Late Night Lockout Follies!

Having received a final offer with a salary cap of $42.5 million from the NHL, Bob Goodenow and the NHLPA are making a counteroffer in the form of a public letter (Acrobat Reader required) to the league and Commissioner Gary Bettman:

Dear Gary,

Yesterday afternoon, Bill Daly presented us with an offer from the League that, for the first time, was not linked to League-wide revenues.  We appreciated your willingness to adjust your position and we worked to respond in kind.  By evening, we had fashioned and reached out to you with an offer from the PA that included, for the first time, a team maximum cap.  This offer built upon the 24% rollback and other changes in favour of clubs, which were presented by the Players on December 9, 2004.

As you know, and as Ted told Bill, our offer of a team cap represented a radical step for the PA.  We took this step because we too believe that our sport will be damaged greatly by the cancellation of this season and the continuation of the lockout through next season.

We wish that the NHL had offered a "no linkage" proposal before yesterday so that negotiations in that arena could have commenced sooner. However, we recognize that they did not and we agree that time is short.

In that spirit, and in a final attempt to reach an agreement, we are adjusting our offer of yesterday in two respects  First, we are reducing the maximum individual team cap to $49 million in salary, which does not include the $2.2 million per team in benefits due.

Second, we will adjust our exception provision so that it is available to teams only twice during the six year term and for up to only 10% over the limit of $49 million (to $53.9 million), at the tax rate of 150%. The exception provision is important so that a successful team does not have to arbitrarily dismantle its roster after it has achieved particular success or is in a unique phase of its player roster cycle.

I have attached a short summary of the main deal points discussed by Bill and Ted yesterday, as modified above.

I can be reached at the usual phone numbers.

Regards,

NATIONAL HOCKY LEAGUE
PLAYERS' ASSOCIATION

Robert W. Goodenow
Executive Director & General Counsel

Again, click here to read the letter, as well as the details of the counterproposal.

At times, I've been tough on the NHLPA when it comes to their online communications strategy, but I'm glad to see they were so aggressive here (which they need to be in the face of NHLCBANews). And tactically, it's smart, as the final offer on the table overnight before the 1:00 p.m. U.S. EST press conference will be from the players.

Sure, it might just be a PR move, but that doesn't mean it isn't smart. My guess is that Bettman says no, and goes through with the press conference and cancels the season, just as we all expected.

UPDATE: Vodkafish is with me on this (and thanks for the heads up, Dave).

Some relevant data from Sharkspage:

Using a link I found here, there are 14 out of 30 NHL teams that exceeded the $42.5 million salary cap using last seasons payroll figures.

According to the payroll totals compiled by Hockeyzoneplus, the teams were: Anaheim [54.4], Boston [45.8], Colorado [60.9], Dallas [67.6], Detroit [77.8], Los Angeles [46.1], Montreal [42.7], New Jersey [48.1], NY Islanders [43.8], NY Rangers [77], Philadelphia [65.1], St Louis [61.2], Toronto [61.8], Washington [51.1].

I missed this gem from Jes Golbez from earlier in the day about one player who would be thrilled at the prospect of a shortened season:

Given Brian Savage's penchant for fast starts, I could see him winning the Rocket Richard trophy....ewwwww)

Ah yes, how could we possibly forget the NHL's Mr. October? More later, as reaction pours in.

ANOTHER UPDATE: Tom Benjamin has a somewhat sophisticated take on the basic conflict behind the lockout:

NHL owners operate (or should operate) based on the commercial moral code. Hockey players are guardians who embrace an entirely different system of survival. The bedrock for a commercial system is honesty, while for guardians, loyalty is the key trait. NHL owners belong to one class, hockey players as an occupational group, belong to the other. Both are doing what they see as being right within their moral codes, their system of survival.

John Fontana, who probably comes from the school of thought that thinks Sociology is the science of breaking down doors that are unlocked, has a different take.

LATE NIGHT UPDATE: Dueling letters! First, Da Commish:

Dear Bob:

It was disappointing to receive the fax of your "final" offer.

We would have been prepared to propose and negotiate over a "de-linked" maximum team salary sooner, but the NHLPA had been consistent in stating that the players would never accept a salary cap. We only learned in the mediation process on Sunday that you would entertain such an offer, which is why we asked for a meeting yesterday and made the "de-linked" proposal.

If every team spent to the $49 million level you have proposed, total player compensation would exceed what we spent last season and, assuming for discussion purposes, there was no damage to the game, our player compensation costs would exceed 75% of revenues. We cannot afford your proposal.

Our offer of earlier today was a $75 million increase over the offer we made yesterday. I hope you will accept it, and that we can move forward and negotiate the myriad of other issues that need to be addressed.

Sincerely,

Gary B. Bettman
Commissioner

And in response, the "Notorious Bobby G":

Dear Gary,

This is in reply to your most recent letter.

1.         Your claim that the Clubs “cannot afford” our proposal is based on your hypothetical fear of what would happen “if every team spent to the $49 million level the Players have proposed”.  The notion that “every Club” will spend at the $49 million level is contradicted by years of actual payroll experience under the old CBA system and by Exhibit 12 of your December 14 document (attached for your recollection), in which you projected 24 teams well below the $49 million level after the rollback.  Further, this experience is based on an environment without revenue sharing, taxes on team payrolls and the numerous new system restrictions.

2.         Based on your own calculations from Exhibit 12, over 21 Clubs are spending significantly less than your team payroll limit number of $42.5 million.  I am at a loss to understand how you suggest your offer earlier today represents a $75 million dollar increase when it only impacts the spending of nine teams!

You will receive nothing further from us.

Regards,

NATIONAL HOCKEY LEAGUE
PLAYERS’ ASSOCIATION

Robert W. Goodenow
Executive Director & General Counsel

In other words, "I spit in your general direction!"

That's it for me kiddies, see you tomorrow at the press conference.

Eric 10:18 PM

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