26.13 Enforcement by the System Arbitrator.
(a) Failing a resolution through the joint conference established pursuant to
Section 26.12 above regarding any possible Circumvention, either the NHL or NHLPA
may commence any action before the System Arbitrator alleging that a Circumvention
has occurred. Such action must be filed within forty-eight (48) hours of the joint
conference's declaration that they have not reached a resolution regarding the alleged
Circumvention, or shall be deemed waived. An action under this Section 26.13 shall be
heard and decided under Article 48 within seven (7) days of the filing of the action, and a
decision shall be rendered within three (3) days thereafter. The parties may jointly agree
to extend any of the above deadlines.
(b) The System Arbitrator may find a Circumvention has occurred based on
direct or circumstantial evidence, including without limitation, evidence that an SPC or
any provision of an SPC cannot reasonably be explained in the absence of conduct
prohibited by this Article 26. The investigation and findings of the Investigator pursuant
to Section 26.10 shall be fully admissible in any proceeding before the System Arbitrator
under this Section 26.13.
(c) In the event that the System Arbitrator finds that a Circumvention has
been committed by a Player or Player Actor, the System Arbitrator may impose any or all
of the following penalties and/or remedies set forth below. In the event that the System
Arbitrator finds that a Circumvention has been committed by a Club or a Club Actor, the
Commissioner may impose any or all of the following penalties and/or remedies set forth
below:
(i) Impose a fine of up to $5 million in the case of a Circumvention by
a Club or Club Actor, but in no circumstances shall such fine be
less than $1 million against any Club or Club Actor if such party is
found to have violated Article 50 of this Agreement. If such a fine
is assessed against a Club (except in the case of a financial
reporting violation), that Club's Payroll Room shall also be
reduced by such amount for the following League Year, and if
such reduction of the Club's Payroll Room renders the Club out of
compliance with the Payroll Range (i.e., the Club does not have
sufficient Payroll Room to accommodate its Player commitments
comprising Club Salary) for such following League Year, then the
Club must take such steps as are necessary (e.g. Assignment, Buy-
Out, Waivers, etc.) and as are permitted by this Agreement to
ensure that the Club will be in compliance with Article 50 of this
Agreement upon commencement of the following League Year;
(ii) Impose a fine against a Player of up to the lesser of $1 million or
twenty-five (25%) percent of a Player's Paragraph 1 Salary in the
case of a Circumvention by a Player or Player Actor, but in no
circumstances shall such fine be below the lesser of $250,000 or
twenty-five (25%) percent of the Player's Paragraph 1 Salary.
Notwithstanding the $1 million limitation set forth above, any
additional amounts by which the Player has been unjustly enriched
due to the Circumvention shall be ordered to be disgorged;
(iii) Direct a Club to forfeit draft picks (the number, placement, and
League Year of which shall be determined in the Commissioner's
sole discretion);
(iv) Declare a forfeiture of any NHL Game(s) determined to have been
affected by a Circumvention;
(v) Direct a Club to disclose and report to the Independent
Accountants all information required by this Agreement, including,
without limitation, by the provisions of Article 50;
(vi) Void any SPC, or any extension of an SPC, between any Player
and any Club when both the Player or Player Actor and the Club or
Club Actor are found to have committed such a violation with
respect to such SPC or extension; and
(vii) Suspend any Club employee, Player, or Certified Agent involved
in such a violation for a period of time determined in the sole
discretion of the Commissioner, the System Arbitrator, or the
NHLPA, respectively.
