NHL Should Drop Cap & Negotiate 1 Time

Discussion in 'Fugu's Business of Hockey Forum' started by EricBowser, Dec 12, 2004.

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  1. EricBowser

    EricBowser Registered User

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    The NHL has a great opportunity to really back the NHLPA into a corner by offering a counter-proposal based off the framework of last week's NHLPA ten-tab binder for a one-time offer on the frame work of their proposal.

    If they refuse to accept the six main points, then their immediate counter-proposal will be the prior offers of a hard salary cap, etc and announcement that impasse might be the only way to save the league since the players refuse to accept any sort of meaningful negotiation in the framework of a long-term solution, even after they tried to use a luxury tax system of the NHLPA's own choice.

    Here's the negotiated proposal, I'd like to see by the NHL.

    1. Accept the 24% rollback for all signed contracts

    2. Luxury Tax with teeth
    - NHLPA proposed too high of a threshold and a weak penalty for going over
    ----NHL should propose the following luxury tax
    --------- less than $31 million is non-taxed
    --------- $31,000,001 to $39,999,999 = $1 tax
    --------- $40,000,000 to $49,999,999 = $2 tax
    --------- $50,000,000 to $59,999,999 = $3 tax
    --------- $60,000,000 to $69,999,999 = $4 tax
    --------- $70,000,000 and beyond is == $5 tax

    3. Entry-Level Contracts
    - NHLPA proposed increasing the length to four years and capping the base salary, annual signing bonus, and tye A bonus
    ----- NHL should propose the following
    ----------- accept the length of the ELC as 4-years
    ----------- accept the maximum annual base salary as $850,000
    ----------- accept the maximum annual signing bonus as $212,500
    ----------- accept the maximum annual Type A performance bonus as $850,000
    ----------- cap the annual Type B performance bonus as $850,000
    ----------- under the NHLPA proposal players could get $1,912,500 plus unlimited Type B
    ----------- under the NHL proposal players could get $2,762,500

    4. Qualifying Offer
    - NHLPA proposal did little to save owners from keeping current salaries for players undeserving of a raise
    ------- NHL should propose the following QO system
    ----------- players making over $1,000,000 must receive 75% QO's
    ----------- players making less than $660,000 must receive 85% QO's
    ----------- players between $660,000 and $1,000,000 must receive 80% QO's

    5. Arbitration
    - NHLPA proposal limits a team to file once per year, no more than twice in 3-years, and player can only be taken once
    -------NHL should propose the following arbitration
    --------- Any player making over $1.3 million can be subjected to arbitration and no more than three times in his career
    --------- Player no longer selects the term, all awards will be based on 1-year contracts
    --------- Team can take two players to arbitration per year, no limitation for 3-year period like NHLPA
    --------- A 3-judge panel will choose between the team or player salary request
    --------- Team must offer QO of 90% to elect arbitration but can request a salary of their choosing

    6. Revenue-Sharing
    - NHLPA has proposed sharing $189 million but wants more
    ----- NHL has been very quiet to give any number or percentage associated with their revenue-sharing plans
    ----- NHL would be wise to offer more than the $189 million giving players hope that all teams can afford higher payroll
    ----- NHL should offer for all 30 teams to share 55% of the local revenues and all of the league generated revenue


    If players are willing to accept this counter-proposal, a one-time only offer will be used to lower UFA to 29 instead of 31. Otherwise, they will immediately provide the NHLPA with another proposal loaded with a stricter system and without the reduction in age for UFA.

    The league has a chance to really back the players into a corner by dropping the cap stance for one time only, if the NHLPA refuses, it will greatly enhance the NHL's ability to win the approval of the national labor boards in the US and Canadian provinces for an impasse and unilateral implementation.

    If the league is smart, they take advantage of Bob Goodenow's HUGE mistake because his offer admits the league has significant problems and by refusing to accept the league's counter-proposal, he sets himself and the union to lose any ground of bad faith negotiations by the NHL with the NLRB.
     
