CBA: NHLPA rejects league's latest proposal; Bettman, Goodenow to meet Thursday

Wednesday, February 02, 2005

The National Hockey League made its much anticipated proposal during a four-hour meeting in Newark, New Jersey Wednesday. The NHLPA basically said no thanks, but let's meet again on Thursday. That's what they'll do. And this time NHL commissioner Gary Bettman and NHLPA executive director Bob Goodenow will join the talks. 

There were few surprises in the league's latest proposal, the details of which had been widely leaked in media reports. It didn't come as much of a surprise to the NHLPA either, which described it as basically the same stuff it had heard at as concepts at meetings with the league late last week.

It still included caps on what teams can spend and a league-wide link between player costs and revenues that would ensure that players received no more than 55 percent of league revenues.

It also included the expected profit sharing portion where the league and players would split profits 50-50 with the players once the league exceeds a certain profit threshold. Wednesday's proposal didn't include a threshold number, but media reports suggested the profit sharing would begin once league-wide profits exceeded $100 million to $115 million.  

"The proposal features the establishment of a profit-sharing plan in which the Players and Clubs would share fairly in the health and profitability of the industry -- an undertaking unprecedented in the history of major professional sports in North America,"  the league said in a news release that accompanied the proposal.

The NHLPA saw things differently.

"The League today presented a written proposal with minor variations of concepts that were presented orally by the NHL last Thursday", NHLPA senior director Ted Saskin said in a statement released after the meeting. "We told the League last week and again today that their multi-layered salary cap proposals were not the basis for an agreement."

Saskin did keep the door open for more talks, suggesting the two sides meet again on Thursday and that each group bring its top guy.

"Given the status of negotiations, the NHLPA suggested that the parties meet again tomorrow with Bob Goodenow and Gary Bettman joining the meeting." said Saskin. 

Bettman accepted, setting the stage for Thursday's meeting.

Meanwhile, The Hockey News reported Wednesday evening that Goodenow plans to use Thursday's meeting to push the NHLPA's proposal from December 9 as the basis for an agreement.  That proposal included a 24 percent salary rollback and a luxury tax.

THN reported that Goodenow posted an audio message on the NHLPA's secure web site on Wednesday.

"I feel very strongly that we've done our share," Goodenow told the players in the message according to THN. "Frankly, we're still waiting for our partner to step up."

THN said Goodenow reiterated the PA's opposition to a salary cap based system.

Here are the highlights of the league's proposal that was made on Wednesday.

NHL Proposal
Item Comment
Term Would include the remainder of this season and six full seasons through 2010-2011. NHLPA would have the unilateral right to reopen after the fourth full season (2008-09).
League-wide Cap Players would be guaranteed a minimum of 53 percent of league revenues and a maximum of 55 percent. Fifteen percent of team payrolls will be escrowed each season to ensure compliance with the 55 percent maximum.
Team-by-Team Cap In the first year teams would be obligated to spend no less than $29.8 million on payroll ($32 million in total player compensation) and no more than $40 million on payroll ($42.2 million in total player compensation).  The payroll range would change each season to reflect changes in league revenues.
Payroll Tax The league would be willing to negotiate the inclusion of a payroll tax "in the context of a Floating Team Payroll Range."
Salary Arbitration Players and teams would have have identical rights to request arbitration. Both sides would have walk-away and deferral rights. Non-requesting party can elect term of one to three years. League could eliminate salary arbitration at any time during
Qualifying Offers 100 percent for players making less than $800,000. 75 percent for players making more than $800,000.
Player Contracts Contracts would be guaranteed under same terms as previous system. Maximum contract length would be three-years with current contracts grandfathered in. Minimum player salary would be $300,000.
Holdouts Players and teams are obligated to reach agreement on terms of a new contract by no later than fourteen days after the opening of training camp. If not, player is ineligible and unavailable to team  for balance of the season.
Free Agency Age for unrestricted free agency dropped to age 30 for the 2006-07 season.
Entry-Level System Four-year system with two-way contracts. $850,000 maximum compensation, including salary, bonuses for games played and signing bonus. Maximum 
Profit Sharing League and players would split profits 50-50 "over and above a League-wide profit threshold to be negotiated."
Joint Audit Controls Each year's accounting would be performed by an independent accounting firm jointly selected by the league and the PA. Teams would be fined $2 million and the loss of 1st round draft pick for the failing to disclose required financial information.  A team that fails to disclose required financial information a second time would be fined $5 million and three first round draft picks.
24 Percent Rollback The league would accept the NHLPA's proposed 24 percent rollback on all current contracts.
2005 Season The league would guarantee players 53 percent of league revenues during the lockout shortened season by sharing playoff revenues with players.

 

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