail that while Bettman's ruling is not final because not all parties have signed off on it, the commissioner did make his decision known to the parties involved. An NHL spokesman said that Bettman has not rendered a decision and has not held an official hearing and a settlement could still be reached.
Smith was fired by Islanders owner Charles Wang on July 18, 2006 after just six weeks on the job. Wang fired Smith after they could not agree on how to run the team and gave the job to Garth Snow, who was the Islanders' backup goaltender.
A source said Bettman let it be known he does not think Smith, who was the GM of the 1994 Stanley Cup champion New York Rangers, had an enforceable contract.
Smith had agreed to a contract with Wang before he was announced as the team's new GM but had not signed it. Wang refused to pay Smith what was owed after he fired him and both parties agreed to have Bettman act as the arbitrator.
Smith declined to comment, saying the matter was not resolved yet.
Wang did not allow Smith to hire the Islanders head coach, as the owner signed Ted Nolan himself. The owner also installed several other front-office personnel himself, such as former player Pat LaFontaine as an advisor. Wang decreed that Smith, Nolan and other front-office staff should report to him separately, with the team operating by committee.
LaFontaine quit when Smith was fired and this set off a chain of wacky events for Wang and the Islanders in the summer of 2006. It culminated in a 15-year contract awarded to goaltender Rick DiPietro at Wang's insistence.
