An Offer Refused

Posted: October 19, 2012 by David Phillips in News
Tags: , , , , , , ,

Yesterday the NHL met with the players’ association to discussed the NHL’s most recent offer. Many fans got excited when they got word of a 50/50 split of Hockey Related Revenue. There was a buzz around the hockey world that the season would not be lost after all. However, it now looks like the NHL and NHLPA took a step back. The meeting on Thursday was pushed back from 1:00 to 2:30pm, which got many wondering if they had gotten their hopes up too soon. When the meeting ended, fans took a hard blow to the gut.

The reality is that things were not as good as they seemed on Tuesday. It’s not that easy; to walk in with a deal on the table and agree to terms right away. The players wouldn’t have accepted the deal because they wanted their contracts fully honored; the NHL’s offer didn’t give them that. The contracts would be paid off in the later years of the CBA. This is the main thing the players are hung up on. They don’t want to budge and rightfully so. They don’t want to lose one penny from contracts they have signed in good faith.

The NHLPA made three counters on Thursday. Fehr said two of the union’s proposals would have the players take a fixed amount of revenue, which would turn into an approximate 50/50 split over the term of the deal, provided league revenues continued to grow. The third approach would be a 50/50 split, as long as the league honored all existing contracts at full value. The NHL rejected all three offers because they didn’t agree with the way the union came to the 50/50 split. NHL Deputy Commissioner Bill Daly said, “It is not a 50/50 deal. It is most likely a 56 to 57 percent deal in Year One and never gets to 50 percent during the proposed five-year term of the agreement.” More words from Daly:

 The proposal contemplates paying the players approximately $650 million outside of the players’ share. In effect, the union is proposing to change the accounting rules to be able to say ‘50/50,’ when in reality it is not. The union told us that they had not yet ‘run the numbers.’ We did.

Commissioner Gary Bettman said that he was still hopeful the league can have a full season, but time is running out to make that happen. Both sides would need to reach an agreement by October 25th for that to happen. If you’re an optimist, that is good news. However, things like that have been said in the past, but nothing developed.

Both sides now need to agree on what is a 50/50 split of HRR. The good news is that the NHLPA will agree to the split, but just want the money they were promised. If that can be worked out, all will be good. Hopefully, it will done by October 25th and give us the full season we deserve.

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Comments
  1. Reblogged this on That's Caps Hockey and commented:

    In reality, 50/50 wasn’t very even.

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