Proposed Solution: 1) Immediate Rollback: Following NHL proposal. < $800,000: no rollback $800k-$1.5m: 15% rollback $1.5m-$2m: 20% rollback $2m-$4m: 24% rollback $4m-$5m: 30% rollback >$5m: 35% rollback 2) Arbitration: Following TSN proposal. Two-way arbitration. Both teams and players can elect. High/low system - arbitrator picks one or the other offer. Absolute cut-off date for contracts = 1st day of season. 1st day of season establishes team payroll. 3) Entry system: Following NHL and TSN proposal. Cap base salary at $850k. Cap signing bonus at 25%. Cap bonuses at 100% of base salary (i.e. $1.7mil/yr). 4) Qualifying Offers: Following TSN proposal. Min. qualifying offer 75% of salary. 5) Free Agency: Following TSN proposal. Reduce unrestricted free agency to 30 yrs or 10 yrs of service (min 28 yrs). 6) Minimum Salary: Following NHL proposal. Raise to $300k. 7) Systemic Changes: a) Payroll tax: Install luxury tax on payroll. Target = $40m $40-$44m = 100% tax $44-$48m = 110% tax $48-$52m = 120% tax $52-$56m = 130% tax $56-$60m = 140% tax >$60m = 150% tax 10% added to tax for each successive year at Taxes redistributed to teams with payrolls between $30-40m. If payroll < $30m, do not get share of taxes. Payroll is established on cut-off date (1st day of season). b) Player salary tax: Install luxury tax on individual player salaries over $4m. <$4m: no tax $4-5m: 15% tax >$5m: 30% tax Taxes redistributed to teams with payrolls between $30-40m. If payroll < $30m, do not get share of taxes. Payroll is established on cut-off date (1st day of season). c) Bonus Cap. Absolute cap of bonuses at 15% of salary.