The collective bargaining agreement of the NHL is set to expire on September 15, 2026. The fact that talks on a new contract are scheduled to start in early 2025 is already a step forward of hockey’s previous position in labor talks.
Earlier this week, Commissioner Gary Bettman stated that he anticipates negotiations with the NHL Players Association to start in February, around the time that interested parties gather for the 4 Nations Face-Off, which is the most recent instance of cooperation in the sport. In a sport that has seen three labor stoppages in the last thirty years, there is cause for hope given the league’s direction and the close working relationship between Bettman and union executive director Marty Walshme. Both parties have concerns to discuss and reforms they would want to see.
In order to determine the issues that are most important to his membership of over 700 players, Bettman is currently canvassing owners and general managers.
There is already an agreement in place to send NHL players to the Olympics in 2026 and 2030, and the salary cap system and 50/50 revenue share that have been in place are unlikely to alter. There are still a few subjects to cover.
What are the problems?
Owners and players have refocused their efforts on increasing the revenue available to everyone after earlier discussions focused on how to divide the funds.Thanks to new U.S. broadcast rights agreements, one of which will arrive in Canada on 26th, as well as new revenue streams like the 4 Nations tournament, jersey and helmet ads, and a number of sponsorship partnerships, revenues are breaking records every season.
Of course, there are still disagreements.
All expansion costs, including $500 million when Vegas joined and $650 million from Seattle, have gone to the owners. Although Bettman has stated that there are currently no plans to grow the number of teams to 32, it is well known that ownership groups in Atlanta and other places are interested. Whether or not this qualifies as hockey-related money that is distributed to players could be a topic of discussion.
The cap on salaries
The pay cap is based on hockey-related revenue, which includes ticket sales, TV revenue, and more. The cap for each team is currently $88 million, with $92.5 million anticipated for the upcoming season after staying unchanged and barely rising during the pandemic.
There is discussion about whether players want to demand a speedier cap hike, which would raise compensation for players throughout the league, now that more money is flowing in.
In Boston on Sunday, Bettman remarked, “I like smooth and steady.” We’re not even close to having a meaningful conversation about that, so when I say “smooth and steady,” it doesn’t imply I have any specific figures in mind or that the cap couldn’t theoretically increase more quickly.
Walsh claimed that because it makes everyone feel better, athletes would adore seeing the cap rise.
Walsh stated, “It’s not just talking about the top, marquee players.” It discusses how there will be chances for all other players to grow as well. And I believe that raising the cap is crucial for both revenue and the cap itself.
To balance the 50/50 share, the 2020 CBA extension placed limits on the amount of escrow withheld from players’ paychecks. As the debate heats up, something along those lines is anticipated to continue.
Trevor van Riemsdyk, the alternate player representative for the Washington Capitals, stated on Monday that it’s simply a matter of determining what matters to you and what you would like to change. The difficult part of all of this is that not everyone is in the same situation. You will desire different things because some guys are looking to get fresh deals, while others are in the middle of long-term agreements.
Among the changes sought from a league standpoint are the long-term injured reserve regulations and the amount of money teams are spending above the cap. The union side may raise issues like player pensions, health care, who has the last say in surgeries, and the schedule, which includes hockey until late June and a lengthy preseason.
Why so optimistic?
Like other professional leagues, the NHL has had labor stoppages in the past. A whole season was lost due to the 2004–05 lockout, and negotiations in 2012–13 delayed the start date until January.
That kind of problems is difficult to imagine this time. Some have speculated that a new agreement could be reached by late spring or early summer, more than a year before the deadline, as a result of the early start.
Walsh, a former federal labor secretary and, prior to that, mayor of Boston, has a very intelligent, professional approach and recognizes that everyone performs better when working together, according to Bettman.
That doesn’t mean you don’t fight hard for your constituents, but you choose what matters and where you can collaborate, which is what you should do for the larger good, Bettman added. I’ve never seen someone get that as well as he does.
Walsh will be negotiating a CBA for the first time. The union’s executive director for the 2012–13 and 2020 negotiations was Don Fehr, who is well-known for having led the Major League Baseball Players Association for a long time. Bob Goodenow served as the union’s executive director from 2004–05.
According to van Riemsdyk, Marty has a great deal of expertise dealing with unions. He is a tough person who worked in Boston, and we have complete faith in him to convey to the owners what matters most to the players.
Bettman has cautioned against establishing any kind of arbitrary deadline for a new contract, and Walsh stated that hockey has been in a transitional phase that is sufficiently removed from negotiating negotiations to not be a daily priority.
With business thriving around it and the caliber of the games played on the ice, the NHL is also in a strong position. Stopping that momentum does not help anyone.
According to Walsh, you’ve likely had the best gate year, the best financial year, and one of the best, if not the best, TV years in terms of viewership. Getting involved in collective bargaining is a smart move.
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Ken Powtak, a Boston-based freelance reporter for the AP, contributed.
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