NHL Collective Bargaining Agreement
Encyclopedia
The NHL collective bargaining agreement (CBA) is the basic contract between the National Hockey League
(NHL) team owners and the NHL Players Association
(NHLPA), designed to be arrived at through the typical labor-management negotiations of collective bargaining
. The most recent agreement, tentatively reached on July 13, 2005 after a labor dispute which caused the cancellation of the 2004–05 season, was ratified by the NHLPA membership on July 21 and by the league's Board of Governors the following day on July 22.
The previous agreement was signed in 1995
following a lockout
which shortened the 1994–95 NHL season to 48 games, a loss of 36 games from what had originally been an 84-game schedule. None of the games scheduled for the 1994 segment of the season was ever played, the lockout lasting until after the beginning of 1995. The collective bargaining agreement was initially to last for six seasons and be open to re-negotiation in 1998
, but was eventually extended to last until September 15, 2004 (one day after the World Cup of Hockey
final in Toronto
).
On the expiration date of the old agreement, the NHL Board of Governors, representing ownership, met and unanimously decided that the 2004–05 NHL season would be delayed until a new collective bargaining agreement was in place. The owners' lockout
of players began at 12:01 a.m. on September 16, 2004, the day most NHL training camps would have opened had the NHLPA and the NHL come to an agreement. By November 2004 it became apparent that the entire 2004–05 season was in jeopardy and supposedly "last-ditch" efforts were undertaken to avoid this, but little, if any, progress was seen during the last few months of 2004. The general consensus of many sportswriters and other knowledgeable observers was that, if the entire 2004–05 season were cancelled, the owners would attempt to open training camps in September 2005 for the 2005–06 NHL season using "replacement players," who are either not members of the NHLPA or were willing to resign their memberships.
On February 13, 2005, the U.S. Federal Mediation and Conciliation Service
called a meeting between the two sides to negotiate a new deal. Three days later, NHL commissioner Gary Bettman
officially cancelled the season. There was some hope that a season could have been salvaged, as hockey legends Wayne Gretzky
and Mario Lemieux
, both now part-owners of NHL teams, brought the owners and players together for talks on February 19. However, the two sides failed to reach an agreement.
Once the possibility of losing a second season to the dispute became real and the two sides realised that the dispute had alienated a large portion of the league's fan base, the league and the NHLPA resumed negotiations again in June 2005. Many pundits thought that the two sides wished to come to an agreement in early July, to coincide with the Canada Day
(July 1) and United States
Independence Day
(July 4) holiday season. While July 4 passed without an agreement, momentum for a settlement was clearly building, with the two sides meeting daily between July 5 and July 13. Reportedly, the July 12 session lasted until 6 a.m. local time (1000 UTC) on July 13, at which time talks recessed for five hours. The sides announced a tentative agreement at 12:30 p.m. Eastern Time (1630 UTC) on the 13th. It was said that they announced it on that day since it was the day before MLB All Star Game and no other sporting event in North America was taking place.
The most important provision of the new collective bargaining agreement is an overall salary cap
for all NHL teams, tied to league revenues. The agreement also phases in a reduced age for free agency
, which will eventually give players unrestricted rights to negotiate with any team at age 27 or after 7 years of play in the NHL, whichever comes first.
The current CBA is set to expire on September 15, 2012. The 2011–12 NHL season
will be the final year of the current collective bargaining agreement as the NHL Players' Association will no longer have the option to extend the current CBA.
On September 4, 2010 the NHL and NHLPA ratified an agreement to alter how the salary cap hit of long term contracts would be calculated. The new salary cap accounting system would see two distinct changes. First, long term contracts remain valid but contracts that include years when a player aged 40 or older will only have the portion of their salaries before they turn 40 included in cap hit calculation. Second, if the average value of the three highest seasons is $5.75 million or more, then the value of years 36 through 39 will have a minimum cap "charge" of $1 million.
These changes came shortly after Ilya Kovalchuk
's contract extension with the New Jersey Devils
was voided due to "cap circumvention". Other long term contracts such as Marc Savard
, Roberto Luongo
and Marian Hossa
were grandfathered in and their respective cap hits calculated under the old accounting system. However, any long term contracts signed on September 5, 2010 would be subject to the new system.
National Hockey League
The National Hockey League is an unincorporated not-for-profit association which operates a major professional ice hockey league of 30 franchised member clubs, of which 7 are currently located in Canada and 23 in the United States...
