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.
Mar 7, 2014, 1:34 AM EST
Ugly start for Vancouver vs. Dallas.
Mar 7, 2014, 1:23 AM EST
Worth staying up late for East Coast hockey fans.
Mar 7, 2014, 12:41 AM EST
He did it with style, too.
Mar 6, 2014, 11:32 PM EST
They might want to stay off of Twitter.
Mar 6, 2014, 10:50 PM EST
He should provide commentary to as many Vancouver games as possible.
Mar 6, 2014, 10:38 PM EST
Jhonas Enroth is making the most of his opportunity, to say the least.
Mar 6, 2014, 10:21 PM EST
This one looks painful.
Mar 6, 2014, 10:06 PM EST
Boston shut them out 3-0 on Thursday.
Mar 6, 2014, 9:56 PM EST
Plenty of talent on the ice for this late one.
Mar 6, 2014, 9:48 PM EST
It’s unclear how severe the injury is.
Mar 6, 2014, 8:30 PM EST
No one will wear No. 5 in Detroit again.
Mar 6, 2014, 7:56 PM EST
Injuries make him a key player instantly with Red Wings.
Mar 6, 2014, 7:46 PM EST
No denying whose team it is now, anyway.
Mar 6, 2014, 6:27 PM EST
He’s expected to line up with Tomas Plekanec and Alex Galchenyuk.
Mar 6, 2014, 5:28 PM EST
Mar 6, 2014, 5:07 PM EST
George McPhee “likes” this.
Mar 6, 2014, 4:51 PM EST
He’s eligible for the Hockey Hall of Fame this year too.
Mar 6, 2014, 4:31 PM EST
High hopes in St. Louis with Ryan Miller between the pipes.
Mar 6, 2014, 3:52 PM EST
All the latest from around the crease…
Mar 6, 2014, 3:51 PM EST
Signed through 2016-17 with a cap hit of $4.5 million.
- Canucks’ Bieksa: ‘If this isn’t rock bottom, I don’t know what is’ 13
- Luongo has Twitter fun at Canucks’ expense 19
- Sabres spoil Callahan’s Lightning debut, Stamkos’ return 1
- Dealing with the Devils: NHL reverses Kovalchuk punishment 47
- Playoff bubble watch — Rangers edition 14
- Video: Emotional day for Martin St. Louis ends in OT loss for Rangers 27
- Video: Caps, Flyers engage in another line brawl 53
- PHT’s 2014 Trade Deadline Tracker 28
- Winners and losers of the 2014 trade deadline 48
- Montreal wins Vanek sweepstakes (Updated) 46
- Canucks trade Luongo to Panthers (93)
- BLOCKBUSTER: Lightning trade St. Louis to Rangers for Callahan (82)
- Sabres send Miller, Ott to Blues for package including Halak, Stewart (74)
- Kings make splash, acquire Gaborik from Columbus (72)
- Report: Canucks want center, top prospect and first-rounder for Kesler (68)