Dec. 13, 2004. 09:37 PM
League rebuffs players' offer: Report
FROM CANADIAN PRESS
Any optimism that may have existed after last Thursday's proposal by the NHL Players' Association has all but vanished on the eve of the next round of labour talks.
According to a league memo obtained by TSN, the NHL has rejected the union's offer - which included a 24 per cent rollback on existing contracts.
In the letter to the league's 30 owners dated Sunday, Bill Daly, the NHL's executive vice-president and chief legal officer, said the union offer "while offering necessary and significant short-term financial relief, falls well short of providing the fundamental systemic changes that are required to ensure that overall league economics remain in sync on a going-forward basis.
"While the immediate `rollback' of 24 per cent offered by the union would materially improve league economics for the 2004-05 season, there is virtually nothing in the union's proposal that would prevent the dollars `saved' from being re-directed right back into the player compensation system, such that the league's overall financial losses would approach current levels in only a matter of a couple of years."
The league had no immediate comment on the TSN report. The NHLPA said it would serve no purpose "to comment on excerpts from a leaked league document."
The leak comes on the heels of criticism of the union offer from the ownership of the Edmonton Oilers and Ottawa Senators.
Meanwhile, NHLPA president Trevor Linden was surprised the NHL leaked its answer to the players offer.
Linden told Vancouver radio station AM 730 it would have been nice to sit in a room and talk it over with the NHL.
Linden says with all the concessions the union has made, he can't believe the owners still can't be responsible enough and set a budget they can stick with.
"I don't think there's too many businesses out there that don't have to set their own budgets and don't have to be responsible, and I find it amazing that they need us to do that for them," Linden said.
Both sides meet Tuesday at 1 p.m. EST at the league's Toronto office where the NHL will hand over its counter-proposal.
The players reject the league position that their offer is a temporary fix.
"We have given up a lot," New York Islanders captain Michael Peca told The Canadian Press on Monday. "And I think it's a little misleading when the league says it's a one-shot deal. The offer would re-set the market, it's going to bring arbitration into play and all the other factors."
The union feels it made major concessions last Thursday, enough to salvage the season.
"Our proposal provides a basis for the owners to reduce their labour costs in a meaningful and reliable way and there can be no doubt as to its impact given the fact over $500 million (all figures U.S.) of the savings come out of existing contracts and at least another $500 million in savings will result from the significant system changes being offered," NHLPA senior director Ted Saskin told The Canadian Press on Monday.
The question now is whether the NHL's counter-proposal will include a link between player costs and league revenues. If so, the season is likely over because the NHLPA will not accept a salary cap.
The leaked memo says the NHL counter-proposal will ask for the complete removal of salary arbitration and a "restructuring" of the NHLPA's 24 per cent salary rollback.
The league praised the union last week for the rollback offer, but said the proposal still didn't include "cost certainty." Commissioner Gary Bettman can't publicly say it, but he wants a salary cap in order to control some owners and GMs, whose bad signings during the last CBA help salaries spiral out of control.
And that's where the players draw the line. The NHLPA doesn't feel it its responsibility to protect the owners and GMs from themselves.
"There comes a point when teams need to be accountable for some of the business decisions that they've made," Peca said from his off-season home in Buffalo. "If everybody could conduct their business like a (New Jersey GM) Lou Lamoriello or like Brian Burke did in Vancouver, then they're going to be successful.
"In the business world, if a company makes a bad business decision, then they have to pay for it, whether the stock goes down or whatever happens. They want an idiot-proof system where they take that possibility away from their general managers or owners - owners that look at owning a hockey team as just a hobby and not a business entity."
But Oilers governor Cal Nichols publicly rejected the union's offer Monday.
"In my opinion, and that of the Edmonton Oilers, it is an enticement to carry on doing essentially what we're doing and the Edmonton Oilers won't be here long-term if that's what we're prepared to accept," Nichols told reporters in Edmonton.
That came a day after Senators owners Eugene Melnyk told reporters in Ottawa that the union's offer wasn't good enough, calling the rollback "a one-shot deal that doesn't work."
"I found Mr. Melnyk's recent comments puzzling, especially in light of how our proposal would impact his team," said Saskin. ``The Ottawa Senators, with a large number of players under contract for a number of years, have over $10 million in guaranteed reductions to payroll in the first year and over an additional $17 million in the following years. When coupled with the other important system changes being made, I fail to see how Ottawa would not be able to manage their player budget in a way that does not provide them with a significantly lower player cost for the foreseeable future."
Lamoriello, who sits on the league's negotiating committee, was a little more hopeful Monday that talks could still continue. He points to the rollback as a good start.
"Like everyone else, I was pleased that for the first time there was an acceptance - whether it be directly or indirectly - of the (Arthur) Levitt report," he told The Canadian Press from New York. ``That the dollars that have been bandied around that were lost, finally came to the forefront. And I thought that was a very positive thing because before you can move forward you have to have some type of agreement somewhere.
"And hopefully the open dialogue can just continue. The game is more important than any of us and we have to do whatever is in the best interest of the game."
But Peca doubted the players could give back much more.
"We've kind of reached a breaking point where we've given back so much that there's really no room for us to go," he said.