In a letter to players, NHLPA executive director Donald Fehr outlined the union's latest offer to the league on Wednesday. The full text of his message and the PA's offer is below:
The NHLPA’s Negotiating Committee today provided the NHL Owners with a comprehensive 6 page proposal on the key issues (see below). As you will read in the proposal, the players have made substantial moves in order to address all of the owners’ concerns, end the owners’ lockout and get the game back on the ice. Our proposal works off the league’s proposed language/structures and moves off our position that there be a guaranteed players’ share. These are major moves in the owners’ direction. Regarding player contractual issues, we have also addressed the owners concerns regarding back-diving contacts and NHL contacts being “buried” in the minors.
Now that we have made this proposal, there is no longer any doubt as to how far apart the parties are in dollars. As you will recall, we had previously said we thought the gap was less than $200M, while the owners had said that the gap was much larger and close to $1B. Under our proposal, it is now undisputed that the gap is only $182 M over 5 years. Now it is up to the owners to finally make a move towards the players.
At the same time, we have protected player rights by refusing to accept their proposals restricting free agency and salary arbitration.
Here are a few significant details from our proposal:
Players’ Share: A major move in the owners’ direction by removing guarantees or fixed targets for Players’ share.
Honouring Players’ Contracts/Transition payments: Players’ Share will equal 50 percent of HRR plus fixed payments in the first four years to partially honour player contracts and ease the transition to 50/50:
2012-13 - $182M
2013-14 - $128M
2014-15 - $72M
2015-16 - $11M
*The owners had previously proposed $211M
Long-term back-diving contracts – Cap benefit recapture rule so clubs no longer benefit from front-loading contracts (move in the owners’ direction)
Contracts in the minors – Clubs take a cap hit on contracts in the minors over $1M (move in the owners’ direction)
Four Recall Rule – Unlimited recalls after regular season (move in the owners’ direction)
Salary Arbitration – Elimination of walk-away from arbitrator’s decision, but clubs can still “walk-away” by not qualifying a player
Please read through the proposal below and contact the NHLPA if you have any questions. The league indicated that they plan to respond to our proposal later today. We will provide a further update following this meeting.
NHLPA Proposal -- 21 November 2012
This proposal addresses significant open issues concerning revenue sharing, player contracting, the players’ share, and certain other open areas, as reflected below. This proposal does not address other items upon which we have agreed or are pending, such as health and safety, hockey issues, the “jock tax”, and international.
1) Revenue Sharing
· Pool of $200 Million at $3.303 B of HRR. Varies year to year with HRR.
· Contributions to be raised per NHL formula. No discretion to increase individual team contributions beyond what formula provides
· Existing level of distributions to be protected for 2 years. If additional funds needed, raised pro-rata from all teams
· Revenue Sharing Oversight Committee (RSOC) has discretion to adjust amounts for Phase One distributions by up to +/- 15% per team, provided that all such adjustments are considered and decided upon at one time
o RSOC by unanimous vote may move beyond +/- 15% limitation towards but not exceeding the straight pool value for regular season HRR. (Must therefore compute straight pool every year.)
· Industry Growth Fund to be managed by the RSOC.
o IGF will have callable dollars of up to $20M in first year, $40M in second year, and $60M in each subsequent year of the agreement.
o Need to establish criteria for which teams may apply for IGF funding and/or will submit plans.
o IGF funding is available to any team by unanimous consent of RSOC
o IGF funding also available for industry-wide programs or projects