Negotiations update

Sunday, June 19, 2005

The NHL and NHLPA resume talks in Toronto on Monday. Here's a look at the latest reports and speculation on where the negotiations stand on key issues.

 

Element	Status
Salary Cap System	The New York Post reports that as it stands now this will be a linkage based system with players getting 54 or 55 percent of league revenues. Part of player payroll will be put in escrow to ensure player costs do not exceed the 54 or 55 percent target.
Salary Cap Range	Although several several reports have put the salary floor at $22-24 million and the salary cap level somewhere in the $34-36 million range, the New York Post has thrown out a new set of numbers. This time it is a floor of $22.5 million and a cap of $39.5 million. Those figures include benefits and other costs. When those are subtracted, actual payroll would could be $18-19 million to $35-36 million.  The cap will be adjusted each year to coincide with the change in league revenues.
Luxury Tax	The Toronto Globe and Mail reported a luxury tax would kick in some where in the middle of the payroll floor and cap. That could put it in the $28 million to $31 million range. The tax is expected to be a dollar for dollar levy for every dollar spent over the threshold.
24 Percent Rollback	The latest word is that the 24 percent rollback, which was proposed by the players in their December 9 proposal, is still considered to be part of the deal.
Free Agency	The New York Post reported that free agency will remain at 31 this summer and drop, possibly to as low as 28, during the rest of the term of the CBA.
Qualifying Offers	The expectation is that the two sides will work off the players' December 9 proposal, which proposed these rules for qualifying offers: Players making less than $660,000 would get qualifying offers of 110 percent. Players making $660,000 to $1 million would get qualifying offers of 105 percent. Players making more than $1 million would get qualifying offers of 100 percent.
Salary Arbitration	Again, the expectation is that the NHLPA's December 9 proposal will provide the framework for this system. Both teams and players would have arbitration rights under certain circumstances.
Entry-Level System	Entry-level salaries are expected to be capped at around $850,000 and there is expected to be strict limits on the bonuses that players used to haul in big money under the previous system.
Revenue Sharing	Details are vague, but it's been reported that the players are relatively happy with the progress made on the revenue sharing issue.  It's still not clear what monies will make up the majority of the pool.
2004-05 Contracts	The New York Post reports that 2004-05 contracts will be wiped out as part of the agreement.
Buyouts	A couple of reports have said there will be a time frame this summer during which teams can buyout players and not have the cost (67 percent) charged against the teams salary cap. The catch is that teams will not be able to re-sign the the players whose contracts were bought out. There have been suggestions that teams will be limited to buying out just two players.
Olympic Participation	Most of the reports on this topic indicate that the two sides have agreed that NHL players will take part in the 2006 Winter Olympics in Turin as long as the NHL season starts on time.