06-26-2020, 09:20 PM
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#1
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Commie Referee
Join Date: Oct 2002
Location: Small town, B.C.
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NHL and players closing in on CBA extension
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The NHL and the players are closing in on a new collective bargaining agreement that includes remedies for the league's revenue losses due to the coronavirus shutdown, sources confirmed to ESPN on Friday.
One source indicated that a memorandum of understanding could be announced "as early as Sunday." But that timing was characterized by another source as being "really fast."
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Quote:
The framework discussed for a CBA extension would be around a six-year term, according to sources. Two of those years would cover the 2020-21 and 2021-22 seasons, before the current CBA was set to expire in September 2022. Sources said there was some wiggle room on that term, and that another framework being discussed was a little longer.
There had been progress on a new CBA before the league paused its season on March 12 due to the COVID-19 pandemic, but major financial issues had yet to be ironed out. The huge loss in hockey-related revenue due to the paused season -- and a proposed restarted postseason in empty arenas -- dramatically changed the financial landscape for both owners and players. Both sides wanted clarity on how to handle these losses, which are expected to extend into next season, before returning to play.
One major issue is escrow. The current financial system in the NHL involves a 50-50 split in revenue between the players and owners. The escrow system, which calls for a percentage of withholding from players' paychecks each season, maintains that balance by either funneling money back to the owners in the case of a revenue shortfall or having it refunded to the players after the season.
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With the losses in revenue this season, there was speculation escrow could rise as high as 35% for the players. For a point of comparison, escrow withholding for 2018-19 was 12.9%, with 3.25% returned to players. The official escrow loss for the players that season was 9.65%.
But the current CBA framework being discussed includes a cap on escrow at around 20% for the first two seasons of the deal. After that, it would revert to the traditional system on escrow, as the league's revenues are expected to be bolstered by a new U.S. broadcast rights contract and the expected windfall from the new team in Seattle, which some have projected to be a top-10 revenue team in the NHL.
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https://www.espn.com/nhl/story/_/id/...ba-sources-say
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