Report: NHL, NHLPA agree on cap formula
TSN.ca Staff with CP, Globe and Mail files
6/8/2005 2:06:13 PM
The Globe and Mail reports that the NHL and NHL Players’ Association have agreed on a formula for a salary-cap system based on team-by-team revenue.
The salary-cap issue was seen as the biggest hurdle in talks for a new collective bargaining agreement.
According to the Globe’s league and player sources, a salary floor and cap will based on a percentage of each NHL team’s revenue. The paper adds that in the first year – based on revenue projections by both sides – the salary cap will range from $34 million to $36 million US, with the floor from $22 million to $24 million US.
The Globe also reports that the formula calls for a dollar-for-dollar luxury tax to kick in at the halfway mark between the floor and the cap. If the floor of the lowest team is $22 million US and the cap on the highest team is $36 million US, then the ‘tax level’ will be $29 million US.
The formula would allow wealthier teams to spend a bit more money, but would also bridge the large gaps in spending between higher payroll teams and lower payroll teams.
Small group labour talks between both sides ended late Tuesday night and resume today in New York with a larger group meeting.
Both sides have carried over the momentum from last week when 34 hours of talks were described as ‘progressive’ from both sides.
There are several issues to iron out, but sources in both camps believe there’s a chance a deal could be done before July. Still, both sides also concede there are potential pitfalls that could prevent an agreement from being reached.
Today’s session is the 21st meeting between the two sides since the season was cancelled Feb. 16.
NHL vice-president and chief legal officer Bill Daly and NHLPA senior director Ted Saskin declined to confirm or deny anything to The Globe and Mail.
Files from CP and The Globe and Mail were used for this report.
Bob Goodenow is a damn fool. I wanna see how quickly he gets the axe after these negotiations end. They could’ve agreed to the $42 million in January and we’d have had ourselves something to watch.