The NHL officially announced the cancellation of regular season games on Thursday afternoon due to the ongoing collective bargaining negotiations with the NHL Players Association. With the regular season scheduled to begin on Oct. 11 and no end to the labor unrest in sight, the cancellation of games became necessary due to time restraints.
The first set of cancellations will span from Oct. 11 to Oct. 24, totaling 82 games. It's unclear whether or not the league has officially canceled these 82 games for good or if they've simply canceled the schedule. Canceling the schedule and not the games would potentially allow these games to be played as part of a condensed schedule.
This announcement comes exactly one week after the NHL was forced to cancel the entirety of the preseason, which according to NHL deputy commissioner Bill Daly cost the league an estimated $100 million in lost revenue. One can only imagine how much more the league stands to lose. As of this time, the two sides are not expected to meet again until next week. The last round of negotiations failed to bridge the gap on key issues such as core economics and defining hockey related revenue.
Monday, 8 October 2012
Russian Stars may not return
While it's obviously clear the players around the NHL are frustrated about the lockout and games being canceled, what is becoming more and more evident is that the players are just as frustrated with the way that the league is handling negotiations. Both sides continue to blame the other side, but ultimately, it's the players who have to go out and perform once the league kicks back up and the lockout is lifted. Philadelphia Flyers goaltender Ilya Bryzgalov says that some Russian players may not return to the NHL once the lockout is lifted, as reported by TSN on Saturday. Bryzgalov is currently playing for CSKA Moscow of the Kontinental Hockey League, Russia's primary league for professional hockey, and he is suggesting that top players who can get comparable contracts will choose to remain in the KHL as opposed to returning, thanks to the lack of good faith from the league's owners.
"I think some of the players may not return to the NHL because you have everything here and major companies are going to pay the top players here big money. And, especially for Russians players who can play at home in front of their own fans and families and [earn] even bigger money than they have in the National Hockey League," said Bryzgalov.Bryzgalov finished by saying that the KHL can't pay all of the players the contracts they're after, but for "some big players," leaving the NHL and remaining in Russia is a real possibility. Bryzgalov expressed his dissatisfaction with the owners and says that they put themselves into this situation. He also said that the owners need to take responsibility for their own actions, and referenced the fact that teams continued to sign players to long deals in spite of the fact that a lockout was imminent. Only time will tell if the NHL is coming back any time soon, and at that point, we'll see if any big names remain with the KHL or perhaps even other organizations, though it begs the question as to whether or not the players have any legal precedent for breaking contract with their NHL teams once the lockout is lifted.
NHL Lockout - Day 23
CBA roundup
• The lockout has now eaten up a total of 179 games -- 97 preseason games and most recently 82 regular-season games.
• For some reason it takes a lot of planning and discussion to figure out the next time they are going to discuss next season and a new CBA. But on that note, some relatively good news, from Pierre LeBrun: By the looks of things formal talks will resume Wednesday or Thursday in New York City.
• Are all 30 owners united as one? Gary Bettman continues to maintain they are but he can't convince everybody that's the case. There are some teams that seem like they can't be all that thrilled with this current lockout, speculates Bruce Garrioch, who also spoke with a source on the matter.
• The lockout has now eaten up a total of 179 games -- 97 preseason games and most recently 82 regular-season games.
• For some reason it takes a lot of planning and discussion to figure out the next time they are going to discuss next season and a new CBA. But on that note, some relatively good news, from Pierre LeBrun: By the looks of things formal talks will resume Wednesday or Thursday in New York City.
• Are all 30 owners united as one? Gary Bettman continues to maintain they are but he can't convince everybody that's the case. There are some teams that seem like they can't be all that thrilled with this current lockout, speculates Bruce Garrioch, who also spoke with a source on the matter.
"My guess is you've got about 10 teams that are pretty nervous right now," said a league insider. "But [Bettman] has the power of the executive committee behind him." (Ottawa Sun)One of the many things that makes Bettman so tough in negotiations and an effective representative for the owners is he's incredibly smart. Sometimes the fans of the league might not think so, but he runs a tight ship and is always on the ball. He's so smart, in fact, his name is essentially a synonym for intelligent in the league offices.
