The ultimate round of bargaining between the NHL and NHLPA will continue this weekend as the players craft a counter-proposal to the league’s latest offer, presented to the union late Thursday.
The parties will conduct a conference call today in anticipation of a meeting in Manhattan tomorrow, with these give-and-takes critical to saving a 2012-13 season of between 48 and 52 games that would begin no later than Jan. 19.
The NHL’s Canceler-in-Chief Gary Bettman, under pressure in the form of phone calls from big-market owners — including the Rangers’ James Dolan, multiple sources report — to resurrect bargaining the league abandoned three weeks ago, made modest adjustments to the previous offer regarding, most notably, contract term limits for free agents changing teams; salary variance within contracts; and amnesty buyouts.
The league, though, is still proposing a $60.2 million cap for 2013-14 that represents a drop of 14.53 percent from this year’s $70.2 million compliance figure and would all but certainly result in the players’ assuming double-digit escrow losses next year, even including make-whole payments.
A cap of $60 million next season would both put a squeeze on the approximately 250 players whose contracts are due to expire over the summer while minimizing their choices as unrestricted free agents.
The union is expected to propose a higher 2013-14 cap in the transition to 50/50, perhaps $65M, plus a cap on escrow losses.
The league’s proposed single buyout per team that would count against the players’ share, but not against individual club caps, would provide some, but not substantial relief to those clubs hard up against next year’s reduced cap.
Given the league’s plan to charge cap hits on amounts above $625,000 for AHL players on one-way contracts, the Rangers would use the amnesty buyout on Wade Redden, who has two years at $10 million remaining on his deal.
The NHL’s amended proposal increases contract limits for unrestricted free agents from five years to six years, while retaining a seven-year maximum for players resigning with their clubs. The annual variance allowance would increase from five percent to 10 percent, with the number based on the amount of the first year’s salary; e.g. a player receiving $10 million the first year could have his salary adjusted downward by $1 million per season.
There are approximately 10 days in which to maneuver, and two weeks to gain a ratified agreement. Regardless of posturing, the league’s proposal is open to negotiation. The players will have to calculate not whether a better deal might be available in a week or so, but whether a more equitable deal would be available over the summer weighed against the losses of a canceled season.
A 48-game season would allow the players to earn a pro-rated 58.5-percent of their 2012-13 pay, before escrow.
NHL officials are pondering a flip of conferences for the Blue Jackets and Jets for this season only, for what would be an in-conference only schedule. League realignment is a pending issue.