NHL PA Presents League With Concessions

[Nickdfresh]

NHL players focus on slashing:
24 percent pay cut highlights proposal

By TIM GRAHAM
News Sports Reporter
12/10/2004

Associated Press
NHLPA Executive Director Bob Goodenow offered to reduce the value of every player's contract.

TORONTO - Jay McKee eagerly awaited the phone call. NHL Players Association Executive Director Bob Goodenow was to hold a teleconference with union representatives to fill them in on their proposal to end the lockout.
The details of the latest offer to the NHL had been closely guarded. McKee didn't even know what the proposal entailed. The Buffalo Sabres defenseman only heard rumors, that perhaps they would offer to roll back their salaries 8 percent or 10 percent instead of the 5 percent offered in their previous proposal of Sept. 9.

So McKee and several of his union brothers listened intently as Goodenow divulged what was offered and how the NHL reacted during Thursday's meeting at the league's Air Canada Centre offices.

"If I used the words all 35 guys said at the same time, they would be bleeped out in the newspaper," McKee said. "They were blown away."

The NHL apparently wasn't moved because there was no mention of a salary cap.

The NHLPA made a bold concession, one that shook the union rank and file, when it offered to roll back salaries 24 percent for the life of existing contracts.

NHL Commissioner Gary Bettman wasn't as blown away as the players. Bettman called the rollback a "starting point" and said the league will make a counterproposal. The next meeting is expected to take place Tuesday in Toronto.

The union claimed its rollback concession would save substantial sums, including $17.3 million for the Sabres.

"(Our faith in union leadership) was completely shaken initially," McKee said of player reactions to the rollback. He would stand to lose $504,000 himself. "It took awhile to set in, but we want to play this year.

"If there is no hockey this year and Bettman chooses this isn't a good enough deal, then every player can go to bed very comfortable that we did the best we could to save it."

The rollback gesture was one of several key elements of what many view as a last-ditch effort to save the 2004-05 season. Also proposed for the next six years:

Reduced maximums on entry-level contracts and qualifying offers.

Payroll tax with thresholds that begin at $45 million.

Revenue redistribution that transfers money from the wealthiest teams to the poorest.

"There won't be an offer beyond this," McKee said. "There won't even be an offer beyond this a year from now. I don't know what to say if the owners don't accept this. I know we won't go any further."

NHL owners have been adamant the new collective bargaining agreement will be based on "cost certainty," a phrase Bettman uses to describe a salary cap. The players are equally determined to avoid any type of salary cap.

"The magnitude of the rollback is what you need to get our economics back in line as a starting point," Bettman said. "To me, it was an acknowledgment to what we've been saying about our economics. In that respect, I think it was constructive.

"With respect to what we still need to make this league healthy going forward - what type of system - I have always had a firm set of beliefs in that regard, and while I intend to fully review and consider their proposal I do have an understanding as to what we need."

Bettman also reiterated his disapproval for a luxury tax.

The NHLPA's 235-page proposal, available at www.nhlpa.com, breaks down in detail how each club will be helped by their plan.

The Sabres have 25 players signed for 2004-05 at $36.9 million. Under the NHLPA's proposal the Sabres would shave $8.8 million off their payroll (Miroslav Satan would lose the most at $1.26 million) through the 24 percent rollback and receive an additional $8.4 million under the revenue redistribution plan for a positive impact of $17.2 million.

For 2005-06, based on players on the roster, the Sabres would save $6.7 million in qualifying offers and another $9.15 in salaries from the rollback.

"We came in with a stronger proposal than (the NHL) thought we would," said Colorado Avalanche defenseman Bob Boughner, a member of the NHLPA executive committee. "We all know it's getting down to crunch time. There's not a lot of time left. There's no time for games. That's why our proposal is so significant. It's a proposal we think should save the season."

Bettman again declined to provide a timetable for upcoming negotiations. He said he is still instructing teams to cancel games on a rolling 45-day period to help arenas book other events.

"We could have, if we wanted to, simply rejected (the NHLPA proposal), walked out and that would have been the end of it," Bettman said. "Certainly, because of the rollback element and the magnitude of paper put together, we wanted to make sure that we thoroughly looked at everything that was presented to us and give an appropriate response."

e-mail: tgraham@buffnews.com

[Nickdfresh]

Sabres set to take the hit



--------------------------------------------------------------------------------
Feel huge pay cut could save season

By TIM GRAHAM
News Sports Reporter
12/11/2004

Chris Taylor is behind the NHL Players Association's latest proposal. Based on the union's offer to roll back salaries, Taylor will lose the least of any player under contract for next season.
Of course, the Buffalo Sabres center makes the least, too.

