According to the Associated Press, the following is a letter NHL Commissioner Gary Bettman sent to NHLPA Executive Director Bob Goodenow on Tuesday.
Dear Bob:
We attempted to reach out to you with [Monday’s] offer of a team maximum cap of $42.2 million ($40 million in salary and $2.2 million in benefits) which was not linked to League-wide revenues. As Bill told Ted, “de-linking” a maximum team salary cap from League revenues and total League-wide player compensation has always been problematic for us, especially since we cannot now quantify the damage to the League from the lockout. This presents the risk we will pay out more than we can afford. As you know, if all 30 teams were to spend to the maximum we proposed, and if the damage to our business is as we discussed at our meetings in New York, then the League would continue to lose money.
I know, as do you, that the “deal” we can make will only get worse for the players if we cancel the season — whatever damage we have suffered to date will pale in comparison to the damage from a canceled season and we will certainly not be able to afford what is presently on the table. Accordingly, I am making one final effort to reach out to make a deal that will let us play this season.
We are increasing our offer of [Monday] by increasing the maximum individual team cap to $44.7 million ($42.5 million in salary and $2.2 million in benefits). This offer is not an invitation to begin negotiations — it’s too late for that. This is our last effort to make a deal that’s fair to the players and one that the Clubs (hopefully) can afford. We have no more flexibility and there is no time for further negotiation.
If this offer is acceptable, please let me know by 11 a.m. [Wednesday], in advance of my scheduled press conference. Hopefully, the press conference will not be necessary.
Sincerely,
Gary B. Bettman
Commissioner
The counterproposal
Highlights of the players union’s counterproposal to the NHL for a six-year collective bargaining agreement.
– Accept NHL revenue sharing plan to share at least $88M in each year. Clubs may credit any payroll taxes paid against their revenue sharing contribution.
– Salary cap of $49M in salary and bonuses
– Escalating payroll taxes of 25 percent for $40M to $43M; 50 percent for $43M to $46M; 75 percent for $46M to $49M and 150 percent of $49M to $53.9M (only twice during term).
– Salary floor of $25M (each team can fall no more than 10 percent below only twice during term).
– Minimum salary of $300,000 as per NHL proposal
– 55 percent of playoff revenues to be paid to players for 2005 playoffs
Bettman’s response
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 [Monday] 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 percent of revenues. We cannot afford your proposal.
Our offer of earlier today was a $75 million increase over the offer we made [Monday]. 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
