Suddenly, the negotiations between the NHL and its players union have gone very public.
Hours after NHL Commissioner Gary Bettman made public a letter to union leader Bob Goodenow Tuesday night that stipulated the league’s “last effort to make a deal” and issued a $42.5 million per team hard salary cap ultimatum, Goodenow responded in kind.
In a response to Bettman, also circulated among the media, Goodenow offered to reduce the union’s salary cap ceiling to $49 million. The owners rejected this immediately.
Bettman has said he will announce the season is canceled at noon Wednesday if the union doesn’t accept his terms.
Tuesday was an extraordinary day. It started with the acknowledgment the union had made a major concession late Monday night in accepting a salary cap.
After insisting from Day One of the lockout they never would accept a cap, the union proposed a $52 million cap with luxury taxes. It was a major concession that sources say was a result of a major rift within the union.
The league rejected the proposal, but there was optimism because, for the first time, both sides were discussing a cap. The league also had agreed not to “link” salaries to revenues, which was a major issue for the union considering revenues are expected to be depressed for the next couple of seasons.
“We wish the NHL had offered a `no linkage’ proposal before [Monday] so that negotiations in that arena could have commenced sooner,” Goodenow wrote in his letter to Bettman.
Many believe that since the “philosophical opposition” to a salary cap had been surmounted, the two sides would be able to negotiate a ceiling on a cap between the $40 million the league had proposed and the union’s $52 million counteroffer.
With many insiders thinking that splitting the difference at $45 million would secure a deal and save the season, Bettman released his letter to Goodenow.
“This offer is not an invitation to begin negotiations–it’s too late for that,” Bettman wrote. “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.”
In other words: Take it or leave it at $42.5 million–by Wednesday morning.
Releasing the letter publicly, many believed, was a slap at a union that sources say is in disarray and already was brought to its knees. Instead, it may have served to unite the warring factions against a common, longtime foe–Bettman.
“I’m not on the negotiating committee, and I don’t make the decisions, but it seems to me they’re trying to force something on us. And it’s not appreciated,” Florida Panthers goaltender Roberto Luongo said.
Said one agent, “I don’t know what [the league] is thinking.”
In recent weeks both sides have been more conciliatory toward one another and maintained that publicly commenting on negotiations wouldn’t serve any purpose. But, for some unknown reason Tuesday, all the dirty laundry was aired.
There was little doubt that once Bettman went public with his letter, Goodenow would respond in kind, putting the onus back on Bettman to make another offer or pull the plug on the season.
Many familiar with Bettman and Goodenow say they can’t work with each other. Bettman has been described as “arrogant” and a “bully” while Goodenow is said always to want to negotiate only off his proposals. In fact, face-to-face meetings recently have featured each leader’s deputies–Bill Daly for the league, Ted Saskin for the union.
Goodenow has more than one opponent on his hands however.
According to sources, a large faction of players put together by high-powered agent Don Meehan openly broke with Goodenow on Monday and forced the union to accept a cap. The league countered by offering not to “link” salaries to revenue–a major stumbling block for the union because revenues are expected to decrease dramatically in the next season or two.
High-profile players such as St. Louis defenseman Chris Pronger, Calgary’s Jarome Iginla and Philadelphia’s Jeremy Roenick were rumored to be the leaders of the breakaway group, with Roenick being the most vocal.
“Am I excited about a salary cap? No. But it’s about trying to get a deal done,” Iginla said.
The union’s acceptance of a salary cap surprised many players Tuesday morning.
“Why weren’t we willing to accept one seven months ago?” asked Blackhawks winger Matthew Barnaby.
The sudden reversal left many speculating whether Goodenow would be able to survive as union leader. There appears to be a major battle within the union, with one faction wanting to settle and accept a cap and another faction firm against any kind of cap.
In theory, the season could be canceled over about $2.5 million. It is believed the players would accept a $45 million cap on salaries–not including the extra $2 million or so the owners pay in benefits to the players. Teams are not obligated to spend the maximum, just the minimum, which would be around $30 million.
If the season is canceled, it will be the first time in North American sports an entire season has been lost to a labor dispute.
Not only are there questions about Goodenow’s future, but also Bettman’s.
While Goodenow was under pressure to get a deal done, so too was Bettman from owners who think the loss of a complete season would inflict irreparable damage to the sport.
The owners went into the lockout having had a summer in which they could sell season tickets, sponsorships and sign new local radio-TV contracts thinking that even with the impending lockout, some portion of the season still would be played.
So far, the players have suffered more monetarily because season-ticket money hasn’t been fully refunded yet from clubs’ interest-bearing accounts.
But if there is no season, the dynamic may change. Players are not paid in the summer and with uncertainty surrounding next season, owners can’t sell season tickets or sponsorships. There also have been rumors that many local stations are eager to renegotiate their rights packages with teams.
Bettman maintained in his letter to Goodenow that if the season is canceled, the league’s offer will go down.
“I know, as do you, that the `deal’ we can make will only get worse for the players if we cancel the season,” Bettman wrote. “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.”
Despite that, Iginla said Tuesday that if there is no deal, “we’re going to be out a long time.”
Of course, if each side keeps publicly releasing letters moving $2 million at a time, they will get to where they need to be.
