National Hockey League lockout comes to an end
Fans everywhere of the National Hockey League got a late holiday present on Jan. 6, when the NHL and the NHL Players Association agreed to a new collective bargaining agreement. The new CBA-pending ratification by the NHL Players' Assocation and NHL owners-effectively ends the lockout that has cancelled more than 50 percent of the NHL season.
The NHL season was scheduled to begin Oct. 11 with training camps beginning in early September. What occurred instead was a 116-day lockout that cancelled 625 regular season games, the Winter Classic, and sent many of the game's top players to Europe.
Federal mediators, closed door meetings, and 16-hour sessions appeared to be for naught as the season seemed to be doomed to not take place.
The NHL and the NHLPA had known since mid-July that the two sides were headed for a lockout, when an offer by the NHL was rejected by the NHLPA. The lockout, whose focal point was a dispute over revenues and a salary cap, marks the fifth time the NHL has had a labor dispute in the past 20 years.
In the July offer, the NHL outlined its biggest issues-allocation of revenues and salary caps. The NHL wanted to cut the players' revenue from 57 to 46 percent and limit the salaries to cap at $60 million, while the NHLPA countered with a $67 million cap.
Over the course of negotiations, contract length also took center stage as a hot-button issue and helped kill nearly an entire NHL season.
The two sides finally agreed to a $64.3 million salary cap-the same cap as the 2011-2012 season-and a $44 million dollar salary floor.
The NHLPA agreed to give in on revenue and to split revenue allocations equally with the NHL. However, the NHLPA came out as clear winner in terms of contract length.
Under new CBA rules, a free agent can sign a contract for a maximum of seven years, and a player can renegotiate with their current team to a maximum of eight years. The NHL had wanted a blanket four years across the board, regardless of free agency status. While there were other issues discussed, including player discipline appeals and salary arbitration, these two issues formed the greatest barrier between the two sides and caused months of heartache for fans everywhere.
The NHL Board of Governors ratified the new CBA Jan. 9, and the NHLPA began its ratification process the next day. Should it receive the votes of more than 50 percent of the players, as is expected, its members will be allowed to return to training camps and prepare for a shortened season.
However, the damage done to the NHL's image may be too much to bear. The NHL's revenue only fully recovered last year to where it stood before the 2004-2005 lockout, and was projected to lose well over $300 million from this lockout. Indeed, the externalities from the lockout may prove crippling.
With so many other sporting options available, fringe fans may not return to the NHL when it restarts.
The new CBA will take effect for the next 10 years, however both sides have the option to opt-out after eight if they so choose. Things got so bad that the ultimatum dates set by analysts and the NHL passed without anyone noticing, and most fans had written off this season entirely. However, one last 16-hour negotiation session saved the season and a new deal was announced at 4:45 a.m. on Jan. 6, bringing celebration to hockey fans around the country.
The NHL season, which will consist of only 48 games, is scheduled to begin Jan. 19, with team schedules to be released upon ratification.
Please note All comments are eligible for publication in The Justice.