NHL Set To Recoup More Than $120M In Player Escrow Money
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Kelly Says Economy Has
Highlighted Flaws In CBA |
The NHL is “poised to keep more than $120[M] in player escrow money at the end of this season,” according to sources cited by Tripp Mickle of SPORTSBUSINESS JOURNAL. The anticipated escrow return will be the “largest ever made to the NHL and could deliver more than $4[M] to each club’s bottom line at a time when the economy has softened and many have seen declines in single-game receipts.” NHLPA Exec Dir Paul Kelly: “This CBA system was reached through a yearlong owners’ lockout, and in these difficult economic times, the flaws of the system have been highlighted. The current escrow rate has certainly reminded the membership of the importance of making improvements to the CBA in future negotiations with the league.” Mickle notes with the league “projected to increase revenue [1-2%] this season, it should generate $2.64[B] in hockey-related revenue.” According to the CBA, players are entitled to 56.7% of that revenue, or $1.495B. But based on the NHLPA’s reported salaries for this season, the league is spending $1.559B in total player costs, and that figure does not include bonuses, league award payments, benefits or other costs that sources indicate will add more than $100M toward total player expenses. Players withheld 13.5% of their salaries in escrow in the first third of this season and are withholding 22.5% of their salaries now. Sources said that “‘significantly’ more than $120[M] in escrow money will be retained by the league.” A third of the money owed to the league “will subsidize a portion of revenue sharing,” while the rest will be “divided and shared by all 30 clubs in the league” (SPORTSBUSINESS JOURNAL, 3/2 issue).
UNION NAMES INTERIM OMBUDSMAN: The NHLPA has named former Canadian Auto Workers union President Buzz Hargrove its new interim ombudsman. Hargrove replaces Eric Lindros, who resigned last month. Hargrove, who had "originally agreed last September to sit on an eight-man" NHLPA advisory board, was officially voted in by the association's exec board and will "serve at least until this summer" (GLOBE & MAIL, 2/28).
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