Negotiations update

Thursday, June 09, 2005

Although there were some strong denials Thursday, it appears the NHL and NHLPA have agreed on a formula for a salary cap system and it is now down to hammering out the final numbers and the details on several other key issues.

"Now it's just a matter of trying to work out the final numbers,"  Dwayne Roloson, who is the NHLPA player rep for the Minnesota Wild, told the Minneapolis Star-Tribune. "Finding out the higher end and the lower end. ... I always felt the season would start on time. Now it seems inevitable. You look at the work that has been done over the last month, month and a half. It's been like a snowball effect. Now the momentum is there, for sure. Momentum to carry over that should get a deal done."

But that momentum won't bring a deal in the next few days or even in the next week, according to TSN's Bob McKenzie.

"My best indication is that we shouldn't be looking at the finishing line in terms of days, but more weeks," McKenzie said Thursday evening on the Canadian sports network. "Nothing is going to get done this week. Nothing is going to get done in the next seven days for sure. So now we are into the week of June 20th and it could even go a little longer than that to the last week of June."

But that's if everything goes fairly well. There are still a lot of issues to to resolved and there is concern that the negotiations are fragile enough that one issue could bring talks to a standstill.

"It ain't over 'till it's over," one league source told Newsday. "Many a labor negotiation has blown up over some small piece after the main piece is 'settled'."

Here's a look at where the two sides apparently stand on key issues.

 

Element	Status
Salary Cap System	It appears the two sides have basically reached an agreement on a cap formula, but exactly how it works is still is not clear. It does appears it is a linkage deal that will allow the league to keep player costs from going over 54 percent of overall league revenues.
Salary Cap Range	According to the Toronto Globe and Mail, the latest numbers have a salary floor at about $22-24 million and the salary cap level somewhere in the $34-36 million range. Numbers in that range have been consistently reported over the past few weeks.
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 $30 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	It is still being negotiated, but the age for unrestricted free agency is expected to drop from 31 to 30.
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 idea that 2004-05 contracts might slide into next year is apparently a non-starter with the league, but there is still the belief that the NHLPA would like to recoup at least some of what players lost during the lockout.
Buyouts	Under the previous system the a team could buyout a player's contract for the two-thirds the value. It's not sure where the two sides stand on the issue for the new CBA. But the cost of buyouts and whether they will cost against a team's salary cap are important issues for teams that will need to dump big contracts under the new system.
Other Issues	How teams with high payrolls will drop to the new maximum Olympic participation Drug testing New rules and equipment regulations