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.
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.
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!
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 , The Hockey News and Eishockey News. I'm also a regular on The Faceoff Hockey Show and a frequent guest on "The Late Crew" on The Team 1200 Ottawa.