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INDEPTH:
FACEOFF 2004-05
COLLECTIVE BARGAINING AGREEMENT FAQs
Answering frequently asked questions about
the NHL's new labour deal
CBC Sports Online | Last updated July 22, 2005
TERM
What is the length of the new CBA?
The CBA is six years in duration (through the 2010-11 season) with
the NHLPA having the option to re-open the agreement after year four
(after the 2008-09 season). The NHLPA also has the option of extending
the CBA for an additional year at the end of the term.
PLAYERS' SHARE OF LEAGUE REVENUES
What will be the players' share of league-wide revenues?
The players' share will be 54 per cent to the extent League revenues
in any year are below $2.2 billion US; 55 per cent when league revenues
are between $2.2 billion and $2.4 billion; 56 per cent when league
revenues are between $2.4 billion and $2.7 billion, and 57 per cent
when league revenues in any year exceed $2.7 billion.
CLUB PAYROLLS
What will be the range of club payrolls?
The payroll range in 2005-06 will be $21.5 million at the lower limit
and $39 million at the upper limit. A club's payroll will include
all salaries, signing bonuses and performance bonuses paid to players.
Except in the case of bona fide long-term injury (injuries that sideline
a player for a minimum of 24 days and 10 games) to one or more of
a club’s players, team payrolls will never be permitted to be below
the minimum or in excess of the maximum.
Clubs at or near the upper limit that have players who incur a bona
fide long-term injury will be entitled to replace up to the full value
of the injured player's NHL salary (even if such salary would result
in the club's team salary exceeding the upper limit). The "replacement
salary" will not count against the club's upper limit but will count
against the league-wide players' share. Upon return of the injured
player, the team must come into immediate compliance with the requirements
of the payroll range.
MAXIMUM PLAYER SALARY
Is there a maximum an individual player may earn?
Yes. No player is eligible to receive in excess of 20 per cent of
the club's upper limit in total annual compensation (NHL salary plus
signing, roster, reporting and all performance bonuses). In 2005-06,
no player will be permitted to earn in excess of $7.8 million in any
year of his contract.
MINIMUM PLAYER SALARY
What is the new minimum NHL player salary?
The minimum NHL player salary in 2005-06 and 2006-07 will be $450,000;
$475,000 in 2007-08 and 2008-09; $500,000 in 2009-10 and 2010-11,
and $525,000 in 2011-12 (to the extent the CBA is extended by the
union).
What happens with players who have contracts for 2005-06 for less
than the minimum salary?
The player's contract may be bought out. If the contract is not bought
out, his salary must be increased to the League minimum.
PERFORMANCE BONUSES
What players may earn in performance bonuses?
Performance bonuses will only be permissible for the following types
of players: (1) players on entry-level contracts; (2) players signing
one-year contracts after returning from long-term injuries (players
with 400 or more games who spent 100 or more days on injured reserve
in the last year of their most recent contract); and senior veteran
players who sign a one-year contract after age 35.
EXISTING CONTRACTS
What is the status of existing player contracts?
Every year of every existing NHL player contract (plus signing, roster
and reporting bonuses, performance bonuses, marketing fees and any
and all other payments due under existing contracts) will be reduced
by 24 per cent.
What is the status of 2004-05 player contracts?
All contracts for the 2004-05 season will be deemed eliminated
COMPLIANCE RULES
Will clubs have an opportunity to make off-season adjustments
to their rosters to come into compliance with the new CBA rules?
Yes. Clubs will have a one-time opportunity, during a six-day period
from July 23 to July 29, to exercise buy-outs of existing player contracts.
Amounts paid to players pursuant to these compliance buy-outs will
not be counted against a club's upper limit or the league-wide players'
share. Clubs that choose to exercise compliance buy-outs must pay
the buy-out amount over the remaining term of the contract.
REVENUE SHARING
Will enhanced revenue sharing be part of the new CBA?
Yes. The league has committed to enhanced revenue sharing in an amount
that is necessary to allow all clubs the ability to afford competitive
payrolls within the payroll range.
What clubs will be eligible for revenue-sharing subsidies?
All clubs that: (1) are ranked in the bottom half (bottom 15) in league
revenues, and (2) operate in markets with a demographic market area
of 2.5 million or fewer TV households.