"When I worked for the league we would say about a guy, 'He's smart but he's not Bettman-smart,'" [Brian] Burke said. (Globe and Mail)• Yet another player is headed overseas to play during the lockout as Red Wings forward Henrik Zetterberg is off to Switzerland. If you want to read anything about the CBA from Zetterberg's decision, Helene St. James thinks it's only a harbinger of bad. (@HeleneStJames)
Wednesday, 3 October 2012
Reasons not to be so confident
The NHL and the NHLPA met again yesterday, this time to talk about HRR (the big hurdle in this current lockout). That’s about all the good news that came from Tuesday. After a weekend that saw three straight meetings on the smaller issues – a meeting which yielded some progress – the NHL and the NHLPA took a day off to "do their homework" and then hit the negotiating table again on Tuesday. They were there for two hours. The length of meetings, along with the length between meetings is becoming a central theme to this lockout, especially when you view it in terms of the lack of progress the two sides have made since they started this process over the summer. Apparently, neither the NHL or the NHLPA seems to believe there’s anything to be gained from sitting down and trying to work things out at the negotiating table. Instead, the two sides have negotiated like small children. They’ve met, haven’t come to an agreement right away, thrown their hands in the air, walked away from each other grumbling in order to cool off before trying to meet again. The good news from this strategy? At least they’re still talking. The bad news? It’s eating up precious time, something the league currently doesn’t have an abundance of. You can throw the blame around any way you want – the popular pick is Gary Bettman and the owners – but as I have been preaching since the summer, there is plenty of blame to go around. The NHL and the NHLPA have both handled these negotiations horribly, and both Donald Fehr and Bettman should be embarrassed. While both sides have been singing to the media that they want to get a deal done, their actions have betrayed them. Sitting at a negotiating table for the first time in nearly three weeks (I’m not counting the weekend meetings here because they weren’t on the core issues) and not finding any middle ground after a couple of hours and then just ending the meeting right then and there is unacceptable. What’s the point of negotiating at all if the strategy is to get the other side to cave in a few hours, otherwise walk away with no resolution or no future plan?
And yet, that’s exactly what happened on Tuesday, with both parties essentially saying the same thing (and I’m paraphrasing here): "Nothing is going to get done until the other side makes the next move and budges first." And there’s the problem. Neither side is used to budging first. Both Fehr and Bettman are used to waiting out their opponents, which is why you’re seeing both sides take the patient approach. Remember that back in 2004 Bettman waited out the Union. He cancelled all the games, neither side spoke for months on end until the Union finally cracked and turned on itself – a move which resulted in the NHLPA taking a deal that was on the table before the lockout happened. Both sides have agreed that they’re miles ahead of the pace set during 2004, since the NHLPA is still negotiating in the salary cap world. Now the ball is in the owner’s court. Or, actually, Bettman’s court. The NHL is going to start to cancel regular season games, maybe as soon as today. Some have speculated that the NHL might only chop a couple of weeks as a sign of good faith to the NHLPA that they expect meaningful discussions and some progress in the future. Other reports have pointed towards Bettman actually slamming his hammer onto the schedule, ripping out a significant portion of games (think a month’s worth) and setting the tone for the negotiations. Again, the NHLPA deserves blame here too. Fehr has refused to move from his original proposal – stubbornness that has rightfully pissed off the owners – and was the driving force between the meetings about the non-core economic issues. Those meetings would have been looked back on as useful if the momentum carried over towards Tuesday. But it didn’t. And now those meetings seem like a gigantic waste of time and resources. Not that it matters anyway. Neither side is willing to look in the mirror. Which isn't surprising, since neither side wants to take any blame. Which is funny, because there is plenty of that to go around.
