"For months, baseball officials have insisted that labor
negotiations and the expansion process were proceeding on
separate tracks," writes Marc Topkin in today's ST. PETERSBURG
TIMES.  "On Wednesday, they merged."  In presenting a new
proposal to the players, the owners included expansion plans
which call for two teams in the "near-term" and two more in the
future.  And Red Sox CEO John Harrington, who heads MLB's
expansion commitee, "indicated it would be problematic to get
owners to approve expansion unless the labor dispute is resolved
first."  Harrington:  "When I go to the ownership meeting, if we
don't have the labor agreement resolved, it could be like, 'Hey,
we don't even want to consider (expansion).'  I would anticipate
that."  The committee will hold a conference call today to
discuss a number of issues, including the price, payment terms
and league assignments of new teams, potential inter-league play
and potential franchise sites.  Harrington doubts a decision will
be made today on the fee, expected to be between $125-150M (ST.
PETERSBURG TIMES, 2/2).
     BUY TWO, GET ONE FREE:  The chances the Washington-metro
area would get a franchise "seemed to increase" with Harrington's
statement that owners could opt to award three franchises -- not
just two -- in the first round of expansion, according to Mark
Maske of the WASHINGTON POST.  Northern VA, represented by two
different groups, "appears to be running third" behind Tampa-St.
Pete and Phoenix.  The group headed by telecom exec William
Collins is the favorite in Northern VA.  He and Bart Fisher, the
leader of the other VA group, are scheduled to meet February 10.
Collins "says he has no interest" in merging (WASHINGTON POST,
2/2).
     THE SCHEDULE:  Harrington said that the committee plans to
seek two votes from the owners at "face-to-face meetings":  One
on expansion overall, the franchise fee and inter-league play,
and the other on the specific sites (Marc Topkin, ST. PETERSBURG
TIMES, 2/2).  While the owners had been expected to hold the
first vote by the end of February, Harrington now expects the
vote on the idea of expansion to come at the March 7-9 meetings
in Palm Beach, followed by a second round of interviews and a
decision on franchises by the end of March (Thom Loverro,
WASHINGTON TIMES, 2/2).

     MLB owners "abandoned their demand for a salary cap
Wednesday" by endorsing the luxury tax the players proposed
December 22, reports Tracy Ringolsby in this morning's ROCKY
MOUNTAIN NEWS.  However, the owners' luxury tax was "considerably
higher" than what the players had presented.  The owners said
their proposal was meant as a "framework" to spark negotiations.
Braves President Stan Kasten: "You can't negotiate religion.
When the players say, 'We won't have a salary cap,' that's
religion.  This is numbers.  You can negotiate numbers."  With
the players "splitting time between negotiations and lobbying for
repeal of baseball's antitrust exemption, the union was not
expected to make a counteroffer until Friday" (ROCKY MOUNTAIN
NEWS, 2/2).  While Dodger Player Rep Brett Butler called it a
"step forward," the union "privately balked at the plan."  Said
Royals Player Rep David Cone: "It's going to be a very long week"
(I.J. Rosenberg, ATLANTA CONSTITUTION, 2/2).  Another union
official: "If your looking through a haystack and found a couple
of quarters, I suppose you can say that's progress" (Jerome
Holtzman, CHICAGO TRIBUNE, 2/2).
     THE DETAILS:  The owners plan has a 4-year phase-in period.
In the fourth year,the tax rate on payrolls in excess of $35M
would be 75%.  On payrolls in excess of $42M, it would be 100%.
The owners also proposed a minimum team payroll of $25M.  The
players' December plan called for a 5% tax on the portion of club
payrolls that exceed the league average by 20-130%; 10% on
excesses of 130-160%; and 25% on anything in excess of 160%.  The
owners also proposed expanding the amateur draft, interleague
play, eliminating salary arbitration and creating restricted free
agency for players with between four and six years of service
(Tracy Ringolsby, ROCKY MOUNTAIN NEWS, 2/2).  The proposal
included higher minimum salaries for players with one-four years
of service, starting at $125,000 (Larry Whiteside, BOSTON GLOBE,
2/2).  The owners also included the joint "industry growth fund"
-- first proposed by the players (Mark Maske, WASHINGTON POST,
2/2).  In Philadelphia, Jayson Stark notes "the other notable
aspect" was that the owners addressed "every aspect of these
negotiations instead of simply the big player-cost issue"
(PHILADELPHIA INQUIRER, 2/2).
     WHAT'S THE ATMOSPHERE?  In New York, Tom Keegan notes the
talks "had a less bitter edge than past talks, but the two sides
didn't get any closer to an agreement" (N.Y. POST, 2/2).
Baltimore SUN's Peter Schmuck calls the overall mood of the union
after the first day of talks "surprisingly upbeat" (Baltimore
SUN, 2/2).  N.Y. TIMES headline: "Owners' Proposal Isn't New,
Players Say" (N.Y. TIMES, 2/2).
     WHY CLINTON INTERVENED?  Three labor lawyers, all
experienced with federal mediators, told SPORTS ILLUSTRATED that
President Clinton would not have acted unless Special Mediator
William Usery "could see a way to break the deadlock"
("Scorecard," SPORTS ILLUSTRATED, 2/6 issue).  Senate Majority
Leader Bob Dole says the players don't have guaranteed help on
Capitol Hill:  "They might strike out up here" ("CBS Evening
News," CBS, 2/1).
     NEWS & NOTES:  Many minor league baseball execs "stormed"
Capitol Hill yesterday to lobby for maintaining baseball's
antitrust exemption.  The minor league owners and execs stress
they are working in their own interests, "not of the majors" (Rod
Beaton, USA TODAY, 2/2)....Meanwhile, last night, the MLBPA
hosted a "lobbying schmooze fest" for members of Congress.  But
as Michael Farquhar notes in this morning's WASHINGTON POST, it
turned into "a field day for autograph-seeking fans" (WASHINGTON
POST, 2/2)....The NLRB announced yesterday that it would rule on
the players' complaint within two weeks (AP/TORONTO SUN, 2/2).