The union Thursday made a stunning concession to the owners, offering to slash salaries by 24 percent. The NHL, however, didn't blink and indicated it would make a counterproposal at Tuesday's meeting in Toronto.

The players were astonished to learn the NHLPA had offered such a drastic reduction in pay, but Taylor and his brethren eventually came to grips with the plan.

His $350,000 salary is the lowest of all 592 NHL players under contract for 2004-05. Nobody else makes less than $400,000. With the rollback he would forfeit $84,000.

"Doesn't mean there's a lot left, does it?" Taylor said Friday night while driving to Blue Cross Arena to skate for the Rochester Americans against the Milwaukee Admirals.

"I have so much fun playing hockey. If I make $260,000 playing in the NHL, I'll play just as hard as if I'm making $350,000."

The Sabres' highest-paid player, Miroslav Satan, would lose more money ($1.26 million) than 13 teammates were supposed to make before the proposed rollbacks.

"Whether you're making $10 million or $500,000, 24 percent is 24 percent," said Sabres enforcer Andrew Peters, whose salary would shrink from $400,000 to $304,000. "I don't think that's a proposal the NHL can turn a deaf ear to."

While the rollback was the most eye-catching element of the NHLPA's 235-page proposal, the part that almost certainly will force the owners to disregard it is the luxury tax. The NHL is insistent upon a salary cap because luxury taxes won't corral maverick owners and general managers from driving prices back up with their free-spending ways.

The union's offer calls for a 20 cent tax on every payroll dollar spent over $45 million, a 50 cent tax on every dollar spent over
$50 million and a 60 cent tax on every dollar spent over $60 million.

A dozen teams last season had payrolls higher than $45 million. Nine were above $50 million, and seven were above $60 million.

The Sabres' payroll was roughly $33 million, but it would have been higher for 2004-05. They were committed to spend $36.9 million, not counting unsigned defensemen Alexei Zhitnik and James Patrick.

Other elements of Thursday's proposal included revenue sharing, arbitration and reducing entry-level contracts and qualifying offers.

The NHLPA's plan would transfer money from the haves to the have-nots based on union calculations of reported revenues from last season.

The Sabres would receive $8.4 million, the third-highest sum behind the Nashville Predators ($10.3 million) and Phoenix Coyotes ($8.9 million). The Toronto Maple Leafs would dole out the most at $10.9 million, but the salary rollback would put the Leafs up $3.8 million.

Under the old collective bargaining agreement, the entry-level maximum annual salary was $1.3 million with a maximum signing bonus of $647,500. Thursday's proposal cut the maximum annual entry-level salary to $850,000 and the maximum signing bonus to $212,500.

Instead of automatic 10 percent qualifying offers for all restricted free agents, the NHLPA proposed 10 percent raises only for those making up to $660,000, 5 percent raises for those making between $660,000-$1 million and no raises for those making more than $1 million.

Owners also would be allowed to take players to salary arbitration, not only the other way around.

The Sabres front office has declined to speak publicly on the union's proposal, deferring to the NHL.

"We said we'd give the best proposal we could," Sabres union rep Jay McKee said. "We've laid it all out on the line.

"The owners are smart businessmen and this is an incredible offer. I just think a lot of people are going to believe this is a quite fair deal."

And if the NHL declines the union's offer as expected and broaches a salary cap Tuesday?

"Then we can all put our heads on the pillow and know we did the most we could and the season's over," said union Vice President Bob Boughner of the Colorado Avalanche. "We go no further. We don't negotiate a salary cap or cost certainty. "Buffalo, Calgary, all the small-market teams everyone was worried about in the process, all those teams are now given the tools and the hard money they need to be successful."

e-mail: tgraham@buffnews.com

NHLPA Executive Director Bob Goodenow offered to reduce the value of every player's contract.

[Lou]

Yeah this ain't gonna cut it for Gary Bettman. Look at his response. He's not really interested unless there's a cap.

Now I heard something ridiculous the other day, that to salvage this season they'd have a 25 game regular season, and a playoff format where all 30 teams make the playoffs. The top team in each conference would have a bye, and the other 28 teams would play a best of three playoff series, so it'd be 2 vs. 15, 3 vs. 14, 4 vs. 13, etc. That sounds like the stupidest thing ever.

[Nickdfresh]

Originally posted by Lou
Yeah this ain't gonna cut it for Gary Bettman. Look at his response. He's not really interested unless there's a cap.

