Dreaded L-word already back in play

Bettman’s pre-emptive strike, front-loaded deals set tone for next NHL contract battle

There was a very comical moment a week ago when NHL commissioner Gary Bettman was in Toronto.

It was pointed out to him that players are front-loading their contracts, via signing bonuses, to get paid the maximum before the 2020-21 season. That, of course, is when the players or the owners could opt out of the collective agreement, otherwise due to expire in 2022-23.

“I don’t know why they’re doing that,” Bettman told a sports business conference with a straight face.

Later that afternoon, Don Fehr, executive director of the players’ association, reminded everyone why.

“We have a history in this sport that basically there’s a lockout at every opportunity,” Fehr said.

It’s four years away at the earliest, but both sides are already positioning for what could be the fourth lockout of Bettman’s tenure. One of those, in 2004-05, cost the NHL an entire season and ushered in the salary-cap era — plus something called escrow. Put simply, 15 per cent of players’ salaries is held independently (the percentage used to be smaller, but has increased as league growth stagnates). If NHL revenues don’t match projections, the money goes back to the owners. Only once have players wound up getting all of the contract money they signed for.

The first salvo in the next round of contract talks was fired last week by Bettman, who offered to:

Extend the current deal till as late as 2025-26, moving the first opt-outs to 2023-24.

Keep the status quo on escrow and a 50-50 split of hockey-related revenue.

In exchange, he wants players to agree to compete in the next two Winter Olympics plus other unspecified international events.

“I don’t see what one has necessarily to do with the other,” said James van Riemsdyk, the Leafs’ player rep. “It’s one of those things like snapping your fingers over here to distract you from what’s in front of you.”

What’s in front of the players is a system that’s shrinking the value of their contracts. Their wish list will no doubt include the complete elimination of escrow, though they might settle for a cap — perhaps 10 per cent.