And yet, that’s exactly what happened on Tuesday, with both parties essentially saying the same thing (and I’m paraphrasing here): "Nothing is going to get done until the other side makes the next move and budges first." And there’s the problem. Neither side is used to budging first. Both Fehr and Bettman are used to waiting out their opponents, which is why you’re seeing both sides take the patient approach. Remember that back in 2004 Bettman waited out the Union. He cancelled all the games, neither side spoke for months on end until the Union finally cracked and turned on itself – a move which resulted in the NHLPA taking a deal that was on the table before the lockout happened. Both sides have agreed that they’re miles ahead of the pace set during 2004, since the NHLPA is still negotiating in the salary cap world. Now the ball is in the owner’s court. Or, actually, Bettman’s court. The NHL is going to start to cancel regular season games, maybe as soon as today. Some have speculated that the NHL might only chop a couple of weeks as a sign of good faith to the NHLPA that they expect meaningful discussions and some progress in the future. Other reports have pointed towards Bettman actually slamming his hammer onto the schedule, ripping out a significant portion of games (think a month’s worth) and setting the tone for the negotiations. Again, the NHLPA deserves blame here too. Fehr has refused to move from his original proposal – stubbornness that has rightfully pissed off the owners – and was the driving force between the meetings about the non-core economic issues. Those meetings would have been looked back on as useful if the momentum carried over towards Tuesday. But it didn’t. And now those meetings seem like a gigantic waste of time and resources. Not that it matters anyway. Neither side is willing to look in the mirror. Which isn't surprising, since neither side wants to take any blame. Which is funny, because there is plenty of that to go around.
Reasons to be optimistic
After a summer of swirling rumors, NHL fans had their worst fears confirmed—a 2012 NHL lockout. However, there are numerous factors suggesting that an NHL season will almost certainly resume before the 2012 Winter Classic. The main issue for the current lockout circulates around the 57 percent of NHL revenue that the players currently make. NHL Commissioner, Gary Bettman, wants this number to drop to 46 percent, which would increase the owners' share of the revenue from 43% to 54%. Bettman is hopping on the lockout bandwagon after seeing both the NBA and the NFL recently go into lockouts. he players, represented by the NHLPA and its leader Donald Fehr, do not feel that they should have to endure another pay cut. For the third lockout in 20 years, all of which have transpired during Bettman’s time as commissioner, the players and the owners will push and pull to come to terms. However, there is more on the table during this lockout than either of the previous two—the NHL cannot afford to hold out.
“In two other leagues, the N.B.A. and the N.F.L., their players have recognized that in these economic times, there is a need to retrench,” Bettman said.
“From the players’ standpoint, it’s the owners’ insistence that after seven years of record revenues and massive concessions the last time, they want the players to take another significant, absolute rollback in their compensation,” Fehr said.
Here are 5 reasons to be confident the 2012-13 season will resume before the start of the 2013 Winter Classic.
1 - Wayne Gretzky is confident it wont last for long.
2 - This is not 2004
3 - There is more money available from the recently signed TV deal.
4 - There has been consistent scheduling of formal talks.
5 - The Winter Classic is seen as being important enough to still go ahead and end the feud.
The 2004 lockout was a vicious battle between the players and the owners with many difficult issues at its core. The animosity that existed in 2004 is absent from the current lockout and it should be a lot easier for the two sides to come to an understanding. The main issue of 2004 was a salary cap. Bettman and the owners demanded there be a $35 million salary cap and “cost certainty,” which would give the players a 50 percent share of league revenue. ob Goodenow, the leader of the NHLPA at the time, was unwilling to give in to Bettman’s salary cap request and had warned players to prepare for the possibility of a two-season lockout. Goodenow felt that once the salary cap was officially put into place, owners would continue to bully the players into giving up more and more of their pay—hence, the 2012 lockout.
As of right now, any owners who speak publicly about the lockout can be fined by the NHL. Such action has already been taken against Detroit Red Wings Senior Vice President Jim Devellano.