Now I heard something ridiculous the other day, that to salvage this season they'd have a 25 game regular season, and a playoff format where all 30 teams make the playoffs. The top team in each conference would have a bye, and the other 28 teams would play a best of three playoff series, so it'd be 2 vs. 15, 3 vs. 14, 4 vs. 13, etc. That sounds like the stupidest thing ever.

Bettman has his game face on. A counter proposal at this point can only be a good thing.

Sounds like a European league season and playoff format. Silly, but better than nothing.

[Lou]

Yes but do realize I am rooting very hard for there not to be a season, and for the NHL to fold.

[Nickdfresh]

Originally posted by Lou
Yes but do realize I am rooting very hard for there not to be a season, and for the NHL to fold.

Why? Would you rather watch selfish, lazy, & half-assed basketball players assault fans in the stands?

[Lou]

Yeah that was pretty cool. Especially Jermaine O'Neal's punch which he landed to perfection.

I'm a pretty big NBA fan, yep. Hockey is not an option to me. I'd rather watch some crap on Spike TV.

[Va Beach VH Fan]

Don't get him started Nick....

The rumors that I'm reading by the Canadian press is that the NHL is not THAT impressed with the proposal, meaning one that could easily salvage the season....

But I guess we'll see what they counter-propose Tuesday....

[Bob_R]

Originally posted by Lou
Yes but do realize I am rooting very hard for there not to be a season, and for the NHL to fold.

For someone who hates hockey so much you sure do know what's going on.

You should actually calm down about it before you have a heart attack.

BTW, basketball sucks!!

[Lou]

Yeah I know what's going on.

You hockey fans are worried there's not going to be a season. Well I'm worried there IS going to be a season! Therefore I'm paying close attention.

[Va Beach VH Fan]

No, I'm not worried at all, to be honest....

If the NHL has the cojones to shut the season down to ensure that the next CBA has either a salary cap or a deal that ensures financial equality, I'm all for a long lockout....

Just as I would be all for a long lockout in baseball, but we all know that would never happen....

[Lou]

Speaking of lockouts, I heard the NBA is facing a lockout next year the other day. That's the first I heard of it. So next year, if the NBA is down, you guys can all razz me about it.

[ALinChainz]

The rumblings are that it might not be an easy negotiation.

The league wants to impose some kind of age limit. But I'm sure that will b e minor to the money issues.

[Lou]

I know this is gonna bring the thread off topic but I wish they could get an age limit imposed--either two years completed of college or 20 years old, whichever comes first. Other than a true rarity like LeBron James the high schoolers are bringing down the game. They're supposed to refine their skills in college, not get them refined in the NBA on the fans' time. The fans want a finished product, not a work in progress. Even fantastic players like Garnett, Kobe and Jermaine O'Neal didn't do a whole lot the first couple of years they were in the league. The NBA fan shouldn't have to deal with that.

[Va Beach VH Fan]

Never happen, because now you're pointing nearly EXCLUSIVELY at black kids, who've been skipping college now more than ever, most often with the excuse that they have to take care of their family ....

If that were even to get proposed, you'd get Jesse Jackson, the NAACP and Johnny Cochran suing the NBA.....

And for every Kobe or KG, you have 10 bums that are 12th man on the bench.....

[Lou]

Yup, I didn't think of that initially but somehow they'll turn it into discrimination. I guess black kids have a constitutional right not to go to college and enter the NBA, and the NBA has a constitutional obligation to accommodate them.

And even if you do have Kobe or KG, you still have a player who's a few years away and isn't going to give you anything. Like I said, someone whose skills are going to be refined on the NBA fan's time, and not in college. Essentially, the NBA team has to serve the function that colleges are supposed to serve. That's tough to do and try to win games at the same time.

[Va Beach VH Fan]

Well, they don't have a constitutional right to enter the NBA, because the NBA is a private enterprise, like all pro sports are....

However, the NBA does not currently have any restrictions on a minimum age nor a minimum number of years out of high school, like the NFL does with 3 years out....

If they don't want to go to college (and get an education, banish the thought), that would be their perogative.... But if they didn't, and if the rule were established, they'd be on their heiny for 3 years....

And that's where the lawsuits would come in, if they were to attempt to impose it....

[Lou]

Well you bring up the NFL. If the NFL has an age limit, how does the NBA imposing an age limit then hold water in a discrimination suit? Has anyone tried to play that card in a suit against the NFL?

