With this bit of news, Colorado's future activity during the off-season becomes a bit foggier. It seems pretty clear that Svatos is probably being offered less than he thinks he deserves, but unless that number is under two million, I really don't think he has a case.
When you consider Svatos has never played more than 66 games in any of three pro seasons and only had 37 points in 62 games last season, (albeit, he did have 26 goals) it's likely that the arbitrator will rule in Colorado's favor.
However, if Svatos chooses to hold out until the hearing, we might not see him in Avs uniform after the 2008-2009 season. Because most contracts rewarded in arbitration are one-year deals, Svatos could be in a position next year where management has to decide whether or not he's worth a new contract. If they think he's going to cause the least bit of trouble, they'll look elsewhere for a potential 30-goal scorer.