NHL proposes new CBA: highlights of the offer
Published On December 29, 2012 |
On Thursday, the NHL presented a new offer to the union to try and salvage what’s left of the season. Here are some of the highlights of the proposed deal:
- 10-year deal through the 2021-2022 season, plus parties have a mutual opt-out right after eight years.
- 50/50 revenue split between clubs and players.
- $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.
- Each club will be entitled to up to one “Compliance Buy-Out” prior to the 2013/14 season. Because of this, payments made to the player will not be charged against the team’s cap, but will be charged against the players’ share of revenue.
- Establishment of a defined benefit pension plan that will provide maximum permissible benefits to players once they retire. The plan will be funded with contributions out of players’ share of revenue 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.
- The maximum contract length will be six years except for a club’s ability to re-sign its own player for a term of up to seven 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 percent of the value of the first year of a multi-year contract, meaning clubs cannot front-load (or back-load) contracts.
- New player discipline procedures and protocol allowing for player appeal rights to a neutral third-party arbitrator for both on-ice and off-ice discipline.
- Completion of expert third-party review of the Substance Abuse and Behavioral Health Program and commitment to make recommended modifications and improvements, as appropriate.
- Players provided access to NHL.com platform for their individual player websites and social media.
- Exclusive negotiating rights window for European draftees extended to one period covering four years, instead of two periods covering two years each.
These are just a few of the highlights of the deal. You can see a more complete breakdown here.
