Arbitrator Jack Sands ruled Friday that the NHL "needs
the players union's consent to implement a plan limiting the
amount of deferred salary that teams can carry," according
to Scott Newman of BLOOMBERG NEWS. Sands ruled that the
NHL's resolution to limit franchises to $5M in deferred
salaries "that aren't backed by investments violated" the
league's CBA. Sands added the league needs to receive
"written approval from the players union before passing a
restriction that could affect player salaries." The NHL
adopted the measure in '97 "because league officials worried
that some teams can't honor substantial deferred contracts."
NHL VP/Legal Affairs Bill Daly: "We're disappointed. This
is beneficial to everyone, so we're puzzled as to why the
union would challenge this" (DETROIT NEWS, 7/18).
COLLUSION COURSE? In N.Y., Larry Brooks reports that
"as far as unrestricted free agents are concerned, NHL
business as usual now consists of league executive personnel
acting as middlemen in the transfer of information between
teams bidding for the same players. What's more, we have
learned that NHL business as usual also consists of directly
competing teams themselves sharing information regarding
players up for bid as unrestricted free agents." While
Brooks writes, "This, it certainly appears, is a form of
collusion," he states that the NHL feels that "unless
specific language relating to collusion appears in the [CBA]
-- which, in the NHL's case, it does not -- sharing of
information as it relates to contracts and contract offers
is not a violation of labor law." The NHL and NHLPA
declined comment when contacted by Brooks (N.Y. POST, 7/19).