     The NHL and the Int'l Ice Hockey Federation (IIHF) concluded
two days of meetings Wednesday in Naples, FL.  NHL Commissioner
Gary Bettman and IIHF President Rene Fasel announced a
reaffirmation of the commitment to have NHL players participate
in the '98 Winter Olympics and plans for other international
competitions, including a possible World Cup tournament in '97 as
a prelude to Nagano.  In addition, Bettman and Fasel said that
they were proceeding on plans to develop a "Pan-European Super
League" to begin play no later than September '96 (NHL).  Fasel,
on '98:  "We mapped out a strategy and it's time to do some more
homework."  Part of that "homework" includes attracting NHL
players.  "Who controls international hockey is a major
unresolved collective bargaining issue" between the NHL and
NHLPA.  Int'l hockey is a major revenue source for the players'
pension fund, and both sides realize how much money would be
generated through marketing and licensing if the NHL's stars
played in the '98 Games.  While Fasel apologized to NHLPA Exec
Dir Bob Goodenow for not including the players in earlier talks,
he made it clear that it is Bettman's job to negotiate with the
NHLPA.  Fasel:  "I will talk to my different federations and Gary
has to deal with the players" (CANADIAN PRESS/VANCOUVER SUN,
2/2).
     PENSION BATTLE:  Paul Saunders, Senior VP of Buck
Consultants and an adviser to retired NHL players, testified that
former players are owed $42,160,251 by the league as of February
1, 1995.  The league's estimate is less, due to different
accounting methods.  The Ontario Court of Justice will decide
between the two amounts sometime in March.  The former players
won control of the money when an Ontario court ruled the NHL
Pension Society misappropriated surpluses in '82 and '85
(CP/Toronto GLOBE & MAIL, 2/2).

     "In the wake of a fourth straight blowout" by the NFC over
the AFC in the Super Bowl, the NFL "will soon begin internal
discussions on the feasibility of changing the playoff format,"
according to Leonard Shapiro in this morning's WASHINGTON POST.
One top NFL exec:  "It's clear that we can't continue with
sustained blowouts in our biggest game of the year."  The exec
stressed that any plan "almost certainly would not be presented
to club owners for a vote at their annual winter meeting next
month in Phoenix.  However, he indicated the subject would be
discussed by the league office and by team owners in Phoenix,
adding that 'whether it happens in the next year is
problematic.'"  NFL sources said the "likely scenario" is for NFL
Commissioner Paul Tagliabue to have his staff report to the
Competition Committee, which would then make a recommendation to
the full ownership.  One system discussed would seed the 12
playoff teams (still six from each conference) from 1-12, with
No. 1 and No. 2 placed in separate brackets.  Any playoff format
change would require at least a 3/4 vote of the NFL's 30 owners,
and be "satisfactory" to the NFL's network TV partners
(WASHINGTON POST, 2/1).

     Although NFL Commissioner Paul Tagliabue indicated the NFL
could expand into Canada, maybe as soon as '97, the city of
Vancouver does not expect to be a home for the new team.  Warren
Buckley, President of BC Pavilion Corp., which runs BC Place, the
home of the CFL BC Lions, said there has "been little or no
discussion about expansion for a full-time NFL franchise here.
... Toronto is different.  They have ownership behind them
(Labatt)."  Buckley did say that there have been discussions
about hosting an exhibition game in the future (Bill Comrie,
Vancouver PROVINCE, 2/1).  Also in Vancouver, Archie MacDonald
writes, "If we subscribe to the notion that there is fire where
there is smoke, we can expect the [NFL] to be burning brightly in
Toronto before the turn of the century" (VANCOUVER SUN, 2/1).