League, union reject proposals
TSN/Canadian Press
12/14/2004
TORONTO (CP) - NHL labour talks were derailed Tuesday after each side rejected the other's proposal.
The talks lasted about 3 1/2 hours. The league made a one-hour presentation on its counter-proposal, which included a salary cap. The NHL Players' Association asked for a caucus, which lasted 2 1/2 hours, before returning to end the meeting.
There are no future talks planned at this time to end the NHL lockout, which including Tuesday night has wiped out 414 games. And if anything, the gap seemed to widen after Tuesday's get-together.
A salary cap, linking cost to revenue, appears to be the main stumbling block. The league calls it a "salary range," saying it proposes to give 54 per cent of its revenues to the players.
"My hope is that the union leadership recognizes that the owners' resolve is great," commissioner Gary Bettman told a news conference. "We only know of really one approach to meaningfully address and fix our problems. And unless somebody can miraculously come up with another approach, which I am highly skeptical of but always anxious to listen, we're committed to fixing this the right way.
"And that means we need to forge an economic partnership. We need to be together - teams and players, league and union - working together to grow this game and I don't think there's any substitute for that.
"And the sooner union leadership and the players realise that, the sooner we can move forward. Because quite frankly as we stay out, the longer this work stoppage goes on, it's only going to get worse. It's not going to get easier."
The league counter-offer contained what Bettman called a "salary range, which, based on last year's economics, would see team player costs between $38.6 million and $34.6 million (US)," the commissioner added.
Asked why he thinks the NHLPA might change its position that it won't accept a salary cap or something that links costs and revenue, the commissioner said: "Well, work stoppages are historically about changing expectations.
"We've got a problem and we've got to fix it. And at some point the players and the union are going to have to decide that they're going to be part of the solution. That's what it's going to take to get us playing."
The players have offered a luxury tax as a form of salary-drag, forcing clubs who spend freely to pay a penalty. The NHL has consistently reflected that.
"We have no interest in a luxury tax at any level at any threshhold," Bettman said dismissively.
NHLPA executive director Bob Goodenow scheduled a news conference for later Tuesday.
The day started, as expected, with the NHL rejecting the union's proposal, which included a one-time 24 per cent rollback on existing player contracts.
"The unanimous conclusion was the union's proposal does not work," Bettman said. "It is dramatic in its immediate, short-term impact, but is fatally flawed as a system going forward."
Instead, the league offered a revised rollback offer, proposing a graduated scale.
Players making less than $800,000 would not see their salary diminished at all. Players making more would give back graduated amounts depending on their pay, with the top-level players making $5 million or more giving 35 per cent back from their existing contract.
The league said its proposal would mean 731 players - or 91.8 per cent - would be at or below the union's proposed 24 per cent.
Despite Tuesday's rejections, Bettman insisted that the two side were not that far apart.
"The union's offer of the rollback was a great start. Now, let's get together and fix the system the right way," he said.
"If you accept everything the union says will result from their proposal, the players will receive 56.6 per cent of our revenues on Day 1 of a new agreement ... We countered at 54 per cent."
Bettman's right-hand man also looked for positives.
"We'll keep working at it," said Bill Daly, the NHL's executive vice-president and chief legal officer. "It's hard to draw any conclusions from this meeting other than we're still not any closer to a resolution."
Goodenow arrived to meet Bettman just before 1 p.m. at the NHL offices. He was flanked by association executive president Trevor Linden and executive members Daniel Alfredsson, Bill Guerin, Bob Boughner, Trent Klatt, Arturs Irbe and Vince Damphousse.
There seemed little suspense going into the meeting after a league memo, obtained by TSN, surfaced Monday with the news that the league had rejected the union's recent offer.
Bettman later told reporters that the league had no part in leaking the memo.
The leak also came on the heels of criticism of the union offer from the ownership of the Edmonton Oilers and Ottawa Senators.
The NHLPA, meanwhile, reiterated that its proposal does change hockey's economic landscape.
NHLPA senior director Ted Saskin said the 24 per cent rollback on existing contracts will result in savings of more than $500 million, with another $500 million coming from other proposed changes.
Last week's talks, when the union tabled its proposal, lasted about four hours.
Cheers,
Aquaman