OLYMPICS
Will NHL players compete in the 2006 Olympics in Turin, Italy?
Yes. The NHL and NHLPA have agreed to NHL player participation in
both the 2006 (Turin) and 2010 (Vancouver) Winter Olympics, subject
to negotiation of mutually acceptable terms with the International
Ice Hockey Federation.
FREE AGENCY
How will free agency work?
Unrestricted free agency – For the 2005-06 season, a player aged
31 with four accrued seasons will be an unrestricted free agent; in
2006-07, a player aged 29 with four accrued seasons or with eight
accrued seasons; in 2007-08, a player aged 28 with four accrued seasons
or with seven accrued seasons; beginning in 2008-09 and for the duration
of the agreement, a player aged 27 with four accrued seasons or with
seven accrued seasons will be an unrestricted free agent. For purposes
of qualifying for unrestricted free agency, the 2004-05 cancelled
season will be counted as a year of accrued service.
What happens to a player who was 30 years old and a restricted
free agent at the time the old CBA expired, but who turned 31 on or
before June 30, 2005?
Provided the player has four or more accrued seasons, he will become
an unrestricted free agent on Aug. 1, 2005.
Restricted free agency will continue to operate similarly to how it
has operated under the expired CBA.
SIGNING DEADLINE
What is the latest date players can sign contracts?
Under the expired CBA, there was no signing deadline applicable to
player contracts. Under the new CBA, restricted free agents who do
not sign contracts by Dec. 1 of a given year will be ineligible to
play in the league for the balance of that season.
ENTRY LEVEL PLAYERS
How much can entry-level players make?
Entry-level players will be subject to a maximum annual salary (plus
signing and games played bonuses) of $850,000 for 2005 and 2006 draftees;
$875,000 for 2007 and 2008 draftees; $900,000 for 2009 and 2010; and
$925,000 for 2011 draftees.
The maximum combined signing bonus will be limited to 10 per cent
of the player's maximum annual compensation in any year.
Entry-level players may negotiate for performance bonuses up to a
maximum of $850,000 in individual "Schedule A" bonuses per year (maximum
of $212,500 per bonus). A player may also be eligible to earn individual
"B" bonuses for league-wide excellence, which will, as a general matter,
be paid by the league. In addition, a player will be eligible to negotiate
with his club "excess" individual "B" bonuses, subject to a maximum
aggregate of $2 million in any year.
How long will a player be in the entry-level system?
Players who sign their first contract at age 18 to 21 are required
to sign three-year entry-level contracts; players aged 22 to 23 will
be required to sign two-year deals; and players age 24 will be required
to sign a one-year entry-level contract.
How much can unsigned players from the 2003 and 2004 entry drafts
sign a contract for?
Clubs may sign 2004 draftees to a maximum salary of $984,200 and 2003
draftees to a maximum salary of $942,400. These salaries are based
on a 24 per cent rollback to the maximum salary under the previous
CBA for the players' respective draft years. Additionally, draftees
from prior years may negotiate for a signing bonus not to exceed 30
per cent of his maximum annual compensation. Performance bonuses may
be negotiated as per new CBA rules.
ENTRY DRAFT
How many rounds in the entry draft?
The entry draft will be reduced from nine rounds to seven rounds.
Will compensatory draft picks still exist?
Yes. Clubs that lost a Group 3 free agent to another club between
July 1 and Sept. 15, 2004 will be eligible to receive a compensatory
draft choice in the 2005 entry draft slotted on the same basis as
under the expired CBA. Going forward, clubs will no longer receive
compensatory draft choices for the loss of unrestricted free agents
but will receive such choices for the loss of unsigned first-round
draft picks.
Who is eligible for selection in the Entry Draft?
Draft eligibility rules will remain unchanged from the expired CBA
(all players must be age 18 by Sept. 15 in the year in which the draft
is held).
Will players still have to opt-in to draft?
No. The draft "opt-in" procedure has been eliminated.
SALARY ARBITRATION
Who will be eligible for salary arbitration?
