Direct from the NHL, the CBA offered to the players union by the NHL.
FOR IMMEDIATE RELEASE / OCTOBER 17, 2012 NATIONAL HOCKEY LEAGUE'S OCTOBER 16 PROPOSAL FOR NEW COLLECTIVE BARGAINING AGREEMENT NEW YORK/TORONTO (October 17, 2012) -
Following is the full text of the NHL's offer for a new Collective Bargaining Agreement in order to preserve a full, 82-game season that the National Hockey League presented Tuesday to the NHL Players' Association (along with the accompanying commentary and descriptions also provided to the NHLPA).
While the original intention was not to release the details of the offer publicly, not surprisingly there have been widespread reports attempting to describe and characterize the terms of the offer that understandably are incomplete. As a result, we believe that full public disclosure at this stage is both necessary and appropriate.
NHL PROPOSAL TO SAVE 82-GAME SEASON
· Six-year Agreement with mutual option for a seventh year.
2. HRR Accounting:
· Current HRR Accounting subject to mutual clarification of existing interpretations and settlements.
3. Applicable Players' Share:
· For each of the six (6) years of the CBA (and any additional one-year option) the Players' Share shall be Fifty (50) percent of Actual HRR.
4. Payroll Range:
· Payroll Range will be computed using existing methodology. For the 2012/13 season, the Payroll Range will be computed assuming HRR will remain flat year-over-year (2011/12 to 2012/13) at $3.303 Billion (assuming Preliminary Benefits of $95 Million).
· 2012/13 Payroll Range........................ Lower Limit = $43.9 Million Midpoint = $51.9 Million Upper Limit = $59.9 Million
· Appropriate "Transition Rules" to allow Clubs to exceed Upper Limit for the 2012/13 season only (but in no event will Club's Averaged Club Salary be permitted to exceed the pre-CBA Upper Limit of $70.2 Million).
5. Cap Accounting: · Payroll Lower Limit must be satisfied without performance bonuses.
· All years of existing SPCs with terms in excess of five (5) years will be accounted for and charged against a team's Cap (at full AAV) regardless of whether or where the Player is playing. In the event any such contract is traded during its term, the related Cap charge will travel with the Player, but only for the year(s) in which the Player remains active and is being paid under his NHL SPC. If, at some subsequent point in time the Player retires or ceases to play and/or receive pay under his NHL SPC, the Cap charge will automatically revert (at full AAV) to the Club that initially entered into the contract for the balance of its term.
· Money paid to Players on NHL SPCs (one-ways and two-ways) in another professional league will not be counted against the Players' Share, but all dollars paid in excess of $105,000 will be counted against the NHL Club's Averaged Club Salary for the period during which such Player is being paid under his SPC while playing in another professional league.
· In the context of Player Trades, participating Clubs will be permitted to allocate Cap charges and related salary payment obligations between them, subject to specified parameters. Specifically, Clubs may agree to retain, for each of the remaining years of the Player's SPC, no more than the lesser of:
(i) $3 million of a particular SPC's Cap charge or
(ii) 50 percent of the SPC's AAV ("Retained Salary Transaction"). In any Retained Salary Transaction, salary obligations as between Clubs would be allocated on the same percentage basis as Cap charges are being allocated. So, for instance, if an assigning Club agrees to retain 30% of an SPC's Cap charge over the balance of its term, it will also retain an obligation to reimburse the acquiring Club 30% of the Player's contractual compensation in each of the remaining years of the contract. A Club may not have more than two (2) contracts as to which Cap charges have been allocated between Clubs in a Player Trade, and no more than $5 million in allocated Cap charges in the aggregate in any one season.
6. System Changes:
· Entry Level System commitment will be limited to two (2) years (covering two full seasons) for all Players who sign their first SPC between the ages of 18 and 24 (i.e., where the first year of the SPC only covers a partial season, SPC must be for three (3) years).
· Maintenance of existing Salary Arbitration System subject to:
(i) total mutuality of rights with regard to election as between Player and Club, and
(ii) eligibility for election moved to five years of professional experience (from the current four years).
· Group 3 UFA eligibility for Players who are 28 or who have eight (8) Accrued Seasons (continues to allow for early UFA eligibility -- age 26).
· Maximum contract length of five (5) years.
· Limit on year-to-year salary variability on multi-year SPCs