July 14th, 2012 — Collective Bargaining Agreement
A bit back this was part of a post of mine:
When the NHL CBA talks eventually become the top news in the hockey world, don’t think for a minute this will be as simple as owners vs players. This will be big market teams vs small, older players vs younger, stars vs role players. Divisions will center around revenue sharing both among teams and with players. Escrow figures and who if anyone will be be exempt from them are a likely topic as well. One of the favorite topics of pundits over the last month or two surrounding the next collective bargaining agreement is if there will or won’t be a one time get buyout period similar to the NBA’s to rid teams of bad contracts. An issue that might or might not come up is Olympic play. With the 2014 Olympics looming, some players will be very eager to represent their country even if the NHL doesn’t formally break for the festivities. Realignment will also end up on the table. I would not be terribly surprised to see ownership pushing for a unilateral right to rearrange divisions and schedule formats.
The proposal leaked last night reminds me forcibly of what I’ve heard called “The Best Buy Model”. When Best Buy did their rapid expansion from a regional chain to the largest electronics brick and mortar store, they did it with high end product, and they paid the best to be the best. Once they hit the top of the food chain, much of that changed. The sales teams lost commissions and their service quality spiraled. Their “Geek Squad” has been accused of multiple acts of misconduct along the way, and there is serious doubt as to the longterm viability of the entire company. Labor quality is inextricably linked to financial well being for companies. When labor is the product that is even more true. Hollywood can’t survive without reasonably able actors, directors and writers, nor can the NHL survive without both star and rank and file players. I don’t take the RDS reported ownership positions as set in stone, merely as ominous.
July 14th, 2012 — Collective Bargaining Agreement
Going over each point there is a lot of ground the owners are failing to notice or simply failing to acknowledge.
Revenue split roll back:
Dropping the cap floor would work far more effectively. Setting it to about 38-40 million and letting the ceiling rise will have a better regulating effect on salaries than just dropping the ceiling with a rollback. Better still, it allows teams more room to pay entry level players and role players like role players. Stars who hit UFA status can be paid 8 to 15 million a year if you you’re not paying third line wingers who play twelve minutes a night four million. Multiple stars. There will be less European talent staying in Europe, and less chance of the KHL or other leagues expanding to North America.
Contract length limits:
Don’t let your general manager give out long contracts. Just like might not allow more than one no movement clause or more than two or three no trade clauses. It’s your team, run it your way. Some players however can be counted on to play well even if they have a “lifetime contract”. I doubt anyone sees Jonathan Toews putting on forty pounds and no longer backchecking if he signs an eight year contract. I don’t think Shea Weber will start showing up to the rink and doing the morning skate with a 40 of Natty Ice if he gets an eight year contract. Are some players slugs? Sure. But offering a contract to any given player isn’t something a team is forced to do. Is there a risk a player will go elsewhere for two more years on deal? Yes of course, but all business is risk. Have the right environment and the type of players who it takes to win will stick to it.
Elimination of signing bonuses:
This is honestly the most silly. For entry level contracts there is a good reason for them. Teenagers have no or limited credit, and buying a house or condo or renting an apartment requires a credit check in most places. If you don’t pass, you don’t buy or rent, or do so at a much higher price. For older players, they should be like NMC’s or long term; given to players who are worth it only.
Flat contracts:
This one is self defeating for owners. It makes trading players who may have been eclipsed by younger players harder. Yes it will allow other teams to sign $100million contracts worth 80 million in the first 5 years and 20 in the last 10 to spend cap dollars and not real dollars, or trade the cap space to other teams, but it allows all thirty teams the same room.
Five Year Entry Level:
This is another one of those things that is self defeating. A player on a three year deal knows every game counts. Telling your aver 18 year old “Yep if you suck this year, in 5 years when you don’t have arbitration we’re gonna hold it against you.” isn’t going to do much to motivate them to improve day over day, week over week, and year over year. It can’t, it won’t. Now, a minimum of two years played full time in the NHL until expiration or three full years in the AHL/ECHL is saner.
Next post on the CBA will be a same middle ground and or counter proposals for the NHLPA.
July 14th, 2012 — Collective Bargaining Agreement
We’ve seen the first set of Ownership demands for the CBA and they are:
- 10 Years until UFA status.
- 5 year entry level contracts instead of the current 3
- No arbitration of contracts instead of arbitration after the second contract
- 46% revenue to the players
- 5 Year maximum on contracts
If this actually represents a hardline or even a near approximation of what the owners really want, this will be trouble. There will be a labor stoppage. The season will not get started on time at best. If the more than 25% of the season is gone before negotiations succeed the league will either be forced to contract or take over three or four additional franchises.
Some of these shouldn’t even be CBA issues. If a team wants to give out lifetime contracts such as Rick Dipietro’s or Sidney Crosby’s, that’s their lookout. If an owner doesn’t want to give out contracts over a certain number of years they should be prepared to accept their players walking. If they want players to stick around that’s pretty simple too: having a winning environment, don’t tolerate idiots at the controls, and don’t be a butthead to your players either in person or via the media.
I’ve spent years in sales, negotiated contracts, hell I’ve written them from scratch and this is silly. Low balling your opposite number is a time honored tradition. But low balling someone and spitting in their faces are two different things. I’m sure the ownership group believes this is a Churchill like pose of defiance and strength, it comes across more like Montgomery Burns or Yosemite Sam.
Did the owners learn nothing from watching the recent NFL labor dispute? The players have more sex appeal, more cache, are better loved, and are the backbone of the product. Fans will side with them. This isn’t the NBA where everyone makes a couple million a year and the biggest danger is having your opponent sweat on you. The NHL players risk their lives and safety every shift. Tyler Seguin, Carey Price and Corey Perry are going to draw much, much more sympathy from fans than Jeremy Jacobs, Geoff Molson, and Henry Samueli, that’s just the way it is.
Before we all panic and start looking for fall entertainment that doesn’t involve NHL hockey, I honestly believe this is just a (completely moronic) opening position.
