Breaking Sports

Thursday, July 07, 2005

nhl- Talking CBA

From mumerous sources and remember, nothing official until the NHL and the NHLPA says it is.

  • A hard salary cap, likely just under $40-million with a floor of approximately $22-million.
  • Will not include a luxury tax, however revenue sharing will very much play a role in trying to sustain all teams' long-term viability. And while the revenue sharing component soon to be released will be more comprehensive, the most simplistic way to describe it is the top 10 teams will feed a percentage of their gross hockey revenues into a pool designed to prop up the bottom 10 teams.
  • Clearly, it's undetermined as to what dollar amount the higher revenue clubs can expect to contribute, however sources say these teams believe it will hover between $5-7 million dollars annually.
  • As a further means of ensuring player salaries do not exceed 54 per cent of league revenue, an escrow account as reported by the Ottawa Sun will be introduced, funneling a percentage of annual player salaries into a fund that will help the NHL balance future discrepancies between payroll and revenue.
  • What has also come to light in the last few days is roster size will remain at 23. A number that some teams will independently cut by one or two players in an effort to save money, or free up dollars for luring or holding onto players determined to have more impact on specific teams.
  • NHL training camps will be shortened by as much as 10 days with camps this fall expected to be a full 20 days, while still revolving around a nine-game exhibition schedule.
  • The minimum age for unrestricted free agency will remain at 31 for the first year of the deal, then fall to 30 for the following season, and drop to 28 for the final four years of the agreement.
  • Entry-level contracts will be subjected to even greater restrictions, with the maximum yearly salary limited to $850,000. In additon, performance bonuses for all players will be arrived at using three sets of standardized formulas for forwards, defensemen and goaltenders; and salary arbitration is expected to change to a major-league baseball type system, where the team and player submits a financial figure and an arbitrator must choose one or the other.