Labor Trouble Brewing Again In The NHL?
Labor Trouble Brewing Again In The NHL?
The players could end up owing the owners millions of dollars by the end of this CBA, plus the latest on Braden Holtby, Nick Robertson, and more in today’s NHL morning coffee headlines.
SPORTSNET: During the latest “31 Thoughts” podcast, Elliotte Friedman speculated the next round of collective bargaining between the NHL and NHL Players Association at the end of the current CBA could be affected by the players’ unwillingness to accept a higher rate of escrow and additional salary deferrals for the coming season.
Friedman noted the effects of COVID-19 upon hockey-related revenue means the players’ share for this season will exceed 50 percent. Under the terms of the CBA, the players have to repay any overage to the owners, but the 20 percent cap on escrow for 2020-21 means the players will still owe millions of dollars to the owners.
The players may feel vindicated by digging in their heels and forcing the league to adhere to the terms of the CBA. However, Friedman feels there’s a major bill coming due at the end of the current agreement that will be paid in large part by young players currently starting their NHL careers and those yet to come.
SPECTOR’S NOTE: The players were within their rights under the CBA to reject the league’s requests for additional escrow and salary deferral. But as Friedman also noted, NHL commissioner Gary Bettman was right when he indicated the players could end up paying back more at the end of this agreement if they didn’t pay that overage during the coming season.
This could set the stage for another contentious round of negotiations as the extension to the CBA expires in September 2026. Of course, that’s not a front-burner issue right now given the push for staging a season in the middle of a pandemic. Rest assured, however, it will take on greater significance during the final two years of the agreement.
Perhaps the two sides can work out a deal that avoids another potential work stoppage in six years’ time. That will require considerable foresight on both sides.
I don’t expect Bettman and the team owners to just let this issue lie. Sure, they need labor peace right now to get a shortened season underway in order to fulfill their broadcasting and advertising contracts and prepare to entertain bids for a more lucrative US television deal next summer. They also want to ensure a smooth path for the Seattle Kraken’s debut in 2021-22. However, the NHL could raise the overage issue with the players again at some point within the next couple of years.
THE SCORE: Josh Gold-Smith lists his winners and losers of the NHL’s proposed divisional realignment for the coming season. The Tampa Bay Lightning and Toronto Maple Leafs are among his clubs that benefit while the Boston Bruins and Vancouver Canucks are among those that could suffer.
SPECTOR’S NOTE: Some teams will be affected more than others by the quality of the opponents within their realigned divisions. Time zones and travel could also become a factor.
Vancouver Canucks goaltender Braden Holtby said he won’t wear the new Indigenous-themed mask he planned to use this season following complaints that it appropriated aboriginal culture. “I just wanted to make sure I apologize to anyone I had offended,” said Holtby.
TSN: Toronto Maple Leafs forward Nick Robertson won’t be joining Team USA at the upcoming World Junior Championship in Edmonton. The Leafs training camp is slated to open during the tournament.
AZCENTRAL.COM: Former hockey agency executive David Ludwig has been hired by the Arizona Coyotes as their new director of hockey operations and salary cap compliance.
The latest on the NHL efforts to open the 2020-21 season on Jan. 13 in today’s morning coffee headlines.
TSN: Pierre LeBrun reports negotiations are continuing between the NHL and NHLPA on an agreement for the 2020-21 season to put to a vote by their respective sides by perhaps the end of next week. Ratification is needed as soon as possible for players on last season’s seven non-playoff clubs that require 14-day quarantines before joining their clubs in training camp on Dec. 31.
Darren Dreger indicates everyone involved in the process remains hopeful. However, there are club executives, general managers and players agents who are skeptical this can be accomplished for a Jan. 13 puck drop because of the work that still needs to be done.
Frank Seravalli noted there are as many as four or five teams that could be unable to host games in their home arenas because of local health restrictions. Playing in a hybrid bubble or hub cities with a two weeks in, one week out schedule remains an option if necessary before eventually rolling out to all 31 NHL cities.
LeBrun also reported there won’t be any restrictions on trades between Canadian and American clubs during the season. Players involved in those deals would be subject to whatever quarantine regulations there are in that state or province.
Regarding divisional realignment, LeBrun said the NHL is looking into making a few adjustments. The Minnesota Wild and Dallas Stars are among the clubs that could be changing divisions. The original realignment saw the Wild in a division with Tampa Bay, Florida, Nashville, Carolina, Columbus, Detroit and Chicago. The Stars were to play with San Jose, Los Angeles, Anaheim, Vegas, Colorado, Arizona and St. Louis.
SPORTSNET: Divisional realignment is among the pressing issues to be resolved by the NHL and NHLPA before the 2020-21 season can begin. Playoff format, taxi squads, expanded rosters, exhibition games, training camps, bubble or hub cities and COVID protocols must also be addressed.
NHL insider John Shannon reported on Twitter the NHL is interested in securing COVID-19 vaccines when and if they become available for private sale. “The league is adamant they would not jump the line to do so,” said Shannon.