[Bob_R]

Originally posted by Lou
Well you bring up the NFL. If the NFL has an age limit, how does the NBA imposing an age limit then hold water in a discrimination suit? Has anyone tried to play that card in a suit against the NFL?

I believe some sort of scenario of which you speak just occured. But, I'm not totally certain because I'm not a big college football fan. I think this guy named Willingham? :confused: tried to get into the NFL early.

[Bob_R]

NEW YORK -- The NHL will reportedly reject the latest proposal from the players' association that was meant to end the lockout and salvage the season.


Canadian sports network TSN reported Monday that NHL executive vice president Bill Daly told the 30 team owners the league will turn down the union's offer made last week that included a 24 percent rollback in salaries. TSN cited a memo from Daly to the owners.


The sides return to the bargaining table Tuesday in Toronto for the second time in six days after three months of silence. The NHL is expected to provide a counteroffer to the 236-page proposal made by the players.


"We believe the union's Dec. 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 sync on a going-forward basis," Daly said in the letter dated Sunday, TSN reported Monday. "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 redirected 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 poked 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 questioned 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 wrote. " ... 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."


Daly declined comment on the memo and wouldn't confirm its existence.


Lou Lamoriello, the New Jersey Devils general manager who is on the NHL's negotiating committee, had no comment other than to say "I'd rather just let things be and then wait until tomorrow."


Players and owners stayed apart from early September until last Thursday.


When the owners present their latest solution to end the 90-day old lockout, it could determine whether the NHL will become the first North American league to lose an entire season because of a labor dispute.


Ted Saskin, the NHLPA senior director, wouldn't respond to the TSN report.


"It would not assist the collective bargaining process to comment on excerpts from a leaked league document," Saskin said. "We will comment on the NHL's response to our proposal when it is finally delivered to us."


The NHL hasn't given the union an offer since July 21, when it presented six possible concepts to provide a framework for the league's first new collective bargaining agreement in a decade.


All six were formally rejected by the players on Aug. 17, and negotiations that followed over the next month failed to move the sides any closer to resolving philosophical differences.


Talks broke off Sept. 9 when owners turned down an offer, and the lockout was imposed a week later by commissioner Gary Bettman.


The league wants cost certainty, a system that will provide a direct link between revenues and player costs. The union says that is tantamount to a salary cap and unacceptable.


The union held that position in its offer made a week after it invited owners back to the table. The NHLPA's newest six-year proposal was built on six points, but none provided a connection between income and player salaries.


Even an immediate rollback of salaries for each year of every existing player contract might not entice Bettman and some hard-line owners to cut a deal without cost certainty.


"If they want to make general managers powerless to set a budget and decide what they want to do, and just have a budget set in New York that is supposed to apply to Toronto, Nashville etc., that's not going to fly with the players," Saskin said. "I know that's not a recipe for a solution."


The proposal also contained a luxury tax; a revenue sharing plan; a lower cap on entry-level contracts and bonuses; and an offer to allow teams to take players to arbitration.


If Tuesday's offer by owners features a salary cap, the season could be beyond salvaging.


Ottawa Senators owner Eugene Melnyk reportedly told Bettman that the salary rollback offered by players isn't enough to end the lockout.


"It's not a solution," Melnyk, who pulled the Senators out of bankruptcy, told The Ottawa Sun. "It's a one-shot deal that doesn't work."

[Va Beach VH Fan]

Where's Dandy Don Meredith when you need him ???

"Turn out the lights, the party's over"......

[ALinChainz]

Bettman and the owners aren't touching anything that doesn't say "salary cap".

You said it VA ... it's over.

[Nickdfresh]

Hockey talks go nowhere fast

Owners, players take turns rejecting each other's offer; season in jeopardy

By TIM GRAHAM
News Sports Reporter
12/15/2004

"I consider the season gone now. That's for sure." Jay McKee, Sabres union representative


TORONTO - Six days ago Jay McKee buoyantly strolled into his living room and proudly informed his wife there would be an NHL this season.
The Buffalo Sabres' union representative had just finished a conference call after the NHL Players' Association made a dramatic proposal to end the NHL lockout by slashing salaries 24 percent.

McKee wasn't merely confident; he was certain the NHL would accept the proposal and clear the way for a 2004-05 season.

"Not anymore," McKee said Tuesday night. "I consider the season gone now. That's for sure."

The NHL nixed the union's offer at Tuesday afternoon's meeting in the league's office in the Air Canada Centre.

The NHL made a counterproposal that was based on a salary cap. The NHLPA rejected that plan almost on the spot. No further meetings are scheduled.

