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Posted on 12/13/2004 4:10:56 PM PST by Hat-Trick
The NHL intends to reject the players' association's latest proposal and counter with one "consistent with our mandate," NHL executive vice president Bill Daly wrote in a Dec. 12 memorandum to all 30 member clubs.
The memo was obtained by The Sports Network of Canada.
The league has been seeking a system of "cost containment" throughout talks with the union on a new collective bargaining agreement. The players' association regards any connection between revenues and salaries as a salary cap and a non-starter in negotiations. While the memo does not detail what the NHL's proposal will contain, Daly writes that "... under this scenario, the Union will likely (and quickly) break off negotiations."
The NHL will present its counter-proposal to the NHLPA at a 1 p.m. ET meeting Tuesday in Toronto.
The union proposed a 24-percent rollback in current salaries as the lynchpin of a 236-page proposal it presented to the league Thursday, the first negotiating session between the sides since Sept. 9. NHL commissioner Gary Bettman had called the offer "significant," but added that it is a "one-time element." Bettman said the league would digest the offer before formally responding to the union.
Daly's eight-page memo reiterates Bettman's initial statement and further elaborates with the league's position.
"In sum, we believe the Union's December 9 CBA proposal, while offering necessary and significant short-term financial relief, falls well short of providing the fundamental systemic changes that are required to ensure that overall League economics remain in synch on a going-forward basis," Daly writes.
"While the immediate 'rollback' of 24 percent offered by the Union would materially improve League economics for the 2004-05 season, there is virtually nothing in the Union's proposal that would prevent the dollars 'saved' from being re-directed right back into the player compensation system, such that the League's overall financial losses would approach current levels in only a matter of a couple of years."
Daly also pokes holes in the union's specific proposals, while alluding to the NHL's position, writing:
The 24-percent rollback amount was adequate but should be structured among players "in a more equitable manner";
The proposed entry-level system "can still easily be circumvented";
The changes to the qualifying offer system "certainly would not result in the savings of the magnitude projected by the Union";
The salary arbitration alterations "would have very limited impact (if any) on a Club's or League-wide economics ... We intend to reiterate our proposal to eliminate salary arbitration in our next offer to the Union";
The luxury tax system demonstrates the union's "continuing objective to avoid at all costs placing meaningful restraints on a Club's ability to spend excessively on player salaries";
The memo also questions the motives behind the union's offer.
"We believe the Union's offer was more about trying to unify the players and ensure player solidarity with what they would perceive as a very substantial proposal than it was about making a good faith effort to reach agreement with us ..." Daly writes. " ... The Union needed the 'rallying point' that it felt this offer would provide with the players to effectuate this strategy. Under this scenario, the Union will likely [and quickly] break off negotiations."
Looks like a hard-line stance from the owners, and don't expect the NHLPA to agree to a cap or "cost certainty" agreement, nor to give more than the 24% salary rollback they've already offered.
Some of the current day greats like Mario and Steve Yzerman have probably played their last NHL or professional game.
Freep mail or ping me if you want on or off the Hockey Ping List.
Most of those guys are making the same money in Europe and Russia (with no exhorbinant taxes)
Please put me on your ping list. Thanks!
First rule of holes seems to have finally dawned on the owners.
Unfortunately, Major League Baseball is about 5 years away from the same fate.
NBA - they are too busy shooting themselves in the foot.
NFL - learned its lesson the hard way, has somewhat of a partnership with the owners, and can survive since there is a cap in place and long-term, ever increasing revenue potential.
From a forum posting (who knows how accurate it is, thought the email address is in the Czech Republic): "The best top players in Czech (not NHLers, they have different contracts) have around 350.000 USD per season, very good players have around 200.000 USD per season. Average players salaries are around 50 - 100.000 USD per season."
Average NHL salaries are someplace around 1.3 million US.
I read on Sporting News on my PDA that the eventual solution is going to be a $30 or $40 million annual soft cap (if they go over, they pay a "tax" of .75-1.75/$).
The real negotiation is supposedly over the amount of that tax, and the starting point.
add me
I'm waiting for the demise of the nba myself.
BTW - How about a proposal by the NHLPA to dump "What's a puck?" Bettman.....
On the plus side, I still have the Wolves. They're currently 15-8 and playing well.
Bettman can "puck off." He went about marketing the game in a horrible way.
Hockey marketing has worked well in Columbus, even with a really weak team (expept Rick Nash). Good seats were $80+ per game plus the cost of a seat license. Along with $6.00 cup of beer and $20.00 parking, it is one expensive night. Not much room to increase revenue here!
That's ok...we're only missing the most boring part of the season, anyway. Now, if they could strike a deal right towards the end of the season, and resume play right near the start of the playoffs, that would be ideal. Then, we won't miss the best part of the season ... :)
You doubting me?
How dare you...I have the article on my computer at home....I will post it.
remember, those Europeans pay cash...and NHL salaried are taxed near 50% (plus union dues)
Weak, but exciting nonetheless. All the ingredients are here. Nash, Zherdev, Jody Shelley as the pugilist. Plus, Nationwide is by far the best arena in the league. And we've MADE money since franchise inception.
Isn't that where the OSU Buckeyes (CCHA) play home games?
BTW - Dan - do you have a college puck team that you cheer for (U of M, MSU, NMU, WMU, Lake State, Ferris State)? I'm in Omaha and have season tickets to UNO so we get to see alot of CCHA games. I believe U of M comes to town in February.
I'll just that I miss Ron Mason as coach(although he's a good AD). The program tumbled a bit after he left.
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