Skip to content

Report: “Make Whole” to be discussed today

Nov 7, 2012, 10:56 AM EDT

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. Looking to make the leap: Griffin Reinhart

    Aug 22, 2014, 1:32 PM EDT

    GriffinReinhart Getty Images

    Disappointed with demotion last season, 20-year-old will get another shot in September.

  2. Under Pressure: Garth Snow

    Aug 22, 2014, 12:14 PM EDT

    Garth Snow Getty Images

    Has to get his team on the winning track.

  3. Video: Rangers’ Lundqvist shows off tennis skills

    Aug 22, 2014, 11:15 AM EDT

    Henrik Lundqvist Getty Images

    Helps friend raise awareness at charity event.

  4. Report: Bruins need to make a trade

    Aug 22, 2014, 10:30 AM EDT

    toreykruggetty Getty Images

    Excess of defensemen has GM Peter Chiarelli in a bind.

  5. In praise of John Tavares

    Aug 22, 2014, 10:05 AM EDT

    John Tavares, Kyle Okposo, Chad Johnson AP

    At 23 years old, he’s one of the best players in the NHL.

  6. Sakic on RFA Barrie: ‘I’m confident he’ll be here’

    Aug 22, 2014, 9:00 AM EDT

    Tyson Barrie Getty Images

    He’s the last free agent for the Avs to re-sign.

  7. It’s New York Islanders Day at PHT

    Aug 22, 2014, 8:00 AM EDT

    Travis Hamonic, Kyle Okposo, John Tavares Getty Images

    They came back to the pack hard last season.

  8. Sabres’ Larsson says he’s proven what he can in AHL

    Aug 21, 2014, 11:00 PM EDT

    Johan Larsson Getty Images

    He’ll have a battle to make the NHL next season.

  9. NHLers hold charity games in Slovakia honoring Pavol Demitra

    Aug 21, 2014, 10:00 PM EDT

    Pavol Demitra Getty Images

    He died in the plane crash that killed the Lokomotiv Yaroslavl team in 2011.

  10. McDavid on teams possibly tanking for him: ‘It’s pretty crazy’

    Aug 21, 2014, 9:00 PM EDT

    Connor McDavid Getty Images

    The NHL changed the process for the Draft Lottery on Wednesday.

  11. It’s all on Crosby, Malkin to make it work in Pittsburgh

    Aug 21, 2014, 7:33 PM EDT

    Sidney Crosby, Evgeni Malkin, Matt Niskanen AP

    We know it’s not surprising, but just go along with it.

  12. Sakic on Giguere: ‘His achievements speak for themselves’

    Aug 21, 2014, 6:24 PM EDT

    Jean-Sebastien Giguere AP

    A Stanley Cup and a Conn Smythe in separate years is a nice legacy.

  13. Poll: Who makes up for James Neal’s goals in Pittsburgh?

    Aug 21, 2014, 5:15 PM EDT

    Sidney Crosby, James Neal, Chris Kunitz, Evgeni Malkin AP

    No one scored more Pens goals than he did the past three seasons.

  14. Agent: Bryzgalov ‘loved’ Minnesota, really wants to return

    Aug 21, 2014, 2:39 PM EDT

    LOS ANGELES, CA - MARCH 31: Ilya Bryzgalov #30 of the Minnesota Wild reacts to play during a break in the game against the Los Angeles Kings at Staples Center on March 31, 2014 in Los Angeles, California. The Minnesota Wild won 3-2. Getty Images

    “He has instructed me to do all I can to facilitate a return to the Twin Cities.”

  15. Bertuzzi lawyer: Settlement reached, Moore’s brother ‘does not know what he is talking about’

    Aug 21, 2014, 1:11 PM EDT

    Bertuzzi Moore

    “Nor is he very smart to have made untrue defamatory statements such as these.”

  16. Sounds like San Jose handled stripping Thornton’s captaincy really well

    Aug 21, 2014, 12:32 PM EDT

    Joe Thornton Getty Images

    “I talked with Todd today, and he never mentioned anything about captains or assistant captains.”

  17. Under Pressure: Mike Johnston

    Aug 21, 2014, 11:47 AM EDT

    Mike Johnston, Jim Rutherford, Rick Tocchet AP

    All the first-time NHL head coach has to do is get Pittsburgh to the promised land. No biggie.

Top 10 NHL Player Searches
  1. K. Hayes (2115)
  2. S. Crosby (1974)
  3. R. Johansen (1626)
  4. D. Alfredsson (1523)
  5. J. Giguere (1364)
  1. J. Spezza (1325)
  2. A. Ovechkin (1281)
  3. S. Mason (1214)
  4. I. Kovalchuk (1106)
  5. C. MacArthur (1103)