NHL, NHLPA say progress made on key issues

 Friday, May 20, 2005

Thursday's 14-hour negotiation session between the NHL and NHLPA was followed up by an eight-hour session on Friday, and when the discussions concluded there was talk of progress of on key issues. Not agreement, but progress.

"We had two long days of meetings in which the parties discussed and made progress on some of the key issues pertaining to a new economic system," NHL chief legal officer Bill Daly said in a statement. "While we have not yet been able to reach agreement on those issues, we remain committed to continuing the process in earnest until a new Collective Bargaining Agreement can be achieved. The parties intend to stay in touch and we expect that new meetings will be scheduled for next week."

NHLPA senior director Ted Saskin had this to say in a statement: "We just completed four long days of meetings, two days in small groups and two days with our full negotiating committees. While we made progress in some areas, there remain many issues to be addressed. Since so many of the systemic and economic issues are inter-related, it is clear that much work remains to be done."

Friday's session capped off a week that saw the two sides meet for four consecutive days. Tuesday and Wednesday entailed small group discussions where the league and the PA discussed the financial and accounting practices of the NHL's 30 teams. Thursday and Friday were considered were large group bargaining sessions.

It's not clear on which issues progress was made Friday. There had been reports that the two sides were split on where to start.

Sportsnet in Canada reported the league preferred beginning with the framework for the cap system while the NHLPA wanted to discuss other issues important to players.

Former Vancouver Canucks general manager Brian Burke believes the issues the NHLPA wants to focus on are the same ones that were the focus of the disastrous February 19 meeting that came just days after commissioner Gary Bettman canceled the 2004-05 season.

"When this thing fell apart the three system issues that were contentious were entry-level system, qualifying offers and salary arbitration," Burke told CKNW radio late Thursday.  "I think the union's approach going into that meeting where everything went horribly wrong was 'You've got to meet on these three issues and then we'll talk system.' I think that is still their position."

As for the cap, the PA has proposed a team payroll minimum of $30 million and a maximum of $50 million with a luxury tax system included. Burke said both the floor and the ceiling are too high for the league.

"Those ranges are absurdly high given the damage that has been done to the industry," Burke said.  "I think a more appropriate range is $20 million to $32 million or $34 million."

But the team payroll ranges will depend on another issue on which  the two sides will have to agree -- projecting revenues for 2005-06. That will require some guesswork because no one is sure how much damage has been done by the league losing the 2004-05 season. It will also depend on how the two sides end up defining revenues. 

The league has put forward a figure of $1.7 billion, a drop of almost $310 million from the $2.085 billion in revenues from the 2003-04 season. The NHLPA has projected revenues of $1.9 billion according to some reports.