1/6/13

Pending Approval NHL, NHLPA Reach Framework For New CBA

New York Islander Fan Central | 1/06/2013 06:59:00 AM
NHL, NHLPA Reach Framework For New CBA

"Don Fehr and I are here to tell you that we have reached an agreement on the framework of a new Collective Bargaining Agreement, the details of which need to be put to paper," NHL Commissioner Gary Bettman said. "We have to dot a lot of I's and cross a lot of T's. There is still a lot of work to be done, but the basic framework has been agreed upon. We have to go through a ratification process and the Board of Governors has to approve it from the League side and, obviously, the players have to approve it as well."

NYIFC Comments: 
Again in terms of 2012-13, NYIFC will not be covering games because this is not a legitimate season regardless of the New York Islanders performance on ice. This blog will examine moves that will impact 2013-14.

My hope is Charles Wang, and seven other owners (updated-perhaps only majority needed) turn down any agreement where a CBA begins with huge permanent spending disparities between corporate teams willing to use their personal business to write off red ink for advantages, vs other owners without large corporations who need their NHL investment to be a sustainable business. Most franchises as stand alone businesses cannot spend fifty million dollars much less sixty or seventy million, massively front-loading, with a cap ceiling that will at some point approach one hundred million dollars.

Do I expect eight (perhaps only majority) of owners to reject what Mr Bettman agreed to? No.

This is why the league needed to be shut down last September? 

A system that will now likely include buyouts to correct mistakes which will lead to more overspending?

It's a terrible business model, one designed where there will be a lack of financial competitive balance for many/most franchises that were losing money spending fifty million much less a system now that likely will begin near seventy million.

When the 2004-05 lockout ended there was no front-loading, a system that previously saw 28 million dollars payrolls vs 80m dollar payrolls (with UFA beginning at age 31) become a balanced system with a ceiling at 39m.

This system will begin with a 26 million dollar disparity that will only get worse, with UFA for players in their prime, with front-loading continuing on a large scale, and now buyouts for mistakes to increase the disparity even more. 

It appears Mr Fehr won handily on every issue, giving NHL a permanently broken system like MLB. 


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