Players’ Association Offers 24% Salary Reduction

The National Hockey League Players’ Assocation met with the NHL on Thursday to present an offer with what they deemed to be “significant, significant changes” – the first offer for a new collective bargaining agreement from either side since the league’s lockout of the players began almost three months ago.

The players were expected to offer a 10% salary reduction and a luxury tax of 75% for every dollar above $40 million. They surprised hockey experts everywhere by offering a luxury tax of 20% on every dollar above $45 million and a staggering 24% salary cut.

The tax rises to 50 cents on the dollar over $50 million and 60 cents on the dollar over $60 million. Also included in the offer were a revamped arbitration system and lower entry-level contracts.

The NHLPA says that their proposal would save the owners’ – who claim to have lost $300 million last season – up to $600 million in salaries.

Despite the immediate savings to the owners, NHL Commissioner Gary Bettman continued to state his opinion that the league needs a salary cap. His only concession to the players was that “they showed a recognition of the economic problems that the game is facing.”

The league and the union will meet again next Tuesday, when the NHL is expected to offer a counter-proposal.

Author: Clark Rasmussen

Clark founded the site that would become DetroitHockey.Net in September of 1996 with no idea what it would lead to. He continues to write for the site and executes the site's design and development.

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