NEGOTIATING

ON THIN ICE
THE 2004-2005 NHL DISPUTE

Group 7:
Maithili Choudhar
Sanjeevani Jadhav
Spandana Karna
Aman
Sonali Sharma
Shubham Pujhar
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INTRODUCTION:
• The players and the team owners weren’t able to reach a common
ground on the negotiation of a new collective bargaining agreement
that provided the basic framework for player’s salary contracts and
agreement on a wide array of issues like salary arbitration , free
agency and guaranteed contracts

• The players were represented by the National Hockey League

Player’s Association(NHLPA)
The team owners were represented by the National Hockey
League(NHL)

• Months of negotiation had produced only rejected offers and NHL

commissioner locked-out the players
• The lockout resulted in NHL players joining European hockey clubs ,
sports arenas finding other sources of revenue etc.
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1957
Nov 1917 First significant 1967
Est. of NHL step towards Est. of NHLPA
unionization

1998-99
1994-95
Season April 1992
NHL locked out
renegotiation First strike
the players
request

2003-04
2002-03
Mistrust of 2004-05
19 teams players in
reported Levitt report; The season
operating Lockout was cancelled
losses announced
4 PROBLEM -1

NHLPA AND NHL’S PAST RELATIONSHIP

 Union’s lack of trust in League :
NHLPA disputed the NHL’s operating loss numbers
The league refused access to their financial books

 1992 Strike:
Demand for marketing rights
Shorter CBA contract length

 1994-95 Season lock-out:

Financial concerns
Helps small market team become more competitive, decrease revenue gap

 1998-99 Renegotiation:
CBA ineffectiveness
Unrestricted free agency, restrictions on rookie pay
Players continued to win salary arbitrations
5 PROBLEM -2

FINANCIAL TRANSPARENCY BETWEEN OWNERS

AND PLAYERS

 Unified report of performance

 Under reporting of profitability
 Players demand for financial disclosure
 Owners’ disapproval on financial disclosure
 Distrust of union in audit report
6 PROBLEM -3

SALARY CAP PROPOSAL

 The point of contention

 1994-1995 Lockout and League’s 3 proposals :
Payroll tax system
Unrestricted free agency system
Cap on rookie salaries and on rookie signing bonuses

 Salaries linked to revenues

 League wanted to modify rookie salary cap
 Offers and counter offers were made between the league
and the union regarding the salary cap
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RECOMMENDATIONS:

 Adopt a win-win strategy

 Inclusion of mediator
 Increase representation of their organizations
 Joint Audit Team
 League consider other benchmark for salary cap
 Focus on common goals
THANK YOU 