Breaking Sports

Thursday, July 07, 2005

nhl- LA Times, Deal Reached

from Helene Elliott and the LA Times, The NHL and the players' association have agreed in principle on a new collective bargaining agreement that will feature a hard salary cap linked to 54% of league revenue, a 24% rollback of existing contracts and qualifying offers, and a provision that will limit the salary of any single player to 20% of the team cap figure in any year, sources familiar with the labor negotiations said Wednesday.
The agreement, which is expected to be announced next week, also includes an NBA-style escrow provision under which 15% of each player's paycheck will go into an escrow account until revenue is calculated after each season. If league-wide spending on salaries exceeds 54% of revenue, the difference between the salaries paid and the negotiated percentage will be paid to teams from the escrow account. If teams spend less than 54%, the escrow money will revert to players.
Negotiators are estimating revenues will be $1.8 billion next season, down from $2.1 billion in 2002-03. The salary cap will be $37 million and won't include medical and dental benefits and pension payments. The floor will be about $24 million....more...