The NHL "wants to limit the amount of deferred salary
teams can carry" because it is "concerned about the finances
of some franchises," according to documents obtained by
Bloom & Newman of BLOOMBERG NEWS. The league's Board of
Governors adopted a resolution in January '97 limiting teams
to $5M in deferred salaries "that aren't backed by an
investment." The plan has been "suspended because of
challenges by the players' union." The move by the NHL
"came because league officials worried that some franchises
can't honor some substantial deferred contracts." NHL
VP/Legal Affairs Bill Daly: "To the extent the players don't
get paid, it's a black mark for the whole league and its
reputation." The union, upset that the move wasn't done
through collective bargaining, filed a grievance that was
heard by arbitrator John Sands in Toronto. The union has
also filed an unfair labor practice complaint with the NLRB
that was heard in March. Neither complaint has been ruled
upon. The NHL claims the union "waived its right to
negotiate this provision because it didn't respond to
letters and telephone calls." NHLPA Exec Dir Bob Goodenow
declined comment (BLOOMBERG NEWS, 7/10).
