Bring Back Our Hockey.
NHL PRESENTS COLLECTIVE BARGAINING PROPOSAL;
UNPRECEDENTED PROFIT-SHARING ELEMENT INCLUDED
NEW YORK (Feb. 2, 2005) - The National Hockey League today formalized a new Collective Bargaining Agreement proposal and presented it to the NHL Players' Association in a continuing effort to create an economic partnership and to return the game to the ice.
The proposal features the establishment of a profit-sharing plan in which the Players and Clubs would share fairly in the health and profitability of the industry -- an undertaking unprecedented in the history of major professional sports in North America.
The proposal also includes a number of areas in which the League has compromised to address player concerns. These areas include: the maintenance of player contract "guarantees" and the salary arbitration system, the establishment of a jointly monitored accounting and audit function, and a Joint Owner-Player Council to ensure that the Players have a meaningful voice in all issues relating to the Game.
Highlights of the new proposal include:
1) A term of six (6) full seasons (through 2010-11), with a unilateral right granted in favor of the Union to reopen the Agreement after the fourth full season;
2 )A League-wide Player Compensation Range, which again increases the League's offer on maximum Player Compensation from 54% to 55% of League-wide Revenues and guarantees that Players will receive a minimum payment of 53% of League-wide Revenues;
3) A Floating Team Payroll Range, which would obligate each Club to pay its Players no less than $32 million and no more than $42 million in Player Compensation on an annualized basis. The Payroll Range would be adjusted every year to reflect changes in League-wide Revenues;
4) The maintenance of Player Contract "Guarantees" in their current form;
5) A profit-sharing plan pursuant to which the Players would share in League profitability over a negotiated level on a 50/50 basis;
6) The implementation of a jointly monitored accounting and audit function, with multi-million dollar fines -- and forfeited Draft choices -- the penalty for failure to disclose required financial information;
7) The establishment of a Joint Owner-Player Council to discuss various business and game-related issues;
8) Recognizing a shortened regular season with a full Playoff, a distribution of revenues generated from the 2005 Stanley Cup Playoffs to ensure that the Players receive the agreed-upon 53% of League Revenues;
9) A revised Entry Level System which preserves each Player's ability to negotiate performance bonuses and which incorporates an additional League-wide bonus structure for outstanding performance on a League-wide basis;
10) A revised Salary Arbitration System with expanded election rights for both Players and Clubs;
11) A proposed reduction in the age for Unrestricted Free Agency to age 30, with a possible further reduction to age 28 (tied to salary arbitration);
12) A 62% increase in the League's Minimum Salary to $300,000 per year; and
13) The use of a Payroll Tax on Clubs within the Floating Team Payroll Range at the Union's sole discretion.
UNPRECEDENTED PROFIT-SHARING ELEMENT INCLUDED
NEW YORK (Feb. 2, 2005) - The National Hockey League today formalized a new Collective Bargaining Agreement proposal and presented it to the NHL Players' Association in a continuing effort to create an economic partnership and to return the game to the ice.
The proposal features the establishment of a profit-sharing plan in which the Players and Clubs would share fairly in the health and profitability of the industry -- an undertaking unprecedented in the history of major professional sports in North America.
The proposal also includes a number of areas in which the League has compromised to address player concerns. These areas include: the maintenance of player contract "guarantees" and the salary arbitration system, the establishment of a jointly monitored accounting and audit function, and a Joint Owner-Player Council to ensure that the Players have a meaningful voice in all issues relating to the Game.
Highlights of the new proposal include:
1) A term of six (6) full seasons (through 2010-11), with a unilateral right granted in favor of the Union to reopen the Agreement after the fourth full season;
2 )A League-wide Player Compensation Range, which again increases the League's offer on maximum Player Compensation from 54% to 55% of League-wide Revenues and guarantees that Players will receive a minimum payment of 53% of League-wide Revenues;
3) A Floating Team Payroll Range, which would obligate each Club to pay its Players no less than $32 million and no more than $42 million in Player Compensation on an annualized basis. The Payroll Range would be adjusted every year to reflect changes in League-wide Revenues;
4) The maintenance of Player Contract "Guarantees" in their current form;
5) A profit-sharing plan pursuant to which the Players would share in League profitability over a negotiated level on a 50/50 basis;
6) The implementation of a jointly monitored accounting and audit function, with multi-million dollar fines -- and forfeited Draft choices -- the penalty for failure to disclose required financial information;
7) The establishment of a Joint Owner-Player Council to discuss various business and game-related issues;
8) Recognizing a shortened regular season with a full Playoff, a distribution of revenues generated from the 2005 Stanley Cup Playoffs to ensure that the Players receive the agreed-upon 53% of League Revenues;
9) A revised Entry Level System which preserves each Player's ability to negotiate performance bonuses and which incorporates an additional League-wide bonus structure for outstanding performance on a League-wide basis;
10) A revised Salary Arbitration System with expanded election rights for both Players and Clubs;
11) A proposed reduction in the age for Unrestricted Free Agency to age 30, with a possible further reduction to age 28 (tied to salary arbitration);
12) A 62% increase in the League's Minimum Salary to $300,000 per year; and
13) The use of a Payroll Tax on Clubs within the Floating Team Payroll Range at the Union's sole discretion.