s. 48 of the Competition Act

Discussion in 'Fugu's Business of Hockey Forum' started by mudcrutch79, Dec 2, 2004.

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  1. mudcrutch79

    mudcrutch79 Registered User

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    Question for any practicing lawyers with some familiarity with the Competition Act.

    Section 48 of the Competition Act makes it an offence to limit unreasonably the opportunity to negotiate with a team to play sports. The court is to consider the desireability of maintaining competitive balance among the teams if a contravention is alleged.

    In a post-decertification NHL, would it be unreasonable for the Canadian owners to agree amongst themselves to a salary cap? I'm thinking yes, others think no.
     
  2. SENSible1*

    SENSible1* Guest

    Who cares? The players would cost so little post-decertification that a cap would be unnecessary.
     
  3. hockeytown9321

    hockeytown9321 Registered User

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    Huh? If there's no union, there's no CBA. that means no minimum free agency age, or regulations of any kind, expcet that the owners still can't participate in collusion. Salaries will be higher than they are now.
     
  4. SENSible1*

    SENSible1* Guest

    If salaries would really be higher, why hasn't the union already disbanded?

    Are the players working fevourishly behind the scenes with the NHLPA executive to keep their wages as low as possible?

    If they could really make more money on their own, why haven't their agents adivsed them to push for decertification?

    Some people simply refuse to face the facts.
     
  5. hockeytown9321

    hockeytown9321 Registered User

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    Because a union is better for lower end players. It gives them minimums and guarantees. You don't think the superstar players would want to sell themselves on the open market when they're 25?

    No CBA = no draft, so the best prospects will be snatched up by the same few teams.
     
  6. Legolas

    Legolas Registered User

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    The key would be the definition of "unreasonable" and whether a salary cap would be considered "unreasonable". I highly doubt that there would be an investigation simply because Canadian teams operate under a salary cap. Now, if the salary cap was $1 then okay that would be a problem, but the Competition Act is not designed to stop billionaire owners from only paying their players millions of dollars and not more.

    The Act furthermore states that it would consider international restrictions and balance those against the provisions of the Act. In any event, I doubt a legal challenge through the Competition Act would be a preferrable avenue for the players, particularly in a decertified NHL. A union might consider using it if possible, but an individual player would likely not...
     
  7. jeffbear

    jeffbear Registered User

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    Not sure about Canada, but in the US a Collective Bargaining Agreement supercedes many provisions found in US Labor law.
     
  8. mudcrutch79

    mudcrutch79 Registered User

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    Are you a lawyer Legolas?
     
  9. SENSible1*

    SENSible1* Guest

    Ah, the altruism of the hockey superstar. It's all about the little guy for Jagr and Yashin.

    What a load of crap.

    The PA has done a marvelous job inflating players salaries, lower end and top end. That, and that alone, is what keeps the union together. To pretend otherwise is simply posturing.

    Flood the market with players and watch the marketplace bring them back to reality in a hurry.
     
  10. hockeytown9321

    hockeytown9321 Registered User

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    OK then.
     
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