(NHL) team owners and the NHL Players Association
NHL Players Association
The National Hockey League Players' Association or NHLPA is the labor union for the group of professional hockey players who are under Standard Player Contracts to the thirty member clubs in the National Hockey League located in the United States and Canada...
(NHLPA), designed to be arrived at through the typical labor-management negotiations of collective bargaining
Collective bargaining
Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions...
. The most recent agreement, tentatively reached on July 13, 2005 after a labor dispute which caused the cancellation of the 2004–05 season, was ratified by the NHLPA membership on July 21 and by the league's Board of Governors the following day on July 22.
The previous agreement was signed in 1995
1995 in sports
1995 in sports describes the year's events in world sport.-Alpine skiing:* Alpine Skiing World Cup** Men's overall season champion: Alberto Tomba, Italy** Women's overall season champion: Vreni Schneider, Switzerland-American football:...
following a lockout
Lockout (industry)
A lockout is a work stoppage in which an employer prevents employees from working. This is different from a strike, in which employees refuse to work.- Causes :...
which shortened the 1994–95 NHL season to 48 games, a loss of 36 games from what had originally been an 84-game schedule. None of the games scheduled for the 1994 segment of the season was ever played, the lockout lasting until after the beginning of 1995. The collective bargaining agreement was initially to last for six seasons and be open to re-negotiation in 1998
1998 in sports
1998 in sports describes the year's events in world sport.-Alpine skiing:* Alpine Skiing World Cup** Men's overall season champion: Hermann Maier, Austria** Women's overall season champion: Katja Seizinger, Germany-American football:...
, but was eventually extended to last until September 15, 2004 (one day after the World Cup of Hockey
World Cup of Hockey
The World Cup of Hockey is an international ice hockey tournament. Inaugurated in 1996, it is the successor to the previous Canada Cup, which ran from 1976 to 1991...
final in Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
).
On the expiration date of the old agreement, the NHL Board of Governors, representing ownership, met and unanimously decided that the 2004–05 NHL season would be delayed until a new collective bargaining agreement was in place. The owners' lockout
Lockout (industry)
A lockout is a work stoppage in which an employer prevents employees from working. This is different from a strike, in which employees refuse to work.- Causes :...
of players began at 12:01 a.m. on September 16, 2004, the day most NHL training camps would have opened had the NHLPA and the NHL come to an agreement. By November 2004 it became apparent that the entire 2004–05 season was in jeopardy and supposedly "last-ditch" efforts were undertaken to avoid this, but little, if any, progress was seen during the last few months of 2004. The general consensus of many sportswriters and other knowledgeable observers was that, if the entire 2004–05 season were cancelled, the owners would attempt to open training camps in September 2005 for the 2005–06 NHL season using "replacement players," who are either not members of the NHLPA or were willing to resign their memberships.
On February 13, 2005, the U.S. Federal Mediation and Conciliation Service
Federal Mediation and Conciliation Service (USA)
The Federal Mediation and Conciliation Service is an independent agency of the United States government, founded in 1947, which provides mediation services to industry, community and government agencies worldwide. One of its most common tasks is to help to mediate labor disputes around the country....
called a meeting between the two sides to negotiate a new deal. Three days later, NHL commissioner Gary Bettman
Gary Bettman
Gary Bruce Bettman is the commissioner of the National Hockey League , a post he has held since February 1, 1993. Previously, Bettman was a senior vice-president and general counsel to the National Basketball Association...
officially cancelled the season. There was some hope that a season could have been salvaged, as hockey legends Wayne Gretzky
Wayne Gretzky
Wayne Douglas Gretzky, CC is a Canadian former professional ice hockey player and former head coach. Nicknamed "The Great One", he is generally regarded as the best player in the history of the National Hockey League , and has been called "the greatest hockey player ever" by many sportswriters,...
and Mario Lemieux
Mario Lemieux
Mario Lemieux, OC, CQ is a Canadian former professional ice hockey player. He is acknowledged to be one of the best players of all time. He played 17 seasons as a forward for the Pittsburgh Penguins of the National Hockey League between 1984 and 2006...
, both now part-owners of NHL teams, brought the owners and players together for talks on February 19. However, the two sides failed to reach an agreement.
Once the possibility of losing a second season to the dispute became real and the two sides realised that the dispute had alienated a large portion of the league's fan base, the league and the NHLPA resumed negotiations again in June 2005. Many pundits thought that the two sides wished to come to an agreement in early July, to coincide with the Canada Day
Canada Day
Canada Day , formerly Dominion Day , is the national day of Canada, a federal statutory holiday celebrating the anniversary of the July 1, 1867, enactment of the British North America Act , which united three British colonies into a single country, called Canada, within the British Empire...
