Spector's Blog
by: Spector
No NHL-NHLPA Labor War in 2009.
May 17, 2008 | 10:39AM | report this

Reuters recently reported NHLPA Executive Director Paul Kelly said the players likely won’t make a decision on re-opening the current NHL Collective Bargaining Agreement until the middle of the 2008-09 season.

Under the terms of the current CBA the players have the option of re-opening the deal after the end of next season, but Kelly suggests there may not be much desire from the majority of players to do so.

"We're just beginning to have that dialogue with the players," he said at the Sports Lawyers Association's annual conference in San Francisco. "I don't think anyone has a tremendous appetite for serious labor negotiations unless there's a good, solid business reason for it."

While acknowledging the union would love to kill the salary cap, he warned that reopening the deal would also give owners a crack at renegotiating parts of the contract they do not like.

"The players need to understand ... be careful what you wish for; that you could be finding yourself embroiled in a much longer and more difficult discussion," he said.

Quite frankly, at this point in time there’s no logical reason for the players to revisit labor negotiations with the NHL.

The current CBA has worked out far better for the players than their numerous critics predicted when the deal was ratified in July 2005. The average player salary and median salaries are higher now than they were in 2003-04, the final season under the previous CBA.

Since the NHL returned to action under the current deal, the salary cap has risen significantly each season, from the $39.5 million of 2005-06 to this season’s $50.3 million, to the projected $55-$56 million for the 2008-09 season.

And with the Nashville Predators, Chicago Blackhawks, Los Angeles Kings, Minnesota Wild and Buffalo Sabres all reportedly raising ticket prices for next season, the NHL’s new $100 million per season contract with Hockey Night in Canada, the robust Canadian dollar and the tapping of other revenue streams, the cap will likely rise again for the 2009-10 season.

The mandated salary cap “floor” - $16 million less than the cap “ceiling” – ensures teams cannot get cheap with players salaries, forcing them to spend a mandated set amount each season.

In 2005-06, the “floor” was $23.5 million. Next season, it could be around $39.5 million – the same figure as the cap ceiling just three short seasons ago.

The constantly rising salary cap is by itself enough of a reason for the players not to re-open the CBA. They may not like the cap but it hasn’t hurt them anywhere near as much as predicted.

By making the comment about the lack of appetite by the players to re-open talks unless there’s a sound business reason for doing so, I think Kelly’s already tipped hockey fans as to their intent.
There really isn’t the stomach for another potentially contentious round of labor talks among the majority of players, or for that matter among many of the owners, so soon after the season-killing lockout of 2004-05.

Of course it’s always possible things could change between now and next summer to spur the players into re-opening talks, but seeing how the league and the owners cannot make any changes to the CBA without getting the concurrence of the NHLPA, that doesn’t appear possible.

Even if the PA were to decide to re-open negotiations, the unwillingness between both sides for another protracted labor battle could potentially bring about a far quicker resolution than we’ve seen in previous rounds.

Rest easy, NHL hockey fans, there won’t be another CBA labor war in 2009. 

6 Comments | Add a comment   categories: NHL, NHLPA, Collective Bargaining Agreement, Paul Kelly, CBA
 
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Sakic19
May 17, 2008
4:03 PM
I know there's no chance it would ever happen, but I'd love to see the individual percentage drop from 20 to 15.

coyoteslover
May 17, 2008
4:31 PM
man, if there is a stoppage again, Hockey would no longer be.

Matt_McCallum
May 18, 2008
9:18 PM
The only thing that the NHLPA needs to worry about at the moment is a softening of the Canadian dollar. If the dollar drops back to $0.90 USD, that would likely flatten out the growth of hockey related revenues. A further dip would likely put HRR in a negative growth mode, and more than a few teams would face a serious cap crunch.

fauxrumors5
May 19, 2008
5:45 AM
1) Kelly's no fool. As Lyle correctly points out the CBA is workig out very well for the players. They will be happy to see this current arrangeent last as long as possible.
2) Not sure when it expires, 2012? You can bet the owners will want to alter the CBA significantly(again) when it expires. We are already hearing the ground work as some owners are complaining they are losing money. No open labour hostilities in 2009, but this is only a temporary truce. The war is far from over!

Greenspire
May 20, 2008
10:15 AM
Spector, when's the MVP announced?

-Mike Greenspire

Spector
May 20, 2008
1:21 PM
June 12th.

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Spector
I'm Lyle Richardson, also known as Spector, Foxsports.com
's "Prince of Pucks".,which
is based on the fact I live in Prince Edward Island, Canada and I couldn't think of a better byline. I've been an NHL hockey commentator since 1998 on my website, Spector's Hockey, and I'm a contributing writer for Foxsports.com
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