The NHL presented the players’ union with a new CBA proposal on Tuesday and some of the details are now being reported upon.
According to the Canadian Press, via the Globe and Mail, the new proposal is a six-year deal that would lower the players’ share of revenues to 51.6% in 2012-13, 50.5% in 2013-14, and provide the players with a 50-50 split for the final three seasons. According to Darren Dreger, the players would take a 49.6% share in Year 3 of the proposed CBA.
This all represents a reduction from the player’s current share of 57% of hockey-related revenues, but it is a greater share than the NHL’s original proposal.
However, as you probably suspect, it’s not that simple. As Chris Johnston reported, the initial three seasons of the proposed CBA are “delinked” from hockey-related revenues, while the final three seasons would operate under a redefined version of hockey-related revenues.
So what does that all mean?
Well, perhaps the easiest way to look at this is in terms of the salary cap. If this deal proceeds as planned, then the 2012-13 cap would be $58 million. Which, by the way, if there’s no rollback of current salaries or other adjustments, would mean that 16 teams are over the proposed cap based on the current figures from Cap Geek. The Boston Bruins and Minnesota Wild are currently exceeding the proposed salary cap by more than $10 million.
The USA Today speculates that because the NHL isn’t asking for salary rollbacks as far as existing contracts are concerned that “the adjustment could be made through changes in contracting practices, increases in league-wide revenue and contributions to player escrow.”
This proposal would also mean that the salary cap is projected to reach roughly $71 million in 2017-18. In other words, it might take six seasons before the proposed cap reaches the levels that the current CBA would set the cap at for 2012-13.
The two sides plan to meet again on Wednesday.