The First Offer…

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Courtesy: Sportslogos.net

The NHLPA will submit their counter-proposal to the NHL and team owners first thing on Tuesday morning to kick off two weeks of negotiations in Toronto. Commissioner Gary Bettman came forth Thursday and stated the owners and the NHL would be prepared to lock out the players if no agreement was made by September 15th:

“I re-confirmed something that the union has been told multiple times over the last nine to 12 months,” Bettman told reporters after a two-hour meeting. “Namely, that time is getting short and the owners are not prepared to operate under this collective bargaining agreement for another season, so we need to get to making a deal and doing it soon. And we believe there’s ample time for the parties to get together and make a deal and that’s what we’re going to be working towards.”

The NHL and Team Owners gave their proposal to the NHLPA on July 13th, and since then NHLPA Executive Director Eric Fehr and his staff requested over 76,000 pages of collective financial information from each team, and has been globe-trotting through North America, Europe and Russia talking to players and getting their take on what needs to be dealt with. The main issue is the NHL proposing a revenue-sharing cut from 57% to 46%. Which means that players will lose a cut of all NHL-related revenue  (Winter Classic, jerseys, food and beverage, etc… ).  The owners issue is that the players are receiving too high a percentage, which has gone up from 54% in 2005 after the last CBA was created after the lockout. The other problem with the revenue sharing is that to guarantee an even split, a percentage of players salaries is put into an escrow and, at the end of the season when the NHL revenues are determined, is distributed among players and owners. With ‘no-market’ teams, like the Phoenix Coyotes, which is owned and operated by the NHL until a new owner is found, sucking down the collective revenue they in turn gobble up a majority of the escrow that is based on said revenue. And, to ensure an even playing field the ‘high-end’ teams must distribute a certain amount of revenue to the ‘no-market’ teams in order for them to be financially comfortable enough to stay competitive. Once the NHL and NHLPA agree on a percentage split, the rest of the issues should fall into place. This is the first domino, and it’s a big one.

My brain hurts.

In esscence, the owners don’t want to give any more money to the players because they are already demanding too much in salary (even though the owners are the ones dishing out $100 million contracts like they’re candy). The owners of the ‘high-end’ teams don’t want to give more money to the ‘no-market’ teams if those teams continue to struggle to fill the seats and compete.

So, now that I’ve confused you and most likely gotten my facts wrong, the real question that is burning on the tongue of every hockey fan in the world (yes the whole wide world) is: Will there be a lockout come September 15th?

The NHL cannot afford another lockout. Gary Bettman especially cannot afford another lockout since he already has two under his belt. Both sides have been preparing for this for over a year which is why there were no games in Europe schedule to start the season.

There is optimism on both sides that something will happen. The NHL and NHLPA met in New York last week to discuss player safety and the appeals process for supplemental discipline, with the big issue being that the players want a “independent appellate process for supplemental discipline”. Under the current CBA, to appeal a suspension a player can can only appeal to Commissioner Gary Bettman. While this is a point of contention for the players, most of the other “non-core economic” issues have been agreed upon and that bodes  well for the negotiations this week. Winnipeg Jets defenseman Rob Hainsey who represented the NHLPA in New York had this to say:

“We thought it was a good session. Constructive. We reflected on the whole process. Discipline, ice conditions, training camp, travel.” (AP)

The fact the players are so interested and prepared for the NHL and team owners gives hope that something could happen before September 15th and that Bettman’s threat of a lockout was just a scare tactic to get the ball rolling:

“We knew that was an option. (We’re) focused on (presenting) our proposal on Tuesday,” Hainsey said. “We were well aware (of) Sept. 15.” (AP)

Of course, there is the other side to this.

Courtesy: www.sportspromedia.com

If the NHL goes into a lockout it shouldn’t be more than a few weeks. Unlike the 2005 lockout which was based on salary cap issues, all the information and negotiations this time around will be presented much sooner. There will be time to figure out the best scenario for both sides. However, if they can’t agree on revenue figures by the beginning of October, then it’s panic mode.

“We are looking forward to the proposal,” NHL Deputy Commissioner Bill Daly said. “(It) gives you a better sense of how close or how far apart we are. It gives us a benchmark of where we are on economic issues. What we proposed had a variety of different elements. (I) don’t think (the players’) elements are vastly different.” (AP)

Let’s hope so.  Because I seriously doubt Bettman could afford a hattrick.

 

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