If the arbitrator rules that the Sharks had no grounds to terminate his contract; would the Sharks would be on the hook for half his contract(since he was on waivers) and the Oilers would get first dibs since they have his rights until July 13th?
If the arbitrator rules SJ had no grounds to terminate the contract then SJ is on the hook for all backpay and all future obligations of the contract.
There's a little bit of grey area in the CBA whether the arbitrator can actually re-instate the contract. The CBA says the arbitrator cannot change the contractual status of a player. Would reinstating Kane's contract count as changing the status? Or does simply recognizing the contract termination was invalid automatically reinstate the contract?
Either way, what would certainly happen if Kane wins the grievance is the NHL and PA will have to negotiate some sort of one off agreement how to deal with the situation.
In a way it's better for SJ if Kane wins the grievance that the contract is reinstated. If Kane were to win and the contract wasn't reinstated, that would essentially mean SJ is on the hook for the remaining $24m with no option to buyout or trade the contract to reduce that obligation. You can't trade or buyout a contract that's been terminated.