SPECTOR’S NOTE: That Jan. 13 start date could get pushed into late January or early February because of the complex issues that must be worked out. The course of the pandemic will also be the ultimate deciding factor.
The skepticism among some around the NHL is understandable. Nevertheless, the league and the PA have demonstrated they can reach agreements in a timely manner when it’s to their mutual benefit. It wouldn’t surprise me if they get this hammered out by this time next week.
More details on the plans to open the 2020-21 season on Jan. 13, the Flyers sign Philippe Myers, the Panthers’ expand their goalie coaching staff, and more in today’s NHL morning coffee headlines.
MORE DETAILS EMERGE REGARDING 2020-21 NHL SEASON PLANS
TSN: Pierre LeBrun reports the NHL understands that COVID-19 could affect the 2020-21 schedule. They are working on some empty days within the schedule to allow postponed games to be played.
LeBrun also indicates the league cannot go into a shortened season during a pandemic with the same rules governing roster limits. A proposal has been made to the NHLPA for expanded rosters indicating how many players each club can carry and “taxi squads”.
SPECTOR’S NOTE: For those of you unfamiliar with the term, a taxi squad is a group of players under contract with a team who practice with the club but aren’t on the roster. They are allowed to join the team if injuries occur. Taxi squads would address the difficulties of attempting to call up players from the minors during the pandemic.
The NHLPA held a conference call yesterday to bring the 31 player reps up to speed on the latest development. A conference call with the NHL Board of Governors is slated for today.
Darren Dreger reports there will be an opt-out option for players unwilling to participate in the coming season due to COVID-19. Mandatory vaccinations have also been discussed and agreed upon by the NHL and NHLPA.
Frank Seravalli reports the Canadian teams that lack AHL affiliates in Canada (Vancouver, Calgary and Edmonton) will use the taxi squad system to keep some players stashed in their home cities. The other four clubs plan to play their AHL affiliates in an all-Canadian division.
He also reports there won’t be any compliance buyouts to allow teams to garner cap relief by shedding salary without penalty.
SPECTOR’S NOTE: Normal buyouts for players 26-and-older count against the salary cap as two-thirds the remaining value over twice the remaining term of the contract and one-third over twice the remaining term for players 25-and-younger.
Seravalli indicates local health authorities will play a role in determining if certain teams, such as the San Jose Sharks and Winnipeg Jets, will be allowed to open the season in their home arenas.
It will take a two-thirds majority of the NHL board of governors to approve the plan for this season.
SPECTOR’S NOTE: Recent reports indicated some owners would prefer not playing this season if they don’t get some financial relief to offset some of their losses from a shortened schedule. Speculation suggests they number around a half-dozen, which wouldn’t be sufficient to vote down the plan for this season.
The NHL and the NHLPA agreed to abide by the rules of the CBA, meaning the league has backed off from its request for $300 million in higher escrow and salary deferral from the players. The NHL might have to consider other options, such as taking out loans, to address that financial need for some of its unhappy owners.
ESPN.COM: Greg Wyshynski and Emily Kaplan report the majority of the owners and players prefer a baseball-style three-game series. Hybrid bubbles or hub cities are a possibility to start the season, where teams would travel and play up to 10 games in two weeks and return home for a week.
Those hubs would be similar to those in Edmonton and Toronto during the playoffs but less strict. New Jersey, Columbus and Las Vegas are under consideration as those arenas have just one tenant, two sheets of ice and suitable nearby accommodation.
NEW YORK POST: Larry Brooks reports clauses in television contracts requiring a certain number of games and/or weeks to fulfill obligations are a major factor in the sudden rush to start the season.
SPECTOR’S NOTE: Fulfilling those obligations will also help the league in its quest for a more lucrative US national broadcasting deal following this season.
COLORADO HOCKEY NOW’s Adrian Dater tweets a league source claims training camp will open on Jan. 3 with the regular season opening on Jan. 13. “It’s not official yet, but this is what the players are hearing/being told.”
TORONTO SUN: Former Sportsnet analyst John Shannon told Lance Hornby a Canadian division will provide unique challenges for travel and broadcasting games.
MONTREAL GAZETTE: Canadiens sports science and performance director Pierre Allard is telling his players to ensure they’re ready for the upcoming season. The focus is on ensuring they’re in good health and condition to avoid injury during a compressed schedule.
SPECTOR’S NOTE: That’s a concern undoubtedly shared by the other NHL clubs based on reports in recent weeks of players engaged in voluntary workouts and off-ice training to prepare for the coming season.
IN OTHER NEWS…
NBC SPORTS PHILADELPHIA: The Flyers announced Philippe Myers signed a three-year, $7.65 million contract. The 23-year-old defenseman was a restricted free agent coming off his entry-level contract.
SPECTOR’S NOTE: That $2.55 million annual average value is a very affordable deal for the Flyers. Myers is expected to skate alongside Ivan Provorov on their top defense pairing. If he thrives in that role he’ll be in line for a more lucrative long-term contract in three year’s time.