TSN reports that Devellano’s fine was in the range of $250,000. So far, this is the only major public statement made by an owner; nothing in comparison to some of 2004’s remarks. During the 2004 lockout, former Philadelphia Flyers owner, Ed Snider, had much harsher words to say, specifically toward NHLPA leader Bob Goodenow:
Snider was not reprimanded for his comments about Goodenow. Currently, there is still respect between the two sides, despite their differing opinions—this is subject to change as the lockout drags on. The NHL released a report during the 2004 lockout by former U.S. Securities and Exchange Commissioner, Arthur Levitt, saying that the players received 71 percent of the league’s $1.9 billion revenue during the 2002-03 season. This was disputed by Goodenow, who countered by issuing his own report stating that there was $100 million of unreported hockey revenue that had been kept by four teams. There was much less transparency in the league’s funds in 2004 than there is now. Such accusations would be much harder to pull off in the current lockout.
“In two other leagues, the N.B.A. and the N.F.L., their players have recognized that in these economic times, there is a need to retrench,” Bettman said.
“From the players’ standpoint, it’s the owners’ insistence that after seven years of record revenues and massive concessions the last time, they want the players to take another significant, absolute rollback in their compensation,” Fehr said.
Here are 5 reasons to be confident the 2012-13 season will resume before the start of the 2013 Winter Classic.
1 - Wayne Gretzky is confident it wont last for long.
2 - This is not 2004
3 - There is more money available from the recently signed TV deal.
4 - There has been consistent scheduling of formal talks.
5 - The Winter Classic is seen as being important enough to still go ahead and end the feud.
The 2004 lockout was a vicious battle between the players and the owners with many difficult issues at its core. The animosity that existed in 2004 is absent from the current lockout and it should be a lot easier for the two sides to come to an understanding. The main issue of 2004 was a salary cap. Bettman and the owners demanded there be a $35 million salary cap and “cost certainty,” which would give the players a 50 percent share of league revenue. ob Goodenow, the leader of the NHLPA at the time, was unwilling to give in to Bettman’s salary cap request and had warned players to prepare for the possibility of a two-season lockout. Goodenow felt that once the salary cap was officially put into place, owners would continue to bully the players into giving up more and more of their pay—hence, the 2012 lockout.
"The bottom line is, if they want a hard (salary) cap, we'll sit out for the rest of our lives,” said Bryan McCabe, former players’ union representative and defenseman for the Toronto Maple Leafs, in 2004.
As of right now, any owners who speak publicly about the lockout can be fined by the NHL. Such action has already been taken against Detroit Red Wings Senior Vice President Jim Devellano.
"The owners can basically be viewed as the ranch, and the players, and me included, are the cattle," said Devellano. "The owners own the ranch and allow the players to eat there. That's the way it's always been and that the way it will be forever. And the owners simply aren't going to let a union push them around. It's not going to happen."
TSN reports that Devellano’s fine was in the range of $250,000. So far, this is the only major public statement made by an owner; nothing in comparison to some of 2004’s remarks. During the 2004 lockout, former Philadelphia Flyers owner, Ed Snider, had much harsher words to say, specifically toward NHLPA leader Bob Goodenow:
“I might jump over the table and choke him to death. That would not be good. That’s why they keep me out of the negotiations,” said Snider.
Snider was not reprimanded for his comments about Goodenow. Currently, there is still respect between the two sides, despite their differing opinions—this is subject to change as the lockout drags on. The NHL released a report during the 2004 lockout by former U.S. Securities and Exchange Commissioner, Arthur Levitt, saying that the players received 71 percent of the league’s $1.9 billion revenue during the 2002-03 season. This was disputed by Goodenow, who countered by issuing his own report stating that there was $100 million of unreported hockey revenue that had been kept by four teams. There was much less transparency in the league’s funds in 2004 than there is now. Such accusations would be much harder to pull off in the current lockout.
