Nhl Lockout

Topics: National Hockey League, Gary Bettman, 2004–05 NHL lockout Pages: 4 (1601 words) Published: February 18, 2007
NHL's lockout

September 16, 2004 the National Hockey League had a labour dispute that led to a lockout. The dispute was about the end of the collective bargaining agreement (CBA). The National Football League has a working salary cap for the teams in their league. NHL is trying to establish the same type of system that the NFL has. The negotiation between the NHL Players association and the NHL did not come easy. The disagreements were that NHL clubs spent too much on player's salary. The clubs spent over 76 percent of their revenue on the players. With the salary cap the NHL was trying to instill, players felt that the idea was unfair and inflexible. The players didn't want to cut their salaries. The fact is that the NHL commissioner Gary Bettman and the league are having problems keeping clubs out of the negatives in revenue. NHL Players Association (NHLPA) is negotiating with the league on concepts to achieve cost certainty. Some of the options were to have a luxury tax like the one baseball leagues used in North America. The problem with that is that it would not help the league get out of debt. Salary caps, like the one used in the NFL and MLS, were also brought forth to the table but the NHLPA felt that it was to unfair and would not satisfied the salary of the players. "NHLPA's executive director Bob Goodenow disputed the leagues financial claims. According to the union, ‘cost certainty' is little more than a euphemism for a salary cap, which it had vowed never to accept." (Wiki)

The critical issues are what kind of agreement the league and the NHLPA going to reach once the labour contract is over and how long the lockout would be? Long lockouts would lead to critical lost in revenue. Like in 2002-03 when "North American sports – and collectively lost 273 million dollars" (Wiki). Which one of the salary caps are the commissioner and the NHLPA going to agree on was another big problem. NHLPA wanted to keep a "marketplace" system that...
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