  2. likea

    likea Registered User

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    I agree 200% with everything you just stated

    a 2$ tax over 40 million should stop payrolls on most occasions
     
  3. X0ssbar

    X0ssbar Guest

    WOW!! that luxury tax certainly does have some bite :eek: and I like..

    ..only problem I see with the 1 time offer is if this baby does end up in an impass - from what I understand (correct me if I'm wrong) the league would have to unilateraly impose its last offer which could be the luxury tax.

    So with that in mind, if this league offered this proposal - even once - wouldn't they essentially be giving up their cost certainty quest if this goes to court?
     
  4. likea

    likea Registered User

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    from what I understand, yes, they would be BUT this proposal would do what the NHl wants it to do

    no owner would want to spend 1 dollar for eveything over 31 million plus 2 more dollars for everything over 40

    if Toronto would brings its payroll to 45 million they would pay 19 million dollars in tax.....

    it would keep payrolls within a certain percentage of revenue....and it provides luxery tax system which is what the NHLPA wants

    BUT the NHL may have to give some of the percentage rollback back to the NHLPA to make this happen
     
  5. thinkwild

    thinkwild Veni Vidi Toga

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    But this isnt dropping the cap stance. What you have proposed is a cap that only rich teams can exceed. And with the new controlling mechanisms in place, these teeth arent needed anymore.

    Is it the owners who want to lower the age of UFA? Why are fans that want a system that helps them keep their UFAs so anxious to lower the age of free agency?

    If they came up with a tax designed for revenue sharing rather than attempting to disgiuse one as a cap, and then came with all your other proposals, I would think Bettman and Goodenow could craft as brilliant an agreement as they did last time. Which from me, is meant as a compliment.

    All the other things you mentioned, I would think are the things that are easily negotiable and agreement could be reached on. I dont think they are all necessary, but neither are any show stoppers. That is what they should be negotiating. Except for your cost certainty part I highlighted.
     
  6. djhn579

    djhn579 Registered User

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    All very good ideas, and I think it would be very doable.

    The thing that I would have to disagree with is the part about making this offer improving the NHL's chances if they do declare impasse. I believe one of the reasons MLB lost in their attempt to declare an impasse was because they started negotiating a luxury tax. The judge looked at that and said an impasse could not exist on that issue. If the NHL does make this offer, they would not be able to retract it and impose a CBA with a cap.
     
  7. FLYLine27*

    FLYLine27* BUCH

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    I think $2 for over 40 mill is to steep.

    I would say .80 over 40 million, 1.00 over 45 mil, 1.5 over 50 mil and 2.00 over 55 mil.

    I might see the NHLPA agreeing to that but they would neve agree to $2 over 40mil.
     
  8. fan mao rong

    fan mao rong Registered User

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    Even a 200% tax at 40 million alone, to get to 50 million in payroll it will cost 70 million, and to get to 60 million in payroll would cost 100 million. So what you propose is a cap dressed up as a tax. I believe they should accept most of the ancillary stuff with some proposed adjustments in their favor, and propose a tax of 150 % at 30 million.
     
  9. Nomad

    Nomad Registered User

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    Why limit Type B bonuses on an entry level contract? If a player leads the league in a statistical category, he probably earned those bonuses. That's either a lack of understanding of what they are, or the flexing of muscles.

    Qualifying offers are founded on the idea that a player's worth doesn't diminish by the time he is an unrestricted free agent. If the team doesn't think he is worth what his last contract paid him, then they should not qualify him. Going less than 100% on a QO is a bad idea.

    Oh, and a take it or leave it proposition as you suggest will do nothing to promote the good faith argument in impasse hearings. It would actually hurt much more than help.
     
  10. hockeytown9321

    hockeytown9321 Registered User

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    Yep. Bettman has to decide by Tuesday if a legitimate tax can work for him. If he proposes a tax, he can't get a cap imposed at impasse.
     
  11. thinkwild

    thinkwild Veni Vidi Toga

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    I dont see how. You surely arent speaking as someone trying for a partnership. If you come with this attitude that you are dictators and you are going to impose your will and is up to the players to capitulate, this 1920's attitude will not lead to good results.

