Dreger: New NHL proposal reduces financial demands Staff

8/29/2012 11:11:59 AM

While the National Hockey League and the NHL Players' Association work to hammer out a new collective bargaining agreement before the September 15 deadline, details have emerged in regards to the league's most recent proposal that was tabled on Tuesday.

According to TSN Hockey Insider Darren Dreger, the basis of NHL's latest proposal is to reduce the league's financial demands - believed to be approximately $460 million in the league's first proposal - overall, including a $120 million reduction in its Year One demands.

The latest proposal is for a six-year term on the new CBA.

The first three years would come in at fixed, pre-negotiated players' share dollar thresholds: 11 per cent, 8.5 per cent and 5.5 per cent less than the 2011-12 totals in the first three years respectively.

The players would also get a share in "upside hockey-related revenue growth" of over 10 per cent in each of the first three years.

For the final three years of the deal the league and players split revenues 50-50.

The players' share percentages under the league's new definition of hockey-related revenues would be gradually reduced over the course of the six-year deal.

The 2012-13 season would see the players receive a 51.6 per cent cut. In 2013-14 that total would drop to 50.5 per cent, before further dipping to 49.6 per cent in 2014-15.

For the following three seasons (2015-16 through 2017-18) the players would see an even 50 per cent.

The salary cap would see an immediate reduction followed by a gradual rise over the course of the deal.

The cap for 2012-13 - projected to be $70.2 million under the existing CBA - would be cut to a fixed $58 million under the latest proposal.

That number would rise to a fixed $60 million in 2013-14 and then to a fixed $62 million the following year.

Projected cap numbers for the final three years of the deal include: $64.2 million in 2015-16, $67.6 million in 2016-17 and $71.1 million in 2017-18.

The league's proposal did not include an across-the-board reduction (or "rollback") to existing contract values. Necessary adjustments would be financed entirely from a combination of modified contracting practices, increases in league-wide revenue and from the players' Escrow contributions.