Nov 7, 2012, 10:56 AM EST
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 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.
Nov 28, 2014, 1:08 PM EST
Semyon Varlamov was brilliant last season, but not so much this season.
Nov 28, 2014, 12:08 PM EST
Rivals meet for the second time this season.
Nov 28, 2014, 11:37 AM EST
“And I say that with all due respect to the players we have.”
Nov 28, 2014, 11:35 AM EST
Nov 28, 2014, 11:22 AM EST
After missing the last 11 games with a separated shoulder.
Nov 28, 2014, 11:19 AM EST
“Need a little more traffic, need second efforts.”
Nov 28, 2014, 11:01 AM EST
Former King, Devil and ‘Cane joins HC Lokomotiv.
Nov 28, 2014, 10:45 AM EST
Eat some leftovers and watch some quality afternoon hockey.
Nov 28, 2014, 9:50 AM EST
He could return in about a week if things progress well.
Nov 28, 2014, 8:59 AM EST
Some numbers behind Nashville’s hot start.
Nov 28, 2014, 8:14 AM EST
Friday’s list of link savings.
Nov 28, 2014, 1:35 AM EST
Has appeared in five games with Chicago this season.
Nov 28, 2014, 12:15 AM EST
Forsberg scores the OT winner.
Nov 27, 2014, 10:50 PM EST
Shea Weber covered the puck in the crease.
Nov 27, 2014, 10:35 PM EST
Flyers play host to the Rangers Friday afternoon.
Nov 27, 2014, 9:30 PM EST
Was a healthy scratch in nine games.
Nov 27, 2014, 8:30 PM EST
X-rays on knee cap came back negative.
Nov 27, 2014, 7:30 PM EST
Struggled in the American Hockey League this season.
Nov 27, 2014, 6:30 PM EST
Expected to formally announce his retirement next Thursday morning.
Nov 27, 2014, 5:15 PM EST
Talented center would be a prized pickup at the deadline.
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