Skip to content

Report: NHLPA, Isles at odds over cable TV money

Nov 4, 2013, 3:31 PM EDT

Charles Wang Getty Images

Under the current CBA, NHL players are supposed to receive 50 percent of hockey-related revenues, with the owners getting the other half. Occasionally, however, the two sides can’t agree how to add up the revenue. Such is the case, apparently, when it comes to the New York Islanders and their cable TV deal.

From Forbes:

When Charles Wang bought the Islanders in 2000 for $187 million, $30 million of the purchase price was allocated to the team’s lucrative cable television contract, which belongs to MSG. The disagreement between the Islanders and the NHLPA is how the amortization (non-cash expense) should be treated when counting the team’s revenue for purposes of calculating the league’s salary cap. This season players are entitled to 50% of hockey-related revenue, according to the collective bargaining agreement between the players and owners that took effect last season.

Based the CBA, the Islanders claim they should be allowed to reduce their annual revenue by the amount of the annual amortization of the cable contract (a few million dollars a year). The NHLPA believes the Islanders should not be able to lower their revenue–and thus the amount of revenue that the players are entitled to–with a paper expense because the team is getting the full amount of the cable fee (over $20 million this season).

Again, this happens from time to time. For example, with the $25 million payment the Phoenix Coyotes received from the City of Glendale during the 2010-11 season. The union wanted that counted as HRR; the NHL didn’t. That dispute went to arbitration, according to the Globe and Mail.

As for this case, sources tell Forbes the Isles are likely to prevail.

We’re sure you can’t wait to find out for real.

Latest Posts
  1. Video: ‘I got bumped the whole game,’ says Crawford

    May 22, 2015, 1:30 AM EDT

    Getty Images

    Ducks trying to make life miserable for Chicago’s goalie.

  2. Bylsma free to pursue any coaching gig, says Rutherford

    May 21, 2015, 7:49 PM EDT

    Bylsma

    Pittsburgh GM won’t stand in the way.

  3. Sabres GM Murray lauds ‘great’ process with Babcock, confirms no deal ever in place

    May 21, 2015, 6:10 PM EDT

    Tim Murray AP

    “To have a guy of his ilk, considered one of the best coaches in the National Hockey League, taking a real good hard look at us in Buffalo after a 30th-place finish — I thought the process was great.”

  4. B’s sign Finnish forward Kemppainen to one-year, $700K deal

    May 21, 2015, 5:26 PM EDT

    Joonas Kemppainen, Jan Laco Getty Images

    Two-way contract for Karpat’s playoff scoring sensation.

  5. Will Hitch be back? Blues still ‘going through the process’

    May 21, 2015, 4:15 PM EDT

    Ken Hitchcock AP

    “It’s something that we’re working on everyday. We’re trying to do it behind closed doors and away from public scrutiny.”

  6. Milbury’s ‘tongue-in-cheek’ remarks about Perry discussed, says NBC exec (Video)

    May 21, 2015, 4:02 PM EDT

    Mike Milbury

    “Word choice matters, even when attempting to be humorous.”

  7. Report: Sabres get permission to interview Bylsma

    May 21, 2015, 2:44 PM EDT

    Dan Bylsma AP

    As many as six new head coaches could still be named.

  8. Versteeg ‘wants to play in the worst way’

    May 21, 2015, 1:46 PM EDT

    Nashville Predators v Chicago Blackhawks - Game Six Nashville Predators v Chicago Blackhawks - Game Six

    Some have wondered if he could replace goal-less Bryan Bickell.

  9. Babcock predicts ‘pain’ for Leafs, who are a ‘massive, massive challenge’

    May 21, 2015, 12:43 PM EDT

    Mike Babcock Mike Babcock

    “We need to create a safe environment for the players.”

Featured video

Babcock has his work cut out in Toronto
Top 10 NHL Player Searches
  1. B. Boyle (1379)
  2. K. Versteeg (1359)
  3. R. Callahan (1345)
  4. H. Lundqvist (1281)
  5. P. Kane (1271)