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.
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.