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proposed changes to the CBA were the topic of my last post. Some of those didn’t come to pass (no changes to how signing bonuses are paid) and some took a different direction (salary variance now a determining factor in 35+ contracts).
Some particulars of the negotiations are laid out if you follow the link. I have some thoughts on some of the changes, and some are insights into issues we may not know about.
Free agency on November 1st - it will be interesting to see if this affects the timeframe on Yzerman re signing current RFA players
A player can opt of playing this season with no penalty or discipline - this is a big enough issue that a few players are probably going to be missing from the post season.
The playoff bonus pool is doubling from $16 million to $32 million - this makes sense. 8 additional teams plus an extra play in round, this increase will cover all the extras. The bonus pool will go up to $20 million next year.
This is a big one:
The salary cap will remain at $81.5 million until the HRR returns to $4.8 billion. Once it hits $4.8 billion, a new formula will be used and they’ll use HRR from two seasons ago plus a projected HRR. A re-calculation is way overdue. The volatility from February until April has GMs spinning each of the past few years. The cap ends up a few million lower than projected. Utilizing 2 past years plus a projection will limit that volatility. It will also help stave off unsustainable spikes in revenue and keep the cap from dropping significantly in a down year.
There is a section allowing for Olympic participation in the next 2 winter games. While this is an important point, the negotiations with the Olympic committees is yet to be completed. Participation is still pending certain guarantees.
Escrow caps is a bit confusing, but here is the layout:
2020-21: 20 per cent
2021-22: 14-18 per cent (TBD)
2022-23: 10 per cent
2023-24: 6 per cent
2024-25: 6 per cent
2025-26: 6 per cent
The reason it is confusing is that escrow is tied to the 50/50 revenue split and has been considered an untouchable. The details will roll out soon, but something will have to give. Either the owners are going to give on percentages, or any shortfall will be attached to the 26-27 season and beyond. For the players, this is good news. For 3 straight years they will see very low escrow rates. Next year is going to be a bit rough.
The players deferred 10 per cent of their 2020-21 salaries and signing bonuses and will be back in equal installments in 2023-24, 2024-25 and 2025-26.
No-trade and no-movement clause travel with the player, even if traded before it kicks in. In the short term, players are going to lose 30% of next year’s salary. The deferred portion will be repaid starting in the 2023-24 season. My hope is that agents will defer their fees as well. Also, the NHLPA needs to make sure that players have access to a tax expert so that they aren’t needlessly overpaying. This year’s players are going to feel a bit of the pinch, and need to recover in a couple different places.
If players coming over from Europe sign before December 15th, they don’t require waivers. I like this. The ridiculous set of rules that keeps organizations from bringing over European players. The deadline means that nothing can be pulled late in the season.
If a 35-plus player signs a multi-year deal and the salary is the same or increases each year, the cap number does not remain on the books if he retires before the end of the deal. - this keeps players and organizations honest. If the player is having to leave significant money on the table it reduces the risk of extra years that are “worthless”. It also allows the organization to recover that cap space if a player truly needs to step down.
I am encouraged that certain issues are getting addressed. I am hoping for an adjustment on how HRR is actually calculated. One long overdue policy would have to do with arena maintenance. That sounds a little crazy, yeah? However, the ugly reality is normally found in smaller markets. Some owners have separated the maintenance from the organization and hire outside companies to run things. However, some of those companies belong to, you guessed it, the same owners. The maintenance bills aren’t regulated, and what looks like a net loss in the organization turns into a massive gain in returns. It smacks a bit off old school 5 family dealings in New York, and is almost impossible to track down. Maintenance fees are added to operational costs which are subtracted from revenues.
Some teams, genuinely, have issues staying above the red. Each team is run independently with a bit of a lack in regulation. If all teams and players are subject to the same pool of money, there should be some level of regulation in any area that affects it. That’s my opinion at this point. I want owners to do well AN D I want players to do well. Hopefully it can be a reality.
Detroit Red Wings Blogger • 
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