Tuesday, 2 October 2012
NHL counting the cost of Lockout
The financial losses are starting to pile up as a result of the NHL lockout. Today (Tuesday), the league made that public. In speaking to reporters after talks finished up for the day between the NHL and the NHLPA, Deputy Commissioner Bill Daly estimated that the league has lost $100 million in revenues from the canceled preseason. Although they can pick up at any time, for the moment, there are no further talks scheduled. That only further increases speculation that regular-season games could be lost, with an announcement sometime this week. The season was slated to begin Oct. 11. Tuesday’s bargaining session focused on the definition of hockey-related revenue, and featured NHLPA head Donald Fehr, his brother, Steve, the special counsel to the players’ association, and Winnipeg Jets defenseman Ron Hainsey. Daly, in an email to the Associated Press, said the league has not projected potential damage caused by the cancellation of any regular-season games. Clearly, the hope is that it won’t have to address that matter, but the clock is ticking. Now in its third week, the lockout has forced many players to head overseas to play on month-to-month contracts. Others who are eligible to play at the lower levels opened training camp last week with American Hockey League affiliates.
Bill Daly: “Today, was not overly encouraging. We are closer by definition (to canceling regular season games). We are focused on minimizing the damage. What we have repeatedly tried to communicate is that we need to hear from them to move this process along, and we do think that’s the only thing that is going to allow us to gain traction. But that doesn’t mean we stop everything we’re doing and simply wait around for a proposal. If there is something we feel we can do to move the process forward, I’m sure we won’t hesitate to do it.”
Donald Fehr: “They have made some incremental moves, (expecting to informally talk with NHL Commissioner Gary Bettman by Wednesday) It’s clear that the players have made substantial moves towards the owners and the owners have made substantial moves away from the players. We’re looking for a long-term deal that’s fair to the players, league and fans. Certainly, we’re trying to be as creative as (we can be).”
Steve Fehr: “I don’t know (that) I would agree with (that) phrase. Talks can resume anytime they’re ready.”
The National Hockey League might be mere hours away from the first announcement of called-off regular-season games. The league and locked-out players met for plenty of hours over the weekend for there to be some semblance of progress. However, none was reported. More of the same came on Tuesday, when NHL deputy commissioner Bill Daly told reporters that the players weren't willing to compromise. Oddly enough, the players seem to think the owners don't want to compromise, either. So you have a dispute where each side is accusing the other of not wanting to compromise. Meanwhile, the league has already called off the preseason, something Daly said will cost the NHL some $100 million in revenue. (It helps immensely that players are given only modest stipends during the preseason. It's almost nothing but profit for the league and its 30 owners. Could be safe to assume that most players weren't upset about the cancellation of the preseason whatsoever.) Next up are games that count, and the loss of those will mean heavier losses for all sides involved. While the players and owners fight over their $3.3 billion of revenue – and risk losing a chunk of it if they don't stop fighting over it – fans just sit and shake their heads. Of course, the league has already taken its fanbase for granted. Since the fans came back in droves after the 2004-2005 season was canceled by a lockout, commissioner Gary Bettman seems to have surmised that it will happen the same way this time around, no matter how much of the 2012-13 season ends up being lost. It's hard to understand the rhetoric. The sides are convinced that they are living the definition of insanity – doing the same thing over and over again, expecting a different result – by continuing to meet when the other side doesn't want anything to do with a compromise. Obviously, the league is in trouble here if both sides are telling the truth. If neither the owners nor the Players Association are willing to meet somewhere in the neighborhood of the middle, the league will probably not have a season, at least not one that starts anytime soon. Perhaps attitudes change once money is lost. As I already mentioned, the NHL players don't get paid during the preseason, outside of a stipend. If they get their escrow money in October as expected, that means it will be closer to the end of the month before they completely miss a paycheck. And, of course, some of them are playing overseas and drawing income from that. It isn't the same income, but it's income, and it might keep some from trying to push their fellow members for a deal as quickly as they normally would. Meanwhile, the owners might have lost $100 million on the cancellation of the preseason, but that's a whopping 3 percent of revenue for the whole season. You and I might scrounge sometimes, but if you have 50 dollars in your pocket, and $1.50 falls through a hole and onto the ground, never to be seen again, I doubt it would be the end of the world.
