11
Apr

Nhl Players Agreement

Dissatisfied with the current agreement, the NHL asked the NHLPA to approve one of the two proposals under The Score. The first proposal calls for increasing the amount of the trust to 25%, while players have deferred 20% of their salaries. Alternatively, the league asks players to defer 26% of their salaries next season, while the trust figure for the 2020-21 season remains at 20%. There are additional details, but in the end, these proposals would see that players range from taking over 72% of their salaries this season to an average of 63%. The CBA is six years in duration (by the 2010-11 season) with the NHLPA with the option to reopen the contract after year four (after the 2008-09 season). The NHLPA also has the option of extending the CBA for an additional year at the end of the deadline. Any player who is not comfortable returning to the game can unsubscribe from the restart without asking questions or without negative consequences. There is a three-day window for players to explain their preference which opens with the ratification of the new CBA. In other words, players have until next Monday – the first day of training camp – to make up their minds. What added to their anger was that several new contracts were structured to benefit from a lower trust fund in the later seasons of the new contract. For example, 56 percent of Alex Pietrangelos` seven-year deal, $61.6 million deal with Vegas are paid in the lowest years of CBA trust. For Torey Krug and St.

Louis (seven years, $45.5 million), that`s 52 percent. This could also divide players based on the age and/or duration of the contract. Pay now or pay later? First, Treuhand. There will be a trust cap that was almost a necessity in the near future, given the reversed economy in the world. The players decided to forgo their last cheque of the 2019-20 season to pay the trust, which was a decision that was largely made for them when the league lost about 40% of revenue after the March 12 season break. In the future, it will be limited to 20% for loyalty in 2020-21, and from there to a low of 6% in the last years of the CBA, which runs until the 2025-26 season. The league and the NHLPA were able to negotiate a new collective bargaining agreement without the need for a work stoppage. All this means that it is possible that players could make just over 50% of sales over the life of the new CBA, even if it wouldn`t be much – a few tenths of a percentage point, perhaps. The players want to play. Several governors at last week`s call with the NHL said Bettman wants to play and made it very clear that he wants to perform as early as the New Year. There is a 60-game schedule in place – division-only game (Canadian Division, too), in your own arenas, the back-to-back baseball style in the same locations, at least a week between the end of the season and the playoffs to allow makeup games to start the playoffs in mid-May and end on July 15.

This significantly changes the league`s financial outlook. Under the current framework, players will bring in $1.6 billion in wages at home. According to Hockey News, with league revenues floating around $1.8 billion to $2 billion with no fans involved, players would make up 80% of the league`s revenue. This is far from the typical disposition of a 50-50 split of league revenues. The final paycheck for the 2019-20 regular season players will not be played on the players, but will pay off their debts to the owners. That number came somewhere in about $140 million. Players will also defer 10 percent of the salary and signing bonus for the 2020-21 season. These will be repaid in three identical installments in 2023-24, 2024-25 and 2025-26. How much of the players will be in the league`s revenue? The 50-50 balance between the pages would be achieved by payments from players to owners during the lifetime of the CBA until the owners are fully done. In fact, one year is automatically added to the CBA`s lifespan — for 2026-27 — if after the 2024-25 season, players` trust debts exceed $125 million, but are less than $250 million.