"I walked into the living room (Tuesday) . . . and told Nicole, "There's going to be no hockey,' " McKee said. "It's an ugly, sad part of the sport."

NHL Commissioner Gary Bettman agreed with many points of the union's offer, especially the drastic salary rollbacks.

But the NHLPA didn't factor maverick owners and general managers into the plan. The only way the league can protect itself from footloose spenders is with a salary cap system - in addition to rollbacks.

"It's like the old-fashioned jack-in-the-box," Bettman said. "You put the head in, you put the lid down, you get things put away, you crank it twice and it pops back up. We can't live with a system like that."

Said McKee: "Gary's run the show for 10 years and because of his incompetence in what he's done, he's forcing the players to pay for his mistakes. . . . They want us to take an enormous hit for their overspending and their bad decision-making."

Bettman also insisted the NHLPA's luxury tax couldn't work and suggested it would lead to contraction. The NHLPA's luxury tax plan started with 20 cents on the dollar at $45 million. The tax soared to 50 cents at $50 million and 60 cents at $60 million.

A salary cap is Bettman's vision quest.

"Everybody in this room, including me, wants to be playing," Bettman said. "And the lure is, the temptation is to clutch at straws just so we can play. The owners want no part of a system that doesn't fix the problem, and there's only one way that we can be sure of that will fix the problem. The time for guesswork is over."

The NHL's proposal featured a salary range clubs must dedicate to their player payrolls. The figures were based on a 54 percent portion of league revenues divided among the 30 franchises. The league stated its offer was a $17 million improvement over their previous offer of 53.2 percent of the pie.

The salary range for the first year of the five-year proposal would allow teams to spend no less than $34.54 million and as much as $38.61 million.

The Sabres' payroll for the 2004-05 season would be $36.9 million, not counting unsigned free agents Alexei Zhitnik and James Patrick.

Starting in the second year of the proposal, the figures would increase to $35.58 million-$39.76 million, $36.65 million-$40.96 million, $37.74 million-$42.18 million and $38.88 million-$43.45 million in the fifth and final year.

The salary-range increases were based on league projections of 3 percent annual growth. The NHLPA claimed league revenues have been growing at a clip around 9 percent.

"Their projections, I would suggest to you, are wildly unreliable, using an assortment of mostly made-up numbers over a variety of time periods," NHLPA Executive Director Bob Goodenow said. "I can tell you these projections are completely useless and phony."

Also included in the NHL's proposal:

A graduated rollback scale where players making under $800,000 won't lose anything, with percentages increasing to as much as 35 percent for players making more than $5 million.

The adoption of the NHLPA's restrictions on entry-level contracts with the stipulation all bonuses be eliminated.

The elimination of arbitration.

The reduction of eligibility for unrestricted free agency to 30 years old.

All contracts still guaranteed.

"The system is fatally flawed, and we are not prepared to experiment with Band-Aids," Bettman said.

The players were disgusted, but the executive committee stood resolute at its news conference.

"I'm going to stand up for what I believe in: a market-based system," NHLPA Vice President Arturs Irbe said. "I come from a country (Latvia) where there was no market. There were no rights. You were nothing. Everything was gray. . . . I'm not going back there."

The last lockout wasn't settled until Jan. 12, 1995. That allowed enough time for a 48-game schedule.

e-mail: tgraham@buffnews.com

[aesop]

It's a sad day for Hockey...Ranks up there with the Passing of Badger Bob Johnson. We are all paying the price for the total incompetence, lack of basic business skills, and a complete lack of hockey knowledge of one Glen Sather...

As one adept hockey analyst wrote: "Glen Sather has hired the worst possible coaches, failed to institute anything resembling a system in today's system-oriented NHL, has alienated the NHL's most devoted fans, has treated those who earned their stripes as Rangers with nothing but disdain, has refused to accept any kind of responsibility for his bad moves, has drafted with the same ineptness that killed the Oilers for the last ten years of his reign there, and has sent the Rangers into a tailspin that it may take decades to escape from."

Not to mention WAAYYY overpay players like Jagr, Kovalev, Kasparitis, the list is endless. This article from the London Post sums it up the state of the HHL nicely (and includes more trashing of Sather):

Time to purge the NHL

[Lou]

Al Morganti was ripping Gary Bettman to shreds this morning on WIP (the sports talk station in Philadelphia). Morganti is a co-host on the morning show. Former NHL player Keith Jones is also on that show 2-3 times a week.

[DrMaddVibe]

Hey...Tampa keeps the Cup! Stanley is gonna have permanent tan lines.