However, once regular-season games start disappearing, teams will begin to feel it a little bit more. Many more will start laying off employees or drastically cutting their pay. Those teams will face public-relations hits, since it's not like the lockout was initiated by the players or something, and Bettman insists he has unanimous support for this. All of this is grasping at straws, but perhaps something happens along the way in the next month that forces the two sides back to the table for substantive discussions. Oh, and you should also remember that – as unproductive as they have been – there have been more talks in the last month than there were for the first couple months of the lockout last time around. They might not be agreeing, but at least they're speaking.
Anyone that thinks the NHLPA will walk away from the NHL lockout with any type of win is delusional. The fact is that the NHLPA is in a no-win situation and no matter what the end result, they will walk away as losers in their fight with NHL Commissioner Gary Bettman and the NHL owners. Bettman and the owners have dug in their heels on the percentage of hockey-related revenue they are willing to share with the NHLPA. In response, union head Donald Fehr and the players have crossed their arms and set scowls upon their faces, vowing to not accept the paltry offer the NHL has extended their way. Both sides seem willing to forgo the entire 2012-13 season to make their point, and while that solidarity is nice on the part of the NHLPA, it’s basically the players taking $1.873 billion in player salaries and flushing it down the toilet. The players made a total of $1.873 billion last year, and if there is no season they will never get that money back, which means no $11 million for Ilya Kovalchuk and no $525,000 for the players making the NHL minimum salary. $1.873 billion gone, never to be seen again. Without some significant give on HRR, the season will most likely be lost. While the NHLPA may consider their strong united front and refusal to give in to the demands of Bettman and the owners a victory, it will be hard to believe those claims when the players forgo almost two billion dollars. I understand the thinking, but the reality is no NHL owner got rich from owning an NHL team, they were rich before they owned those teams and will remain rich with or without an NHL season. In fact, if we are to believe the claims of some teams, the owners may actually save money by scrapping the 2012-13 season. So while the owners will still be swimming in cash with or without an NHL season, can the same be said of the individuals that were not rich before they became NHL players? If the players do cave in and agree to the NHL’s HRR number and sign off on a new collective bargaining agreement, they can be sure that when that deal expires, the owners will be looking to take more back from them. Agreeing to the huge cut in HRR will show weakness, and you can bet that the owners will look to exploit that perceived weakness the next time the two groups sit across from each other at the bargaining table. There you have it in a nutshell, the NHLPA can stand strong and give up nearly two billion dollars or they can sign off on a new CBA and expect to get fleeced again a few years down the road. They can’t win, they can only lose less and that’s an awful situation for the players to be in.
Bill Daly: “Today, was not overly encouraging. We are closer by definition (to canceling regular season games). We are focused on minimizing the damage. What we have repeatedly tried to communicate is that we need to hear from them to move this process along, and we do think that’s the only thing that is going to allow us to gain traction. But that doesn’t mean we stop everything we’re doing and simply wait around for a proposal. If there is something we feel we can do to move the process forward, I’m sure we won’t hesitate to do it.”
Donald Fehr: “They have made some incremental moves, (expecting to informally talk with NHL Commissioner Gary Bettman by Wednesday) It’s clear that the players have made substantial moves towards the owners and the owners have made substantial moves away from the players. We’re looking for a long-term deal that’s fair to the players, league and fans. Certainly, we’re trying to be as creative as (we can be).”
Steve Fehr: “I don’t know (that) I would agree with (that) phrase. Talks can resume anytime they’re ready.”
