Skip to content

Report: “Make Whole” to be discussed today

Nov 7, 2012, 10:56 AM EST

Fehr and players

CBA negotiations between the NHL and NHLPA are expected to resume sometime later this afternoon in New York, with the focus of the discussions reportedly on the so-called “make whole” provision.

The “make whole” provision was first introduced in mid-October when the league made its 50-50 offer to the union. It was intended to satisfy the players’ demands that all current contracts be paid out in full under a new CBA.

The NHL explained it this way:

The League proposes to make Players “whole” for the absolute reduction in Players’ Share dollars (when compared to 2011/12) that is attributable to the economic terms of the new CBA (the “Share Reduction”). Using an assumed year-over-year growth rate of 5% for League-wide revenues, the new CBA could result in shortfalls from the current level of Players’ Share dollars ($1.883 Billion in 2011/12) of up to $149 million in Year 1 and up to $62 million in Year 2, for which Players will be “made whole.” (By Year 3 of the new CBA, Players’ Share dollars should exceed the current level ($1.883 Billion for 2011/12) and no “make whole” will be required.) Any such “shortfalls” in Years 1 and 2 of the new CBA will be computed as a percentage reduction off of the Player’s stated contractual compensation, and will be repaid to the Player as a Deferred Compensation benefit spread over the remaining future years of the Player’s SPC (or if he has no remaining years, in the year following the expiration of his SPC). Player reimbursement for the Share Reduction will be accrued and paid for by the League, and will be chargeable against Players’ Share amounts in future years as Preliminary Benefits. The objective would be to honor all existing SPCs by restoring their “value” on the basis of the now existing level of Players’ Share dollars.

The problem the players had with the proposal is that future reimbursement was to be chargeable against the players’ share of revenue, meaning players would essentially be paying players to make it work.

Last week, however, it was reported that the league was willing to absorb some or all of the reimbursement. Which brings us to today, when the NHL will presumably explain its plan to the NHLPA.

The Globe and Mail’s James Mirtle has a good breakdown of the “make whole” provision, if you’re a big fan of math.

Latest Posts
  1. Debut delayed? Johnson doubtful, Sabres recall Makarov

    Mar 6, 2015, 5:00 PM EST

    New York Islanders v Buffalo Sabres New York Islanders v Buffalo Sabres

    Meaning Anders Lindback looks to play against Ottawa tonight.

  2. Darryl Sutter was asked about ‘must-win’ games, and his answer was very Darryl Sutter-like

    Mar 6, 2015, 4:00 PM EST

    Darryl Sutter AP

    “There’s no such thing as a ‘must-win.’ Nobody gets locked up or thrown in the ocean or anything like that.”

  3. Slumping Preds lose Nystrom (lower body) for one month

    Mar 6, 2015, 3:13 PM EST

    Detroit Red Wings v Nashville Predators Getty Images

    Gritty forward will miss most of the remainder of the regular season.

  4. One NHL GM thinks it’s ‘ridiculous’ how much ‘heat’ Chiarelli is taking

    Mar 6, 2015, 2:19 PM EST

    Peter Chiarelli AP

    “There’s no question Chiarelli would have a chance to work as soon as he wanted to.”

  5. Goalie nods: Dubnyk to make 23rd straight start

    Mar 6, 2015, 2:03 PM EST

    Colorado Avalanche v Minnesota Wild Getty Images

    News and notes from around the crease…

  6. Voynov trial delayed to late April

    Mar 6, 2015, 1:13 PM EST

    Sasha Voynov Sasha Voynov

    Making it virtually impossible for him to play again this season.

  7. Bettman concedes there are ‘some members of the NHL family who would like to see fewer shootouts’

    Mar 6, 2015, 1:10 PM EST

    Max Pacioretty, Jonathan Quick AP

    However, “We’re not hearing that from fans. Fans like the way the game is.”

  8. Okposo (detached retina) to travel, resume skating with Isles

    Mar 6, 2015, 12:38 PM EST

    Kyle Okposo Getty Images

    It’s likely he’ll take the morning skate on Saturday.

  9. Flyers part ways with goalie coach Reese

    Mar 6, 2015, 12:08 PM EST

    Florida Panthers v Philadelphia Flyers Getty Images

    “It was a mutual agreement between both parties.”

  10. Season over: Avs lose MacKinnon to broken foot

    Mar 6, 2015, 11:43 AM EST

    Nathan MacKinnon Getty Images

    Huge blow to Colorado’s already slim playoff chances.

  11. In Edmonton, Yakupov’s future seems bright again

    Mar 6, 2015, 10:53 AM EST

    Edmonton Oilers v Toronto Maple Leafs Getty Images

    Which is good, considering he’s in the final year of his entry-level deal.

  12. Bruins sign Krug and Smith to contract extensions

    Mar 6, 2015, 9:50 AM EST

    Getty Images

    Both players were scheduled to become restricted free agents after this season.

  13. Stars’ Seguin could return within a week

    Mar 6, 2015, 8:50 AM EST

    Tyler Seguin Tyler Seguin

    He’s been out of the lineup since Feb. 13.

Featured video

Is there an issue with Babcock in Detroit?
Top 10 NHL Player Searches
  1. K. Okposo (3166)
  2. H. Lundqvist (3014)
  3. T. Seguin (2860)
  4. F. Andersen (2429)
  5. M. Giordano (2370)
  1. T. Hall (2319)
  2. H. Zetterberg (2236)
  3. A. Ovechkin (2077)
  4. B. Dubinsky (2026)
  5. P. Sharp (1918)