The owners and players have finally signed a peace treaty. In the course of the next six seasons, we are going to work in perfect harmony (!!!)… but, along the way, we realized that this agreement, negotiated in haste in the hope of eliminating part of the deficit caused by the pandemic, does not improve the situation, at least among the players.
But, we wanted peace. We didn’t want to end up with a tax rate of 30 % to fatten the trust account to make up the shortfall.
We will say that the players have gained since the tax rate could be 6 % in the last years of the agreement. An average possible of 11 % for the duration of the contract. But still it is necessary that the earnings reach$4.8 billion.
Can you guarantee that we will reach this goal in the economic environment that will create the COVID-19 in the years to come ?
And with a salary cap to 81.5 M$ for two or three seasons, the team leading will be required to venture on the hazardous terrain and the possibility of losing their luster. After all, they will have to liquidate a large workforce in order to reduce the wage bill. This also means that players standalone, without restriction, can only rely on the liquidity available to the trainings for several years.
Because a return to work was essential and that the hockey players were at the heart of the survival of their sport, it was necessary to move quickly on the various clauses of the convention work. Usually, one does not review a work contract also complex in a few weeks. It takes months and.
It has therefore neglected to investigate in depth some important points of the convention work.
What have we done to improve the status of the player stand-alone with restriction ?
Nothing at all.
Yet, had we not given the opportunity to amend this regulation, while making reference to the basketball, and enable the team that owns the rights to a player to match the hostile offer made by any other training ? By contrast, in the NBA, if the team does not equal the offer, they receive nothing in compensation. It is take it or leave it.
And I always wondered why we had to ensure that contracts in a system where it requires a salary cap. The NFL offers its teams the right to withdraw, immediately after the first season, to a multi-year contract, if the player has not met expectations. Of course, it results in significant expense, but at least the teams can correct an error.
But why change what works perfectly ? Error or not, the owners will always be able to pass the note to the players. This is what they do since 2005.
Because in principle, they are partners, they have made some concessions by allowing a player traded at the deadline to sign an agreement of eight years with his new employer.
The owners rub their hands in token of satisfaction. Gary Bettman is smiling with beautiful teeth. Now, the owners say to their ceo : “The field is free. “
There will assuredly be a bargain. There will be major transactions to complete. There are too many teams in trouble with the salary cap for the teams in growth do not take advantage of a business opportunity as captivating.
The smartest will win the battle of the balance of forces. The more daring will be able to apply their business model more quickly than expected.
Those who fail will not have any argument for the defense.
Note – Max Domi and the Canadian have made a wise decision. The skater on the Habs is an athlete of high risk. The COVID-19 is a formidable opponent for a type 1 diabetic.