The National Hockey League might be mere hours away from the first announcement of called-off regular-season games. The league and locked-out players met for plenty of hours over the weekend for there to be some semblance of progress. However, none was reported. More of the same came on Tuesday, when NHL deputy commissioner Bill Daly told reporters that the players weren't willing to compromise. Oddly enough, the players seem to think the owners don't want to compromise, either. So you have a dispute where each side is accusing the other of not wanting to compromise. Meanwhile, the league has already called off the preseason, something Daly said will cost the NHL some $100 million in revenue. (It helps immensely that players are given only modest stipends during the preseason. It's almost nothing but profit for the league and its 30 owners. Could be safe to assume that most players weren't upset about the cancellation of the preseason whatsoever.) Next up are games that count, and the loss of those will mean heavier losses for all sides involved. While the players and owners fight over their $3.3 billion of revenue – and risk losing a chunk of it if they don't stop fighting over it – fans just sit and shake their heads. Of course, the league has already taken its fanbase for granted. Since the fans came back in droves after the 2004-2005 season was canceled by a lockout, commissioner Gary Bettman seems to have surmised that it will happen the same way this time around, no matter how much of the 2012-13 season ends up being lost. It's hard to understand the rhetoric. The sides are convinced that they are living the definition of insanity – doing the same thing over and over again, expecting a different result – by continuing to meet when the other side doesn't want anything to do with a compromise. Obviously, the league is in trouble here if both sides are telling the truth. If neither the owners nor the Players Association are willing to meet somewhere in the neighborhood of the middle, the league will probably not have a season, at least not one that starts anytime soon. Perhaps attitudes change once money is lost. As I already mentioned, the NHL players don't get paid during the preseason, outside of a stipend. If they get their escrow money in October as expected, that means it will be closer to the end of the month before they completely miss a paycheck. And, of course, some of them are playing overseas and drawing income from that. It isn't the same income, but it's income, and it might keep some from trying to push their fellow members for a deal as quickly as they normally would. Meanwhile, the owners might have lost $100 million on the cancellation of the preseason, but that's a whopping 3 percent of revenue for the whole season. You and I might scrounge sometimes, but if you have 50 dollars in your pocket, and $1.50 falls through a hole and onto the ground, never to be seen again, I doubt it would be the end of the world.
However, once regular-season games start disappearing, teams will begin to feel it a little bit more. Many more will start laying off employees or drastically cutting their pay. Those teams will face public-relations hits, since it's not like the lockout was initiated by the players or something, and Bettman insists he has unanimous support for this. All of this is grasping at straws, but perhaps something happens along the way in the next month that forces the two sides back to the table for substantive discussions. Oh, and you should also remember that – as unproductive as they have been – there have been more talks in the last month than there were for the first couple months of the lockout last time around. They might not be agreeing, but at least they're speaking.
Anyone that thinks the NHLPA will walk away from the NHL lockout with any type of win is delusional. The fact is that the NHLPA is in a no-win situation and no matter what the end result, they will walk away as losers in their fight with NHL Commissioner Gary Bettman and the NHL owners. Bettman and the owners have dug in their heels on the percentage of hockey-related revenue they are willing to share with the NHLPA. In response, union head Donald Fehr and the players have crossed their arms and set scowls upon their faces, vowing to not accept the paltry offer the NHL has extended their way. Both sides seem willing to forgo the entire 2012-13 season to make their point, and while that solidarity is nice on the part of the NHLPA, it’s basically the players taking $1.873 billion in player salaries and flushing it down the toilet. The players made a total of $1.873 billion last year, and if there is no season they will never get that money back, which means no $11 million for Ilya Kovalchuk and no $525,000 for the players making the NHL minimum salary. $1.873 billion gone, never to be seen again. Without some significant give on HRR, the season will most likely be lost. While the NHLPA may consider their strong united front and refusal to give in to the demands of Bettman and the owners a victory, it will be hard to believe those claims when the players forgo almost two billion dollars. I understand the thinking, but the reality is no NHL owner got rich from owning an NHL team, they were rich before they owned those teams and will remain rich with or without an NHL season. In fact, if we are to believe the claims of some teams, the owners may actually save money by scrapping the 2012-13 season. So while the owners will still be swimming in cash with or without an NHL season, can the same be said of the individuals that were not rich before they became NHL players? If the players do cave in and agree to the NHL’s HRR number and sign off on a new collective bargaining agreement, they can be sure that when that deal expires, the owners will be looking to take more back from them. Agreeing to the huge cut in HRR will show weakness, and you can bet that the owners will look to exploit that perceived weakness the next time the two groups sit across from each other at the bargaining table. There you have it in a nutshell, the NHLPA can stand strong and give up nearly two billion dollars or they can sign off on a new CBA and expect to get fleeced again a few years down the road. They can’t win, they can only lose less and that’s an awful situation for the players to be in.
