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QUOTE
Q: Who won?
A: The owners said they needed to fix hockey’s business model. A salary cap was the only option the owners would agree to, so the players were forced to give in on that front. Players negotiated some gains, such as in free agency, but clearly the owners fought hard to change the financial structure and got their way.
Q: No other professional league has lost a full season. Can the league rebound?
A: It remains to be seen whether the sport can regain its fans and popularity. Many teams are expected to offer deals in hopes of winning back fans. The Ducks announced June 20 they had reduced season-ticket prices on more than 14,000 seats by an average of 5.28 percent. Prices will remain the same for the 2006-07 season.
Q: When does the deal become official?
A: Players are expected to vote on the contract Tuesday or Wednesday. The owners will send representatives to New York to review and vote on the contract, likely July 21.
Q: What’s the salary cap?
A: A hard team-by-team cap of about $21 million to $39 million (in the first year), which includes players salaries, benefits and insurance. The union rejected a $42.5 million cap in February.
Q: How will the players be affected?
A: Players with existing contracts will roll back their salaries 24 percent. No player can earn more than 20 percent of the team cap, which for 2005-06 means no player can earn more than $7.4.million.
Q: Are salaries tied to revenue?
A: Yes. The league’s total expense for player costs (salaries, bonuses, benefits and insurance) cannot exceed 54 percent of revenue. The salary cap and payroll range will move up or down as revenue increases or decreases each year. No one knows the impact of the strike. In 2003-04 the league generated $2.1 billion in revenue. The goal for this season is $1.8 billion.
Q: What if revenue falls short of projections?
A: The players will put a percentage of their salaries into an escrow account. If the NHL doesn’t generate the $1.8 billion in revenue, the players forfeit that money. The players will receive the money if the league makes the revenue projections. If revenue increases, the players would benefit.
Q: Is free agency changed?
A: The players gained some ground here. Eligibility for unrestricted free agency is at age 31 in 2005, age 29 in 2006, 28 in 2007. In 2008, it will be 27 or seven years of NHL tenure.
Q: Should we expect a lot of player movement before the season begins?
A: Teams aren’t sure how the rosters will sort out. Many teams are well above the salary cap and will be forced to release players. The Ducks, for example, have eight players under contract for next season at about $20 million (after the 24 percent salary rollback). That means they will have less than $19 million to sign the remaining players.
Q: What happens to a player who signed a three-year contract before the lockout?
A: It’s now a two-year contract minus the 24 percent rollback.
Q: What about salary disputes?
A: The deal includes a two-way salary arbitration, which means players and owners can opt for arbitration. Before only players had those rights. This will allow owners to cut salaries of underperforming players.
Q: Will the teams have the same profitability?
A: There is a revenue-sharing stipulation, where the top 10 money-making clubs donate to a fund shared by the bottom 10 teams.
Q: When can we expect to see hockey again?
A: The season is expected to begin the first week of October. Teams will begin training camps the second week of September. There will be an 18-day shutdown in February for the 2006 Olympics in Turin, Italy. There will not be an All-Star Game in 2006.
Q: When can I buy tickets?
A: The season schedule will be released after the agreement has been ratified, which is expected late next week. Individual game tickets are not available until after that. The Ducks are accepting new season-ticket deposits, and the renewal process is under way for current season-ticket holders. The Kings are accepting deposits for season tickets.
Q: What’s the status of the TV contracts?
A: The NHL has an agreement with NBC to split advertising revenue. NBC will broadcast games on seven Saturdays starting in January. The network will show six playoff games and Games 3-7 of the Stanley Cup Finals in prime time. ESPN’s vice president of programming and production, Mark Shapiro, said the network would be willing to listen to new proposals from the league. “We’ve had a very good, long-term relationship with the NHL, and we’re always open to listening to potential scenarios that have us both equally sharing any risk,” Shapiro said.
A: The owners said they needed to fix hockey’s business model. A salary cap was the only option the owners would agree to, so the players were forced to give in on that front. Players negotiated some gains, such as in free agency, but clearly the owners fought hard to change the financial structure and got their way.
Q: No other professional league has lost a full season. Can the league rebound?
A: It remains to be seen whether the sport can regain its fans and popularity. Many teams are expected to offer deals in hopes of winning back fans. The Ducks announced June 20 they had reduced season-ticket prices on more than 14,000 seats by an average of 5.28 percent. Prices will remain the same for the 2006-07 season.
Q: When does the deal become official?
A: Players are expected to vote on the contract Tuesday or Wednesday. The owners will send representatives to New York to review and vote on the contract, likely July 21.
Q: What’s the salary cap?
A: A hard team-by-team cap of about $21 million to $39 million (in the first year), which includes players salaries, benefits and insurance. The union rejected a $42.5 million cap in February.
Q: How will the players be affected?
A: Players with existing contracts will roll back their salaries 24 percent. No player can earn more than 20 percent of the team cap, which for 2005-06 means no player can earn more than $7.4.million.
Q: Are salaries tied to revenue?
A: Yes. The league’s total expense for player costs (salaries, bonuses, benefits and insurance) cannot exceed 54 percent of revenue. The salary cap and payroll range will move up or down as revenue increases or decreases each year. No one knows the impact of the strike. In 2003-04 the league generated $2.1 billion in revenue. The goal for this season is $1.8 billion.
Q: What if revenue falls short of projections?
A: The players will put a percentage of their salaries into an escrow account. If the NHL doesn’t generate the $1.8 billion in revenue, the players forfeit that money. The players will receive the money if the league makes the revenue projections. If revenue increases, the players would benefit.
Q: Is free agency changed?
A: The players gained some ground here. Eligibility for unrestricted free agency is at age 31 in 2005, age 29 in 2006, 28 in 2007. In 2008, it will be 27 or seven years of NHL tenure.
Q: Should we expect a lot of player movement before the season begins?
A: Teams aren’t sure how the rosters will sort out. Many teams are well above the salary cap and will be forced to release players. The Ducks, for example, have eight players under contract for next season at about $20 million (after the 24 percent salary rollback). That means they will have less than $19 million to sign the remaining players.
Q: What happens to a player who signed a three-year contract before the lockout?
A: It’s now a two-year contract minus the 24 percent rollback.
Q: What about salary disputes?
A: The deal includes a two-way salary arbitration, which means players and owners can opt for arbitration. Before only players had those rights. This will allow owners to cut salaries of underperforming players.
Q: Will the teams have the same profitability?
A: There is a revenue-sharing stipulation, where the top 10 money-making clubs donate to a fund shared by the bottom 10 teams.
Q: When can we expect to see hockey again?
A: The season is expected to begin the first week of October. Teams will begin training camps the second week of September. There will be an 18-day shutdown in February for the 2006 Olympics in Turin, Italy. There will not be an All-Star Game in 2006.
Q: When can I buy tickets?
A: The season schedule will be released after the agreement has been ratified, which is expected late next week. Individual game tickets are not available until after that. The Ducks are accepting new season-ticket deposits, and the renewal process is under way for current season-ticket holders. The Kings are accepting deposits for season tickets.
Q: What’s the status of the TV contracts?
A: The NHL has an agreement with NBC to split advertising revenue. NBC will broadcast games on seven Saturdays starting in January. The network will show six playoff games and Games 3-7 of the Stanley Cup Finals in prime time. ESPN’s vice president of programming and production, Mark Shapiro, said the network would be willing to listen to new proposals from the league. “We’ve had a very good, long-term relationship with the NHL, and we’re always open to listening to potential scenarios that have us both equally sharing any risk,” Shapiro said.
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