With no additional bargaining sessions scheduled, the NHL appears headed toward locking out its 700 players when their contract expires at midnight Wednesday.
The NHL Players’ Association offered a new proposal Thursday that contained a rollback of salaries, luxury tax and revenue-sharing model, but the league rejected it. NHL Commissioner Gary Bettman still wants a salary cap, something the NFL and NBA already have. The players’ union says rejects the idea.
Here’s an overview:
Why would the absence of a new agreement on Sept. 15 result in a lockout, not a strike?
Players are not unhappy with the current system and have vowed not to strike. While players could agree to play without a new agreement, it’s expected the owners will lock them out and not pay them.
Didn’t the NHL extend the current labor agreement twice?
Yes. Owners last locked out players for 103 days, canceling 34 games of the 1994-95 season before reaching a new agreement. In 1995, the agreement was extended so the players could participate in the 1998 Winter Olympics. In 1997, the agreement was again extended with the decision to expand the 26-team league to 30 teams.
So what went wrong?
With the expansion from 21 to 30 teams and a national TV deal, revenues grew 163 percent, but salaries rose 252 percent. The union disputes the league’s figures, saying they are closer to revenue increases of 153 percent and salary increases of 170 percent.
Will franchises be contracted?
The NHL says it expects all 30 teams to be healthy under a new economic system. But some observers think a lengthy lockout could force some owners to pull the plug on their teams.
How much do players earn?
Average salaries have grown from $733,000 in 1994-95 to $1.83 million in 2003-04. The highest-paid players earned $11 million last season.
Don’t TV rights fees offset the costs of payroll?
Rights fees for hockey are minimal and far less than in other sports, and so few are watching. In the ongoing World Cup of Hockey, reruns of poker have drawn more than four times the audience than the hockey games on ESPN (1.7 rating to 0.4 in a recent matchup).
How long would a lockout last?
Several industry sources say they anticipate a resolution by January, allowing for a shortened season. But the union has warned to be prepared for as much as 18 months away from hockey.
Won’t the players give in once a work stoppage starts hitting them in the wallet?
The NHL has gathered a $300 million war chest to protect its franchises. The amount of the NHLPA’s lockout fund is unknown, but the union will pay equal stipends to 700 players and cover medical and other insurance.
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Can they play elsewhere?
Yes, and many of them already have plans to play in Europe. Others are considering other start-up leagues.
What about NHL and team employees?
Some teams have already laid off employees in anticipation of a lockout. The league plans to lay off more than 60 percent of its staff.