There was a groundswell of optimism yesterday as the owners tabled a 50%-50% of HRR-based offer yesterday in the latest round of “bargaining”. The NHL believes that to salvage an 82 game season, the first games will need to begin on November 2, which, in turn, necessitates that a deal be struck within the next nine to 10 days so the logistics of said late-starting season can be arranged.
To be sure, this is the first large move in this process thus far. The cynic in me wonders how much it was a reaction to what was a seemingly contrived uproar over a focus group (in poor taste use of the Boorgaard photo aside), but the realist also recognizes that most labour agreement do not end without both sides feeling somewhat screwed, and in reality, as much as they gain from a 50/50 split, I’m sure most of the owners do feel bent over by that.
Big question for me though: How do the players, in response to this deal, feel they are continuing to be bent over by the owners? Donald Fehr acknowledged that this offer did represent movement from the owners, yet more time was needed to digest the document before commenting on the extent to which it met what the players felt was equitable. As reported by Bob McKenzie at TSN, Fehr’s message to the players show he has, in fact, digested said offer, a lo and behold, it produced some excrement!
"Simply put, the owners' new proposal, while not quite as Draconian as their previous proposals, still represents enormous reductions in player salaries and individual contracting rights. As you will see, at the 5 per cent industry growth rate the owners predict, the salary reduction over six years exceeds $1.6 billion. What do the owners offer in return?"
"The proposal does represent movement from their last negotiating position, but still represents very large, immediate and continuing concessions by players to owners, in salary and benefits (the Players' Share) and in individual player contracting rules."
On some of the specific aspects of the NHL proposal:
"They want to "clarify" HRR definition and rules. It is not immediately clear what this means, but so far all of their ideas in this regard have had the effect of reducing HRR, and thereby lowering salaries."
"The Players' Share is reduced to 50 per cent from 57 per cent immediately -- this season. This is a reduction in the share of 12.3 per cent. On last year's revenue numbers, this would mean that players' salaries would be cut by about $231 million."
"The proposal includes a "Make Whole" provision, to compensate players for the anticipated reduction in absolute dollars from last year (2011-12), to this year and next year. However, it would work like this. The Players Share in subsequent years would be reduced so that this "Make Whole" payment would be made. It is players paying players, not owners paying players. That is, players are "made whole" for reduced salaries in one year by reducing their salaries in later years."
"Finally, they also proposed that the players could appeal supplemental or commissioner discipline to a neutral arbitration, on a "clearly erroneous" standard, which, as a practical manner, makes it very unlikely that any decision would be overturned."
The final two paragraphs of the letter sums up where Fehr believes the process is at and reinforces the players' position on all issues:
"We do not yet know whether this proposal is a serious attempt to negotiate an agreement, or just another step down the road. The next several days will be, in large part, an effort to discover the answer to that question."
"Bear in mind the approach that the Players have taken to these negotiations. It is:
- Given the enormous concessions players made in the last round, plus 7 years of record revenue reaching $3.3 billion last season, there is no reason for a reduction in the amount the players receive.
- Players are willing to take reduced share going forward so that the NHL can grow out of whatever problems some franchises face.
- The player contracting rights secured in the last negotiations should be, at minimum, maintained.
- Revenue sharing needs to be enhanced and structured so as to encourage revenue growth by the receiving teams.
- The overall agreement has to be fair and equitable for both parties. Bargaining is both give and take."
Let’s take it for what the situation is: There is a week to a week and a half to bargain up to this latest deadline (no centered around the beginning of the proposed 82 game schedule) and Fehr is going to attempt to gain as much ground as possible in building a positive deal for his membership. As such, he’s going to throw the faults, from the player’s perspective out there. He also realizes that when you send a letter out to a boatload of players and agents it’s going to make its way to the media, so there is an element of PR with the public (i.e., exposing the deal as less than the sacrifice by owners that the PA may have perceived many in the NHL hockey-craving public taking it as yesterday).
All that being said, this is all we have at hand in this moment to gauge the prospect of this deal getting done in time for an 82 game season to be had. Recognizing the necessity for the tone of the letter to reflect on-going player concerns, how should this message leave the NHL hockey fan feeling? This fan takes a great deal of skepticism from the letter, a sense that yesterday’s deal has been interpreted as a dog and pony show PR move by the league that sells a message of hope to the public by conveying sacrifice by the league, when the PA clearly sees it as claw-backs via clever accounting and ambiguous definition of revenue.
In short: I don’t feel Donald Fehr and company see the NHL having done anything hugely significant, and require further meetings to determine whether the league is sincere in negotiating or more interested in polishing it’s perception by the public. Should they become convinced in the latter, this may still be a long road we’re about to head down my friends, and casualties in the form of further games lost, if not a significant proportion of the season a la 1994 is certainly not out of the realm of possibilities. It may be that something gets hammered out and the puck drops in 16 days, but a healthy dose of cautious measurement of yesterday’s news should be practiced as well...
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Shawn Gates
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