    I dont think the owners want to go the impasse road. They no longer have any need to either. They said they want to negotiate. Nows there chance to demonstrate their good faith. If they come with any hard cap or cost certainty rhetoric in an attempt to dicatate their power, they will get the fight they are after. If they want a solution that works, they will get that.

    It is time for the owners to show their good faith. And its Christmas. Are they Santa or Scrooge. Time for all the hardline rhetoric to end and a solution found.
     
  12. SENSible1*

    SENSible1* Guest

    Which is why his proposal will contain cost certainty.

    The ONLY time the NHL will come off their stance is to sign a deal once they've extracted maximum concessions.

    The ONLY time the NHLPA will come off their stance is to sign a deal once they've realized it is the only way to play in the NHL.
     
  13. Nomad

    Nomad Registered User

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    Well then they are going to get to try their hand at an impasse and fail. Cost certainty isn't going to fly the way the NHL defines it, and the PA's offer pretty much guaranteed that. The PA made an offer that a court would look at and say is reasonable. If the NHL goes for their cost certainty model, the court will throw out their case.
     
  14. Lexicon Devil

    Lexicon Devil Registered User

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    Some of the luxury tax numbers being thrown around are absolutely ridiculous.
     
  15. Brent Burns Beard

    Brent Burns Beard DontTouchMyDonskoi!

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    the NHLPA purposly kept the tax rates LOW to appease the NHL. its the NHL owners who dont want to share significant revenue, which a real luxury tax is desgined for.

    think about this. even owners dont trust each other enough to share revenue, why should the players trust them ?

    dr
     
  16. likea

    likea Registered User

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    where do you get your information??? because I am certain that is just not true

    the NHL owners wanted to keep the revenue sharing portion low, it states it in the NHLPA proposal....

    it does not state the NHL wants low luxery tax numbers....
     
  17. Pepper

    Pepper Registered User

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    That's simply untrue and you know it.
     
  18. I think it depends on the owner.
    Nashville's owner might like it.
    But I doubt Detroit's owner wants it.
     
  19. Pepper

    Pepper Registered User

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    Collectively NHL wants atleast stiff luxury taxes if they don't get hard cap. Sure, Ilitch and Dolan are probably the least enthuastic about it but it seems they fully support Bettman in this issue.
     
  20. thinkwild

    thinkwild Veni Vidi Toga

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    What would be leading you to that conclusion? SOmething they said? I would bet there is some interesting discussions going on in the owners boardrooms about now.
     
  21. djhn579

    djhn579 Registered User

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    I don't know where you get this idea. Here is a case history where it states that:

    "NRLA Section 8(d) precludes the NRLB from compelling concessions or otherwise sitting in judgement on the substance of negotiations..."

    http://www.fishmangroup.com/pub_art/pdf/bti.pdf

    From this article I get that the NLRB is only going to get involved if something can be considered an unfair labor practice, not in the specifics of the negotiations including whether or not to consider if an offer is reasonable. It is up to the parties involved to decide what is reasonable. I'm not a lawyer, but this seems pretty clear from this article...
     
  22. me2

    me2 Calling out the crap

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    Oh please. All player contracts are registered with the NHL. The NHL knows how much the payrolls are, just how hard could it be to calculate the luxury tax. A 10 year old with a calculator could do it.

    Hiding revenue streams won't do them any good if the tax is based on a payroll.
     
    Last edited: Dec 13, 2004
  23. Pepper

    Pepper Registered User

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    Well prove me wrong, so far there is absolutely zero evidence of any breaks in owners ranks.
     
  24. mudcrutch79

    mudcrutch79 Registered User

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    If you go and read the document on the NHLPA website, you'll see that the players have offered higher luxury taxes which would reduce revenue disparity further. They base their proposal on a tax which generates 65 million because that's what the owners want.
     
  25. Pepper

    Pepper Registered User

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    They have? You mean those taxes which start at what $65M and only affect couple of teams and even them quite little?

    But the claim that PA offered low luxury taxes because that's what owners want is nothing short of complete fairytale.
     
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