As I mentioned in a previous post on my blog, a friend of mine told me that he had reliable sources informing him that there would be hockey in the NHL on January 15 as the players were ready to sit and talk seriously about signing a new bargaining agreement in order to save the 2004-05 season (or at least the 2005 season).
Well, Goodenow and Bettman finally met and this time it was the NHLPA that brought the biggest arguments so far in order to reach a new deal. Here are some of the aspects of this new proposal:
- 24% cut in player salaries effective immediately when the season starts. This will mean a $528 million rollback in the next 3 years.
- Future Salary Restraints (Entry Level System, Qualified Offers and Arbitration), meaning that the salary cap for rookies entering the NHL would be lowered to something around 800 000$ per season. The bonuses that these players can earn would also be brought down, resulting in a rollback of about 55% in salaries for "first contract" players.
- A payroll tax with thresholds that begin at $45M, tax rates between 20% and 60% for first time taxpayers and higher rates for repeat taxpayers. If a club triggers the tax, its payments will be pooled for distribution by the NHL and NHLPA.
- A revenue distribution plan in order to help poorer teams with options ranging from $65 million to $190 million.
- Comittees formed in order to help make the game more interesting, better marketing and the permission from the NHL to let the players participate in the Olympic Games in 2006 and 2010.
For those of you interesed in the technical side of the new proposition made by the NHLPA, you can actually find it here. Surprisingly, it is a veryyyyyy heavy document with 235 pages! Good thing someone was kind enough to make a draft of the important points in the proposition.
Personally, I think this is good. The players are not 100% happy with it but most of them so far are acknowledging the fact that this is about as far as they have to go in order to save the season. The only problem is that in this proposition made by the NHLPA, nothing has been said about a system to keep the players from making or asking for as much money when the become free agents. Sure the teams will save a lot of money, but it won't stop stronger teams from getting even better. For example, take the Detroit Red Wings...They are already one of the strongest teams in the league. Won't they be happy to be able to save 24% in salaries on the signed players that they already have in their roster??? Say they currently have $50 million in salaries to pay, by saving 24%, they will save $12 million. If you were the Detroit GM, what would you do? Go after some free agents and offer them something like 6 million per year and there you go...2 extra players on your team to make it even stronger...It's a wheel that keeps turning and somehow, I don't think that they will have resolved this problem by taking salaries down 24%...Something has to be done with the free agents and the amount of money they are making.
But otherwise, it's a very interesting offer from the players' side. Let's hope that they can reach an agreement soon and start a new season somewhere in January... I said January 15 there was going to be hockey in the NHL...with the looks of this last offer, I wouldn't be surprised if that actually happened.
I miss my Coyotes and even more so now that they had signed a bunch of free agents and had built a pretty decent team for the upcoming season.
Come on boys...lace your skates and get ready to play!!!!!