A few weeks ago, the National Hockey League presented its first Collective Bargaining Agreement (CBA) offer to the National Hockey League Players Association (NHLPA). The Players have not formally rejected the proposal from the NHL, but it is expected to do so tomorrow. NHL Commissioner Gary Bettman has warned the players last week that the League will lockout the players if they are unable to reach a CBA by the September 15 deadline. Should there be a lockout, it will be the 3rd lockout since 1994 and 2nd one since 2004, which cost the NHL the 2004-2005 season, so hopefully we will not go through that trouble again. So, here are the five main points from the League's proposal and what the counter offer will be from the players.
- Owners want to give players 46% of its Annual Revenue or 46-54 split compared to 57-43 split right now. Players will roll-back their salaries about 24%, which they did back in Summer of 2005 when they reached a CBA at that time.
- NHLPA likely will try to get rid of the Salary Cap and Introduce a Luxury Tax system where if a team spends more than a certain payroll number, it will have to spend "X" amount of money per $US dollar back to the league itself, which would not be good for owners of small market teams, but might agree to some form of a salary rollback.
- Owners want to get rid of salary arbitration process, where an independent/3rd party decides a player's salary for 1 season or sometimes 2. The Player must be a Restricted Free Agent. Normally it hurts the relationship between a player/his agent and the team.
- It will not rest popularly with the NHLPA, but in its offer it will not get rid of it. But if the NHL takes the luxury tax system, the Players could agree to end salary arbitrations.
- Owners want Entry-Level-Contracts to incoming drafted rookies and undrafted free agents to be 5 years as oppose to 3.
- NHLPA will look to keep it at 3 years or even lower it to 2 years in order to give the player a larger market.
- Owners want a player to play minimum of 10 years before reaching unrestricted free agency as oppose to 7 years now.
- NHLPA will look to keep it at 7.
- Owners want to limit long-term contracts to 5 years due to numerous front-loaded contracts that are 7-15 years in length and sometimes cause Salary Cap confusions. For example someone on a 10-year-contract worth $50 Million dollars can make $48 out $50 Million in the first 8 years and only make $2 Million in the final 2 years of the contract. However, the Salary Cap Hit would remain $5 Million since average salary counts.
- Players might want to limit a contract to 7-10 years, Owners might go as high as 7.
