The lockout lasted 113 days, but it is finally over. Early this morning, after missing over 500 games, the NHL and the NHL Player’s Association (NHLPA) reached a tentative agreement on a new Collective Bargaining Agreement. So what exactly has changed between the old CBA and the new one?
- The CBA has a 10 year term and includes a mutual opt-out clause after year eight.
- The expired CBA had a term of eight years, with an opt-out clause for both sides after seven years.
- The salary cap ceiling in Year One will be $60 million, however, as expected during this past summer, teams will not penalized for spending to the previously set $70.2 million cap.
- The salary cap ceiling in Year Two will be $64.3 million.
- This is the same cap ceiling as this past season (2011-2012).
- There is a 50-50 split of Hockey Related Revenue (HRR).
- The expired CBA had a 57-43 percent split in favor of the players. The NHL’s initial proposal this summer asked for 57% in favor of the owners.
- Contract terms are limited to seven years, or eight years for teams re-signing their own players.
- The expired CBA had no limit on contract term.
- Year to year contract variance is set at 35%, with no year’s salary being less than 50% of the highest yearly salary.
- The expired CBA had what was known as the 100% percent rule. Salary could not vary by more than 50% of the lower salary during the first two years of the contract.
- There are two compliance buyouts which can be used to buy out a player from his contract without any cap ramifications. They can be used only over the next two summers.
- The expired CBA had a six day period during which clubs could exercise their compliance buyouts.
- There were concessions made by the NHL on the player’s pension as well. Not all of the details have emerged, but this is believed to have been on of the player’s biggest sticking points. The NHL did agree to share limited liability.
Obviously not all of the details are known, and once the new document is released, I will be sure to dive into some of the details much like I did for CBA 101.