As a general matter, players will be eligible for salary arbitration
after four years in the league instead of three. For the first time,
clubs also will have the right to elect salary arbitration with respect
to two categories of players. For players who are earning more than
$1.5 million in their prior year, clubs will have the right to elect
salary arbitration in lieu of making a qualifying offer. Clubs also
will have the right to elect salary arbitration with respect to other
Group 2 players who chose not to take the club to arbitration.
QUALIFYING OFFERS
How will qualifying offers work?
Players earning $660,000 or less will be entitled to qualifying offers
at 110 per cent of their prior year's salary; players earning more
than $660,000 and up to $1 million will be entitled to qualifying
offers at 105 per cent of the prior year's salary; players earning
more than $1 million will be entitled to qualifying offers at 100
per cent of their prior year's salary.
RENEGOTIATION OF CONTRACTS
Will clubs be able to renegotiate contracts with players?
No. Player contracts will not be renegotiated (upward or downward)
during their term. Extensions may be negotiated but only in the final
year of the contract and only if such extension is for an amount that
can be accommodated in a club's upper limit for the current year or
as computed for future years.
REGULAR-SEASON SCHEDULE
What will the regular-season schedule look like?
The length of the regular season will be a minimum of 184 days, with
each club playing at least one game in the first three days and last
three days of the regular season. The length of the regular-season
schedule will remain at 82 games.
TRAINING CAMP
How long will training camp be?
For veteran players (50 games or more in the previous season), training
camp will not exceed 20 days. For all other players, training camp
will be not more than 27 days. (For the 2005-06 season only, the duration
of training camp will be extended to 23 days for veteran players and
not more than 30 days for all other players.)
What is the maximum number of pre-season games that may be scheduled
for any team?
The maximum number of pre-season games remains at nine.
PARTNERSHIP COMMITTEES
What joint committees and commitments have been established?
The parties have agreed to the establishment of a joint owner-player
competition committee to discuss and make recommendations on matters
affecting the game and the way the game is played.
The parties have agreed to a joint broadcasting/marketing committee
to discuss league broadcast and marketing policies and initiatives.
The parties have agreed to a joint emergency assistance fund administration
committee to oversee the use of funds for retired players.
WAIVER DRAFT
Will there continue to be a waiver draft?
The CBA does not provide for the continuation of the waiver draft.
TRADE DEADLINE
Has the date of the trade deadline been moved?
Yes. The trade deadline will be moved from the 26th day to the 40th
day immediately preceding the final day of the regular season.
PERFORMANCE-ENHANCING SUBSTANCES PROGRAM
Does the CBA address the use of performance-enhancing substances?
Yes. Per the agreement, every NHL player will be subject to up to
two "no-notice" tests every year, with at least one such
test to be conducted on a team-wide basis.
Positive tests for performance-enhancing substances will result in
a mandatory discipline as follows:
For the first positive test, a 20-game suspension without pay and
a mandatory referral to the league's substance abuse/behavioral health
program for evaluation, education and possible treatment.
For the second positive test, a 60-game suspension without pay.
For the third positive test, a minimum two-year suspension. This suspension
will be considered "permanent," although a player so suspended
may apply for reinstatement after two years.
A joint NHL/NHLPA Committee on performance-enhancing substances also
will agree on a prohibited substances list. The list will include
performance-enhancing substances on the list maintained by the World
Anti-Doping Agency (WADA) for both in-competition and out-of-competition
testing.
ESCROW
How does escrow work?
The determination of the percentage of player salaries withheld for
purposes of funding the player salary escrow will be determined at
four separate points during the season. The percentage withhold will
be adjusted as necessary to reflect overall league-wide payroll at
the time of the various evaluation points, with the intention being
to ensure that sufficient monies will be available at the end of the
league year to repay the league in the event of any overpay on the
league-wide players' share.
LUXURY TAX
Is there a luxury tax in the new CBA?
No.
SUMMER 2005
How long does a club have to exercise a compliance buyout?
There will be a six-day period commencing on July 23, 2005 and ending
at 5:00 p.m. ET on July 29, 2005 during which teams may terminate
and buy out player contracts.
Can such a player, who is bought out pursuant to this procedure,
be re-signed by the club that bought him out?
A player that has been bought out during the compliance buy-out period
cannot rejoin his old Club during the 2005-06 season.
When does the period for free agency begin?
The free agency period will begin on Aug. 1, 2005.
courtesy the NHL
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