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Leagues and Governing Bodies

Decade Of Negotiations Leads To NHL’s New CBA

The NHL’s lockout lasted 310 days, but years of developments led up to the completion of the new CBA. We’ve poured through our archives to provide the following chronological look at the labor issues that have faced the league since ’95. Note: The date corresponds to the issue date of THE DAILY:

1995: 1/11: The ’94-95 NHL lockout ends after 104 days, with 468 games lost. 1/13: NHL Commissioner Gary Bettman and NHLPA Exec Dir Bob Goodenow announce a new six-year labor agreement. 1/20: NHL’s ’95 season begins.

1997: 6/25: NHL approves expansion teams for Atlanta, Columbus, Minneapolis-St. Paul and Nashville. As part of the deal, NHL and NHLPA agree to a four-year extension of the CBA running until September 15, 2004.

Bettman Establishes $300M Fund
For Possible Work Stoppages
1998: 12/8: Bettman announces the creation of a $300M fund in the event of a possible work stoppage.

1999: 4/9: Bettman is quoted as saying, “The next CBA actually may see things roll back. ... If things continue, if they go to a high enough level and they are not sustainable, then the next CBA may have to be one that deals not just with limiting the growth but bringing it back to a level that’s sustainable.”

2002: 11/11: Bettman warns of a lockout should owners not get players to make major concessions at the bargaining table. 11/25: NHL BOG votes to allow Bettman to secure a CBA that has cost-certainty, essentially authorizing a lockout in ’04.

2003: 10/1: NHLPA proposal includes a luxury tax system, 5% salary rollback, revenue sharing and changes to entry-level system. NHL rejects the proposal. 10/14: Toronto GLOBE & MAIL reports an offer by the NHLPA for each player to take an immediate 5% pay cut, a concession worth US$50M, was rejected by management because owners are seeking a hard salary cap of $31M.

Levitt Submits Report Documenting
Financial State Of NHL
2004: 2/9: During his State of the League address, Bettman denies that the league’s latest offer contains a hard salary cap, saying it provides a link between revenues and player costs. Goodenow holds an impromptu press conference and says, “It sets the stage for a very contentious negotiation for as long as Gary wants a salary cap. We are not prepared to negotiate a cap system. We are in favor of a marketplace system.” 2/12: Former SEC Chair Arthur Levitt submits a financial report commissioned by the league that finds 19 teams had operating losses in ’02-03, while 11 made a profit, with an $18M average loss versus a $6.4M average gain. Levitt: “It's not a business that makes sense. I'm telling you the business model is severely flawed.” Goodenow: “The Levitt report is simply another league public relations initiative.”

7/21: NHL reports 50% of NHL personnel will be laid off September 20 if there is no CBA by September 16. 9/9: NHL rejects new NHLPA CBA proposal. The four-point proposal includes 5% rollback on all existing contracts, changes to the entry-level system and a luxury tax on payrolls exceeding a negotiated level. NHL Exec VP & CLO Bill Daly says in a statement, “We are extremely disappointed with what the Union presented to us today.”

9/15: CBA expires. Owners announce player lockout. 11/2: NHLPA execs meet with about 70 players in Toronto and reconfirm they will not accept hard cap and that no negotiations will be entertained until Bettman moves away from “salary cap-or-bust” stance. 11/12: Forbes releases report saying NHL owners have exaggerated losses by not including spin-off revenues. Forbes estimates ’02-03 losses at $123M, not Levitt’s $273M. 11/24: Players begin receiving lockout pay ($10,000 for November and December, and $5,000-10,000 for following months). 12/9: NHLPA meets with NHL for the first time in three months and offers new proposal. Among the components is an immediate 24% rollback of all salaries through terms of their existing contracts and a luxury tax. Bettman reacts to the proposal by saying, “This has been a serious attempt [by the union. But] I don’t believe in a luxury tax.” 12/14: NHL rejects NHLPA’s proposal and offers a counterproposal, which the union rejects. Goodenow’s reaction: “The League continues to resist real revenue-sharing among the clubs.”