(July 1) and United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
Independence Day
Independence Day (United States)
Independence Day, commonly known as the Fourth of July, is a federal holiday in the United States commemorating the adoption of the Declaration of Independence on July 4, 1776, declaring independence from the Kingdom of Great Britain...
(July 4) holiday season. While July 4 passed without an agreement, momentum for a settlement was clearly building, with the two sides meeting daily between July 5 and July 13. Reportedly, the July 12 session lasted until 6 a.m. local time (1000 UTC) on July 13, at which time talks recessed for five hours. The sides announced a tentative agreement at 12:30 p.m. Eastern Time (1630 UTC) on the 13th. It was said that they announced it on that day since it was the day before MLB All Star Game and no other sporting event in North America was taking place.
The most important provision of the new collective bargaining agreement is an overall salary cap
Salary cap
In professional sports, a salary cap is a cartel agreement between teams that places a limit on the amount of money that can be spent on player salaries. The limit exists as a per-player limit or a total limit for the team's roster, or both...
for all NHL teams, tied to league revenues. The agreement also phases in a reduced age for free agency
Free agent
In professional sports, a free agent is a player whose contract with a team has expired and who is thus eligible to sign with another club or franchise....
, which will eventually give players unrestricted rights to negotiate with any team at age 27 or after 7 years of play in the NHL, whichever comes first.
The current CBA is set to expire on September 15, 2012. The 2011–12 NHL season
2011–12 NHL season
The 2011–12 NHL season is the 95th season of operation of the National Hockey League . It is the fifth consecutive season that opens in Europe with NHL Premiere games. As with the previous season, three events are scheduled: two games will be held in Stockholm, Sweden; one game in Helsinki,...
will be the final year of the current collective bargaining agreement as the NHL Players' Association will no longer have the option to extend the current CBA.
On September 4, 2010 the NHL and NHLPA ratified an agreement to alter how the salary cap hit of long term contracts would be calculated. The new salary cap accounting system would see two distinct changes. First, long term contracts remain valid but contracts that include years when a player aged 40 or older will only have the portion of their salaries before they turn 40 included in cap hit calculation. Second, if the average value of the three highest seasons is $5.75 million or more, then the value of years 36 through 39 will have a minimum cap "charge" of $1 million.
These changes came shortly after Ilya Kovalchuk
Ilya Kovalchuk
Ilya Valerevich Kovalchuk is a Russian professional ice hockey left winger who is an alternate captain of the New Jersey Devils of the National Hockey League. Drafted first overall in the 2001 NHL Entry Draft by the Atlanta Thrashers, he began his NHL career in 2001–02 with Atlanta and was...
's contract extension with the New Jersey Devils
New Jersey Devils
The New Jersey Devils are a professional ice hockey team based in Newark, New Jersey, United States. They are members of the Atlantic Division of the Eastern Conference of the National Hockey League...
was voided due to "cap circumvention". Other long term contracts such as Marc Savard
Marc Savard
Marc Savard is a Canadian professional ice hockey centre currently under contract to the Boston Bruins of the National Hockey League , but who has not played since late in the season because of post-concussion syndrome...
, Roberto Luongo
Roberto Luongo
Roberto Luongo is a Canadian professional ice hockey goaltender for the Vancouver Canucks of the National Hockey League . Born in Montreal, Quebec, he is of Italian and Irish ancestry. He employs the butterfly style of goaltending...
and Marian Hossa
Marian Hossa
Marián Hossa is a Slovak professional ice hockey player who currently plays for the Chicago Blackhawks of the National Hockey League . Hossa was drafted by the Ottawa Senators in the 1997 NHL Entry Draft; after playing for the Senators, he played for the Atlanta Thrashers, Pittsburgh Penguins, and...
were grandfathered in and their respective cap hits calculated under the old accounting system. However, any long term contracts signed on September 5, 2010 would be subject to the new system.
See also
- NHL Salary CapNHL Salary CapThe NHL Salary Cap is the limit to the total amount of money that National Hockey League teams are allowed to pay their players and uses a "hard" cap, meaning there are no luxury taxes or exemptions....
- Player salaries in the NHL
- Team payrolls in the National Hockey LeagueTeam payrolls in the National Hockey LeagueHere are several tables of National Hockey League team payrolls for each team in the NHL. For simplicity, players traded mid-season are considered to be on the payroll of the team acquiring that player....