"The NHLPA's Olive Branch"

NHLPA statement

NHLPA REVIVES TALKS TO END OWNERS’ LOCKOUT WITH NEW SIX-POINT PROPOSAL FROM PLAYERS an effort to end the owners’ lockout that has reached 85 days and threatens the 2004-05 season, the National Hockey League Players’ Association (NHLPA) put forth a comprehensive proposal to the league today with major concessions to the owners, beginning with an immediate and unprecedented 24% rollback of all players’ salaries through the term of their existing contracts.The proposal more than quadruples the players’ last offer from Sept. 9, while providing the owners with a competitive business model for a new Collective Bargaining Agreement (CBA). Based on the NHLPA’s six-point plan, the proposed rollback triggers a windfall of short and long-term savings for the owners through a system of changes to the Entry Level System (ELS), reductions to qualifying offers, new salary arbitration rules for clubs, a payroll tax and a revenue redistribution plan.

“The players have dramatically lowered the overall marketplace and adjusted all of the main system elements with changes that will help well-managed clubs maintain their roster at a significantly reduced cost,” said NHLPA Executive Director Bob Goodenow.

“Once a rollback of this magnitude is recognized in the system, the owners’ cost-savings will be realized for years to come.”The six major elements of the NHLPA’s plan as presented to the owners include:24% Compensation RollbackAn overall market deflator that resets player compensation at a new, sharply reduced level by rolling back all player compensation by 24% through the life of existing contracts. The rollback in compensation over three years will be $528M. In addition to an immediate economic impact for owners and their teams, the deflator will have major ongoing effects on new contracts.

Future Salary Restraints (Entry Level System, Qualified Offers and Arbitration)A new set of system deflators that will reduce spending on the individual contracts executed in the new, rolled-back marketplace. These system deflators include substantial restraints in the ELS; reduced qualifying offers; the use of rolled-back and new contracts as the only comparables available in salary arbitration and in negotiations for new contracts; and the use of arbitration at the election of the club for two new purposes identified by the NHL as important.

Conservatively these system benefits to owners will pull $400M out of the ELS system over the next six years, reduce the aggregate qualifying offers due to Group II Players by $285M over three years and provide other benefits. Payroll TaxA 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. Revenue Redistribution PlanA revenue redistribution plan that will transfer money from the high-revenue clubs to the low-revenue clubs, and encourage low-revenue clubs to increase their own revenues.

The redistribution will inhibit spending on players by the clubs that have formerly spent the most. This plan offers three alternatives to the NHL with amounts ranging from $65M, to $124M and $190M, respectively. Joint Player-Club CommitteesJoint Player-Club committees designed to ensure real improvements in the game, its marketing and its revenues, along with other areas of mutual concern. As an initial step, the players propose to commit to play in the 2006 and 2010 Olympics. Ongoing Adjustments and UpdatesAdjustments and updates to a variety of other CBA provisions..

Today’s meeting in Toronto was attended by NHLPA executive committee members Trevor Linden, Bob Boughner, Vincent Damphousse, Arturs Irbe and Trent Klatt, and NHLPA officials Bob Goodenow, Ted Saskin, Ian Pulver, Mike Gartner and John McCambridge.“This proposal demonstrates the players’ sincere desire to get the game out of the boardroom and back on the ice,” said NHLPA President Trevor Linden. “While the concessions on our side are quite significant, we know that our effort represents a meaningful compromise to get a fair deal for both sides.”

The last collective bargaining agreement between the NHLPA and the NHL expired at midnight, September 15. NHLPA members have pledged to play hockey this year and next while negotiations continue to end the owners’ lockout.