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Leagues and Governing Bodies

NHL Gives Union Notice That It Will Terminate Current CBA This Fall

NHLPA Exec Dir Donald Fehr yesterday sent a letter to all NHL players and agents informing them that the league had officially notified the union that it "wants to terminate or modify" the current CBA, and urged the players to attend future bargaining sessions for a new one. The CBA expires on Sept. 15 and pursuant to the current deal, the NHL or the NHLPA must notify the other side if it wants to change or terminate the agreement. "Had no notice been given by either party, under CBA Article 3.1(a) the CBA would have remained in place for another year," Fehr wrote in the letter, a copy of which was obtained by the SportsBusiness Journal. "As you know, this is not a surprise; we have anticipated this for some time." Fehr said no bargaining sessions have been set, but he urged players to stay informed and involved in the process. "Stay tuned and we will notify you as soon as we have information about when and where the negotiating sessions with the League will take place," Fehr wrote. "As I’ve said on many occasions, all Players are encouraged to attend as many of these bargaining sessions as possible. In fact, there is no better way to send a message to the League that Players are engaged in the process of bargaining for a fair new contract" (Liz Mullen, SportsBusiness Journal).

JUST A FORMALITY
: USA TODAY's Kevin Allen notes the notice "is a formality because it was well understood by the NHLPA that the league wanted to negotiate a new deal" (USA TODAY, 5/17). The GLOBE & MAIL's David Shoalts wrote the NHL "made it clear in recent months it wants to begin negotiations this summer." However, history "shows the serious bargaining will not start at least until the regular season is scheduled to begin in early October." Shoalts noted the NHL is still a "have and have-not league." While the "richest teams turn profits in excess" of $40M, the teams at the bottom "rack up losses in the same amount" (GLOBEANDMAIL.com, 5/16). In Philadelphia, Frank Seravalli wrote, "Clearly, the NHL’s owners would like to see more financial concessions from players." The league is set to surpass $3B in revenue "for the first time this season." Though that is "just a fraction of what the other three major sports leagues earn per season, it would be the league’s 7th straight season of record revenue." While it is "no surprise, the NHL fired the first shots on Wednesday of what appears to be a long and dangerous battle -- even before this playoff season has yet to conclude." Neither side "can afford to lose another season." Seravalli: "But there’s no telling when the last shot will be fired" (PHILLY.com, 5/16).

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