FLORIDA HOCKEY NOW: The Panthers hired Francois Allaire as a goaltending consultant. He’ll be reunited with former pupil Roberto Luongo, who’s now a special advisor to general manager Bill Zito.
TRIBLIVE.COM: Former Pittsburgh Penguins minor-league assistant coach Jarrod Skalde has accused the club of violating whistleblower laws after he reported a superior for sexually assaulting his wife. The lawsuit claims then-Penguins assistant GM Bill Guerin informed Skalde the superior was being terminated from his position but instructed him the reasons had to be kept quiet and not be let out. Guerin, now GM of the Minnesota Wild, denies the allegation.
NHL, NHLPA target 56-game schedule starting Jan. 13, agree not to change the economic framework of CBA extension. Details and more in the morning coffee headlines.
SPORTSNET/TSN: Elliotte Friedman and Darren Dreger reported the NHL and NHLPA continue discussions aimed at a 56-game schedule beginning Jan. 13. Friedman indicates that includes “Training camps, opt-outs, testing, the schedule, the playoffs, re-alignment, you name it.”
Friedman also reports last season’s non-playoff clubs would begin training camp on Dec. 28 while the other 24 clubs begin on Jan. 1. It appears there won’t be any exhibition games. He also believes a short-term “hub plan” is being worked on but the preference remains for all teams playing in their home arenas. A potential problem is staging training camps in cities with strict COVID-19 restrictions such as Montreal, San Jose and Winnipeg.
Pierre LeBrun reports the plan will require approval from the NHL board of governors and the NHLPA membership. Friedman said there’s a desire to have it ready for approval by the end of this week.
The stalemate between the NHL and NHLPA over the league’s requests for increased escrow and salary deferral rates has ended with both sides agreeing the economic framework of the CBA won’t be changed.
Friedman and Dreger reported the players refused to consider any changes to escrow. On Sunday, they proposed to defer additional monies but wanted a significant concession from the league. Friedman reports one of their suggestions was a slight increase to the salary cap to put more money into the system. While that would’ve affected how much the players would have to give back to maintain the 50-50 revenue split, Friedman said the escrow caps in place weren’t a concern to the current group of players.
SPECTOR’S NOTE: The dispute over the escrow and deferral rates was a significant obstacle. The players’ refusal to budge appears to have forced the league to consider other options to make up a potential revenue shortfall.
A cap on escrow was what the players wanted and they were justified in insisting the league abide by the agreement. They could end up owing the league much more in escrow debt toward the end of the CBA extension but they seem willing to accept that potential consequence.
Both sides want to stage a season because there’s a lot at stake here. They cannot afford not to play when other major pro leagues are carrying on with their respective schedules. There are broadcasting and advertising contracts to be honored and the potential for a lucrative new US TV deal at the end of this season.
Some readers suggested the league could afford to shut down this season because of the three lockouts since 1994-95. The difference is league headquarters and the team owners were financially prepared for work stoppages arising from labor disputes with the NHLPA. They weren’t ready for the effects of a pandemic, plus they would face a strong legal challenge from the PA.
So how will the NHL find the $300 million they tried to squeeze from the players to stage this season? ESPN.com’s Emily Kaplan reports sources are saying the league is looking into a loan plan similar to that used by the NBA to provide its teams with cash to protect their finances ahead of this season.
That Jan. 13 start date could be flexible. Prior to last night’s reports, Vegas Golden Knights owner Bill Foley told Fox Business the season could open on Jan. 15 with the possibility it might have to slide by a week or two. Nevertheless, Foley is confident his club will be playing this season at their home arena, though it could be without fans in attendance.
IN OTHER NEWS…
THE PHILADELPHIA INQUIRER’s Sam Carchidi reports the Flyers are close to agreeing to a contract with Philippe Myers. “Could happen this week.”
SPECTOR’S NOTE: Myers is a restricted free agent coming out of his entry-level contract. It’ll be interesting to see if he gets a bridge contract or a long-term deal. We can probably expect signings of RFAs and unrestricted free agents will pick up once the Jan. 13 start date for this season is formally approved.
TAMPA BAY TIMES: The Lightning hired Rob Zettler to replace departed assistant coach Todd Richards. Zettler, a former NHL defenseman, is also the former head coach of the Lightning’s AHL affiliate in Syracuse. He worked as an assistant coach with the San Jose Sharks from 2017 to 2019.
IIHF.COM: International Ice Hockey Federation president Rene Fasel and general secretary Horst Lichtner have tested positive for COVID-19. This will not affect the IIHF’s preparations for the upcoming 2021 World Junior Championship in Edmonton.
SPORTSNET: The entire Northeast Division of the ECHL plus the Atlanta Gladiators and Norfolk Admirals have suspended play for the 2020-21 season under the league’s COVID-19 policy. The teams intend to return in 2021-22. Most are minor-league affiliates for several NHL clubs.
TORONTO STAR: A mint condition 1979 Wayne Gretzky card could become hockey’s first $1 million collectible card.