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Labor Agents

NHLPA, citing cap, won’t pay legal fees for salary arbitration

The NHL Players’ Association told agents late last month that it would no longer foot the legal fees for salary arbitration cases for NHL players.

In the new world, under a salary cap, “We decided that it would be unfair to the membership as a whole to pay, in many cases, significant legal fees to outside counsel so as to benefit certain members to the detriment of others,” NHLPA staff counsel Roland Lee wrote to agents late last month.

NHLPA Executive Director Ted Saskin, in an e-mail, elaborated on the union’s stance.

“Under the old CBA, the economic system was such that any salaries increased through salary [arbitration] would generally result in higher salaries for other players,” Saskin wrote. “There was no fixed amount the players could earn.

“The current economic system is much different because players now receive a fixed percentage of Hockey Related Revenue — 54 percent — and any raise in salary to one player does not necessarily benefit other players.”

There was not a vote of player representatives on whether to pay the legal fees of salary arbitrations, which some agents said could reach as much as $30,000 per player. Saskin wrote, “This is an internal administrative decision made after many discussions with our members, player agents and NHLPA staff.”

Winston Justice, along with former teammate
Matt Leinart, left agent Leigh Steinberg.
Saskin said that whether to pay for salary arbitration is now a decision that players and agents will have to make.

STEINBERG LOSES 2: Getting fired is a part of being a sports agent, and in recent years, top NFL draft prospects such as Michael Vick and David Carr have fired their original agent even before they were drafted.

But few agents, if any, have lost two top-10 NFL draft prospects just weeks before the draft. Veteran agent Leigh Steinberg earlier this month was fired by former USC quarterback Matt Leinart and USC offensive lineman Winston Justice. Justice signed with Premier Sports owner and agent Gary Uberstine, who also represents USC coach Pete Carroll. Leinart was unsigned at press time for this column (as the five-day period in which a player can sign with a new agent had not expired), but sources said he is expected to sign with Tom Condon, who recently sold his football practice to Creative Artists Agency.

“While I received a five-day notice form, I have not had a discussion with Matt,” Steinberg said. “The relationship has always seemed upbeat and strong and Matt seems poised to be picked at the top of the draft, and so the process has been smooth and successful. That is all I can say.”

As for Justice, whose draft profile increased after an impressive showing at the USC Pro Day, Steinberg, who paid for Justice’s training, said, “It’s extremely ironic to be terminated for helping to assist a player to become the fastest-rising pick in the draft. His training has been superb, and we have helped quiet the character issues and we felt the relationship was solid.”

An Uberstine spokesman would not comment on that but issued a statement from Uberstine that said, “Winston is a great kid and we are excited to have him become a member of our Premier family.”

Contact Liz Mullen with labor and agent news at lmullen@sportsbusinessjournal.com.

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