The NHL submitted a 288 page CBA proposal to the NHLPA on Thursday. The NHLPA met internally on Friday going over the offer, and also holding a conference call with it’s members.
Yesterday, the NHL and NHLPA held informational sessions via a conference call to go over the NHL’s offer in more detail.
There are three informational sessions scheduled for today in New York. The meetings will be face-to-face for the most part, with some people participating via conference call.
Here are some highlights of the NHL’s latest offer:
- Ten-Year Agreement (through 2021/22 season); Parties have mutual opt-out right after 8 years.
- 50-50 Revenue Split between Clubs and Players with current HRR Accounting.
- $300 million in “Make-Whole” payments (outside the system) to compensate Players for the reduced value of Player contracts in the early years of the new CBA.
- No contractual “roll backs” of Player Salaries.
- Clubs can operate with an effective Upper Limit of $70.2 million in 2012/13; must come into compliance with $60 million Upper Limit for the start of the 2013/14 season.
- Each Club will be entitled to execute up to one “Compliance Buy-Out” prior to the 2013/14 season pursuant to which payments made to the Player will not be charged against the team’s Cap, but will be charged against the Players’ Share.
- Establishment of a Defined Benefit Pension Plan that will provide maximum permissible benefits to Players upon retirement. The Plan will be funded with contributions out of Players’ Share and $50 million of the “Make-Whole” payment amount of $300 million will be allocated and set aside to fund potential underfunding liabilities of the Plan at end of CBA.
- Rules for Entry Level System, Salary Arbitration and Group 3 Unrestricted Free Agency will remain unchanged.
- Maximum contract length of 6 years subject to a Club’s ability to re-sign its own Player for a term of up to 7 years (provided the Player played his last full season with the re-signing Club). In addition, year-to-year Salary variability will be limited (up or down) to no more than 10% of the value of the first year of a multi-year SPC.
- Money paid (above a defined threshold) to Players on NHL SPCs in another professional league (e.g., the AHL or a European league) will be charged against the NHL team’s Cap, but not against the Players’ Share.
- “Cap Advantage Recapture” formula applicable to existing long-term contracts (in excess of 6 years) for years in which Player is retired or fails/refuses to perform under his NHL SPC.
- Ability for Clubs to retain/allocate Salary and Cap Charges in the context of Player Trades within specified parameters.
- More robust League-wide Revenue Sharing Program (increased pool from approximately $150 million to $200 million) with creation of Industry Growth Fund to improve the long-term revenue generating potential of the League and low-grossing Clubs. Formation of active Revenue Sharing Oversight Committee on which NHLPA will participate.
- New Player Discipline procedures and protocol incorporating Player appeal rights to a neutral third-party arbitrator for both on-ice and off-ice discipline.
More points in the NHL’s offer can be found here.