Linden Proclaims Two Sides Still
Far From Agreement On New CBA
2005: 1/19: NHL and NHLPA reps meet without Bettman and Goodenow. After two days of meetings, NHLPA President Trevor Linden says, “We remain divided philosophically and have not scheduled further talks.” 1/26: NHL and NHLPA meet without Bettman and Goodenow, and N.Y. DAILY NEWS reports the two sides “are inching toward an agreement, the basis of which would be a two-tiered system that would include a soft cap” at about $38-40M, and a dollar-for-dollar luxury tax up to a hard cap of around $50M. 2/2: NHL and NHLPA meet without Bettman and Goodenow. NHLPA rejects NHL’s CBA proposal. NHLPA Senior Dir of Business Affairs & Licensing Ted Saskin says in a statement, “We told the League last week and again today that their multi-layered salary cap proposals were not the basis for an agreement.” 2/10: Sides meet with no progress. Daly: “I can tell you unequivocally and without a doubt that we are done.” 2/14: NHLPA makes last-minute offer with $52M salary cap. NHL wants $40M cap, and rejects the deal. 2/15: NHL makes offer with $42.5M salary cap with February 16, 11:00am ET acceptance deadline. NHL rejects $49M salary cap counter by NHLPA. NHLPA says it will make no more offers. 2/16: Bettman cancels ’04-05 season, saying, “This was something that the owners were telling me we had to do.” 2/17: While the union’s last offer contained a salary cap, Goodenow says, “Everything’s off the table. We begin anew.” 2/22: In a last-ditch effort to save the season, Wayne Gretzky and Mario Lemieux enter talks at the union’s request. But negotiations, with Goodenow and Bettman not present, fail despite reports of an imminent deal.

4/4: As the sides continue to meet, NHLPA rejects two proposals reportedly based either on a team salary cap of $37.5M or a link of salary and player costs to 54% of the league-wide revenue. NHLPA proposal contains a hybrid linkage concept that sets a salary cap of $50M and a floor of $30M. 4/20: NHL delays making a decision about using replacement players and emerges from a BOG meeting focused on completing a new CBA. 5/15: NEWSDAY reports that players are asking Linden and members of the executive committee to remain with Goodenow during talks, and “want to hold Goodenow accountable for his actions.” One source says, “I finally got the sense that the players — for the first time — are taking an independent interest in the process.” 5/20: OTTAWA SUN reports that Bettman has told Goodenow that the NHL wants a new deal by mid-June or the ’05-06 season is in jeopardy.

5/26: Reports have NHL and NHLPA likely agreeing on a floating cap based on league revenues; Goodenow states on the players’ Web site that the league will not move off its stance of a 54% link to revenues. 5/27: ESPN declines extension of its NHL broadcast rights. 6/2: N.Y. POST reports CBA will feature a salary-cap range, with a floor of about $24M and a ceiling of $36-38M. CBA would also include a 24% rollback on existing contracts and qualifying offers. 6/4: N.Y. POST reports that “while there has been widespread reporting of a coup within the Executive Committee leaving Goodenow the boss in name only, that view is not universally accepted by the players.” 6/8: Toronto GLOBE & MAIL reports that NHL and NHLPA agree “on a formula for a salary cap” that is “expected to form the foundation” of a six-year CBA with a team revenue-linked salary structure with a floor of $22-24M and a cap of $34-36M in the first year. The 24% pay cut offered by the players is believed to be part of the deal.

7/6: With a deal near, Kings C Sean Avery tells the L.A. TIMES, “[Goodenow] thought he was bigger than he was. Bob brainwashed players like me.” 7/13: Sides complete deal, which includes: team-by-team salary cap with a payroll range of $21-39M; provision that total expenditure on player costs cannot exceed 54% of defined hockey-related revenue; 24% salary rollback on existing contracts; cancellation of players’ contracts from ’04-05 season; maximum individual salary of 20% of a team’s cap ($7.4M); minimum salary of $450,000. 7/14: Flyers C Jeremy Roenick: “The deal is not great for the players. It is definitely an owner-friendly deal.” Maple Leafs D Ken Klee: “If the executive committee is bringing this to us to ratify, they think it is the best deal out there.”

Goodenow (r) and Bettman Reach
Reach Agreement On New CBA
7/21: NHLPA approves new CBA, with 464 votes for the proposal and 68 against. Goodenow: “The deal today from our perspective is better and actually fairer for both sides than what was being discussed in February. There wasn’t really a deal in February.” Goodenow, on accepting a salary cap: “We’ll really get to know this agreement in maybe three or four years. ... When that happens, history will be able to speak as to whether it’s a good deal for both sides or not.” Asked whether he would be leaving the NHLPA, Goodenow says, “I have no vision or idea of any change whatsoever. I’m frankly looking forward to the new environment and the changes that it’ll bring.” 7/22: NHL BOG unanimously approves new CBA. Lockout ends, new season to open October 5. Bettman: “When we look back in a year, or five to 10, this era, today, will be viewed as pivotal because it’s the time when we began to move forward. This will probably be a seminal moment.” 7/28: Goodenow resigns and is succeeded by Saskin. Goodenow: “With the conclusion of the negotiations and the ratification of the new agreement, the parties concur that this is an appropriate action for the future.”

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