IHL owners and the Professional Hockey Players Association
announced yesterday the signing and ratification of a new six-
year CBA that runs through the 2001-2002 season. Among the
"highlights," as noted in the league's release, is a "'hardened'
taxation point" that decreases from $1.4M per team in '96-97 to
$1.3M in '97-98 and $1.2M from '98-99 through 2000-2001. The
final year of the deal will have no taxation point. In Years 4
and 5, the taxation point can be adjusted upwards to $1.35M and
$1.5M respectively, depending on a formula based on overall
league attendance. The tax rates are 50% for anything from 0-25%
over the taxation point, 100% for 25-50% over, and 200% for 50-
100% over. The tax revenue will be split three ways: one-third
to the players' pension; one-third to player benefits (401k,
mortgage protection, playoff shares) and needy teams, and the
final third to the league office. Other details: Players and
owners will work together to promote team sales and other
marketing opportunities. Also included was a commitment to have
all teams sell half their tickets for $10 or less (IHL). PHPA
Exec Dir Larry Landon, on the cap system: "Overall, we are
confident that this will allow player salaries to parallel the
League's economic situation while maintaining League stability"
(PHPA).
REAX: Cleveland Lumberjacks President/GM Larry Gordon:
"Armed with long-term cost stability, owners can pump up
marketing efforts for their growing league. In addition, the
league can consider further expansion into markets like Toronto,
Sacramento, New Orleans and New York." Helping the PHPA during
negotiations was Charles Bennett, who helped the NBPA and NFLPA
during negotiations on those leagues' salary caps (David Adams,
Akron BEACON JOURNAL, 8/15).
