INDEPTH:
NHL LABOUR STRIFE > GLOSSARY
Lingo of the hockey biz Defining
common terms in hockey negotiations.
Accrued Season
any League Year during which a player was on a club's playing roster for 40 (30 if the player is a goalie) or more regular season NHL games. If the player missed games due to a hockey-related injury incurred while on a club's playing roster, those games shall count as games played for purposes of calculating an accrued season but only during the League Year in which the injury occurred and a maximum of one additional season
Agent
a person authorized to act for a player; one entrusted with negotiating a player's contract
Arbitrator
an impartial person authorized to hear and resolve specified disputes related to the Collective Bargaining Agreement between a player and a club
Average League Salary
the League average player salary in any given League Year
Bonus
money paid to an athlete for signing a contract or achieving specified performances during the length of the contract
Canadian Equalization Plan
There are two separate methods of receiving
equalization payments from the League. Each Canadian-based club
must sell 13,000 season tickets or achieve an advertising inventory
set by the League. The plan covers four of the six Canadian franchises:
Ottawa, Calgary, Edmonton and Vancouver. Because they are financially
sound and sell out all home games, Toronto and Montreal are not
eligible. If a franchise meets the 13,000 season ticket total
then the club is entitled to a cash handout, which ranges from
$2.2 M to $2.7M (US). The agreement was extended as of December
2001 through to the end of the current NHL CBA.
[Source: Frank Brown, V.P. Media Relations, NHL]
You can also receive League money by achieving a League percentage
of total marketing revenues from your inventory, e.g. rinkboards
and other advertising. There is no hard date for the teams to
reach the mark -- the League monitors a team's progress.
[Source: Peter Hanlon, Director Communications, Calgary Flames]
Capacity Per Cent
how many tickets are being sold (attendance) verses the actual capacity of the arena
Collective Bargaining Agreement
an arrangement negotiated between the players union and the owners that sets forth the rights and obligations of the players, the teams and the League
Compensatory Draft Selection
a draft pick awarded to a club that loses its draft rights to an unsigned rookie drafted in the first round of the Entry Draft who is again eligible for the Entry Draft or becomes an Unrestricted Free Agent
Compensatory Draft
Selection shall be the same numerical choice in the second round in the Entry Draft immediately following the date the Club loses such rights [ex: if a club cannot sign the third pick in the first round, it will receive the third pick in the second round as compensation.]
Club
a team in the National Hockey League
Cost Certainty
a term used only by NHL Commissioner Gary
Bettman to describe what many feel is a salary cap (particularly
the NHLPA); he describes it as, "knowing what the relationship
between your revenues and expenses will be."
Draft
an organized selection process used by NHL teams for choosing rookie athletes for their rosters
Draft Choice Compensation
the right of any club to receive draft picks from another club to compensate the club for the loss of a restricted free agent
Drag
a set of controls within the CBA created to slow down or curb runaway salaries; it was hoped that these controls on the non-tax issues would be enough to eliminate the need for a cap
Entry Draft
the NHL's annual draft of rookie players
Entry-Level System
the system into which rookies are drafted and play their first contract for a maximum three years under an established salary cap
Free Agent
a player who is under 31 and out of the entry-level system becomes a restricted free agent
Five Per Cent Solution
a proposed a payroll tax of five per cent and gate receipt tax of five per cent on the League's top 16 teams (based on their revenues) put forth by the NHLPA in the 1994 negotiations
Governor
represents the franchise at league meetings and voting situations
Grievance
a dispute between a player and a club or the League concerning individual contract or CBA provisions. Filing a grievance is a legally guaranteed right of the player, so long as the grievance has merit. He cannot be discriminated against for filing a claim.
Hard Cap
a maximum salary dollar figure that cannot be exceeded
Large Market Club
Large market teams, [e.g. New York Rangers,
Toronto Maple Leafs] because they are located in big cities, draw
more fans to their games, attract more viewers to their telecasts
and make more money.
League Year
the period from July 1 of one year through and including June 30 of the following year, or such other one-year period to which the NHL and the NHLPA may agree
Luxury Tax
Like in baseball, this term is commonly
used to refer to a payroll tax, a levy against teams who spend
more than a league limit. However, in previous CBA negotiations,
it often was used in revenue-sharing proposals that combined a
payroll tax with redistribution of profits from regular-season
and playoff gate receipts to small-market teams.
NHLPA
The National Hockey League Players' Association is a labour union whose members are the players of the NHL and whose mandate is to represent their interests to ownership and management. Headquartered in Toronto, the NHLPA has a staff of approximately 50 employees who work in such varied disciplines as labour law, product licensing and community relations.
Performance Bonuses
bonuses individually negotiated by a player for meeting or exceeding certain criteria EX: League Awards such as the Hart, Art Ross, Lady Byng trophies, goals scored, penalty killing, plus minus rating, etc.
Playing Roster
players under contract to a club who, during the NHL regular season or playoffs, are specifically assigned to such club, or who are assigned temporarily to a club in the minors (AHL, ECHL) for conditioning purposes in accordance with the terms of the CBA. During training camp, a player shall be deemed on the club's playing roster only if he had been on the club's roster after the trading deadline in the preceding season on other than an emergency recall basis
Qualifying Offer
an offer made to a restricted free agent by his current club when his contract expires. It is a minimum one-year contract subject to arbitration that preserves the right to match and draft pick compensation. The offer must be 110 per cent of the prior year's salary if the player is earning the League average or less. Players earning more than the League average must be offered 100 per cent of their prior year's salary. If a player is aged 26 or older, the offer is a set amount that is indexed annually, based on the League average salary. (For the first two years of the current CBA it was set at $400,000 and it has gone up since then.)
Restricted Free Agent
a player whose contract has expired but who is still subject to a Right of First Refusal and/or Draft Choice Compensation in favour of his prior club
Revenue Sharing
essentially, the big market teams channelling a percentage of their profits to the small market teams to achieve parity and ensure the survival of the smaller market franchises
Right of First Refusal
the right of a club to retain the services of certain players by matching offers made to those players
Rookie
a player who has never signed a professional contract
Salary Cap
a maximum dollar amount of aggregate compensation that individual teams may pay their players during a specific time period
Small Market Club
These are teams based out of cities with a small population who therefore draw fewer fans to their games. In turn, this hurts revenue and ratings. Ex: Pittsburgh, Calgary, Edmonton, Ottawa, Tampa Bay
Soft Cap
a salary cap of a specific dollar figure, which can be circumvented and exceeded by a team through certain exemptions. (The NBA has a soft cap that allows disabled players exemptions, the Larry Bird rule, rookie exemptions, minimum player salary exemptions)
Two-Way contracts
if a player is up with an NHL team, he gets paid NHL scale; players are paid less if they are demoted to a farm team (there is a capped minor league scale)
Unrestricted Free Agent
a player who has either never signed a contract or whose contract has expired or has been terminated or bought out by a club and who is not subject to any exclusive negotiating rights, right of first refusal or Draft Choice Compensation; or a player who becomes an unrestricted free agent as a result of a club exercising its walkaway rights
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