Monday, 1 October 2012
3rd day of Talks
The NHL and the players’ association met for a third straight day yesterday (Sunday), and again avoided the troublesome money issues that are fueling the ongoing lockout, during 5 hours of talks. The drug policy was a key component of talks Friday when the sides got together for the first time since theNHL imposed the lockout on Sept. 16. On Saturday, the sides focused on clarifications of definitions of what makes up hockey-related revenue — a pot that exceeded $3 billion. Because of difficulty in finding common ground on how to split up that money, the league and union instead concentrated all weekend on secondary issues that will also be included in any new agreement. Negotiations on Sunday were conducted at the league office without NHLPA Executive Director Donald Fehr and NHL Commissioner Gary Bettman. They met privately Friday and Saturday, away from the other group negotiations. There was a thought that talks might continue Monday, but that doesn’t seem likely as the NHL wants to meet internally with its clubs before getting back together with the players’ association. There is no timetable for talks to resume, but Tuesday is a possibility. The entire preseason slate of games was canceled by the NHL on Thursday, and regular-season games, scheduled to begin Oct. 11, could soon be called off, too. The NHL canceled the entire 2004-05 season because of a lockout that eventually led to the collective bargaining agreement that expired this month. By working on secondary agreements now, the sides are ahead of where they were back in 2005 when a deal was finally finished.
Steve Fehr: “We did not discuss core economic issues, as was the plan, we discussed health and safety, drug testing, including more discussion of drug testing, medical care etc. Also a number of things in the CBA legal area of player movements. It was a productive day. We made some progress in some areas. I would say it’s good that we were talking. It’s true that we could’ve done this last week or a week before or a week before that, but it’s a lot better than doing it three weeks from now.”
Bill Daly: “I hate to sound like a broken record, but we need some movement on the economic issues. We need some movement on the system issues, we need them to be scheduled as the subject of a meeting, and right now the union is not prepared to do that. I think that may demonstrate more than anything else the nature of the issues we’re talking about. We’re really talking about kind of micro issues, issues we deal with on a day-to-day basis that don’t necessarily rise to the commissioner’s level or the executive director’s level. So they will be at the table when we’re talking about the issues that are really going to get this deal done or not. We covered a lot of things over the last three days. We both have a lot of homework projects to do and drafts we owe each other on certain things. We think (Monday) would be best used for that purpose. What we did today, and the last two days, I don’t think any of that is going to get a deal done. But they are all necessary elements of the deal. All the stuff we’ve done the last three days were things we did after we had resolved the economic issues, and this one is not playing out that way. We’ll have to see how it plays out.”
Steve Fehr: “We did not discuss core economic issues, as was the plan, we discussed health and safety, drug testing, including more discussion of drug testing, medical care etc. Also a number of things in the CBA legal area of player movements. It was a productive day. We made some progress in some areas. I would say it’s good that we were talking. It’s true that we could’ve done this last week or a week before or a week before that, but it’s a lot better than doing it three weeks from now.”
Bill Daly: “I hate to sound like a broken record, but we need some movement on the economic issues. We need some movement on the system issues, we need them to be scheduled as the subject of a meeting, and right now the union is not prepared to do that. I think that may demonstrate more than anything else the nature of the issues we’re talking about. We’re really talking about kind of micro issues, issues we deal with on a day-to-day basis that don’t necessarily rise to the commissioner’s level or the executive director’s level. So they will be at the table when we’re talking about the issues that are really going to get this deal done or not. We covered a lot of things over the last three days. We both have a lot of homework projects to do and drafts we owe each other on certain things. We think (Monday) would be best used for that purpose. What we did today, and the last two days, I don’t think any of that is going to get a deal done. But they are all necessary elements of the deal. All the stuff we’ve done the last three days were things we did after we had resolved the economic issues, and this one is not playing out that way. We’ll have to see how it plays out.”
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