NHL Collective Bargaining Agreement Update: Changes to Retention of Rights to Negotiate with Draft Picks

Strategic Insights -

The National Hockey League (NHL) and National Hockey League Players' Association (NHLPA) have announced the extension of the collective bargaining agreement through 2030. As part of the new agreement, the distinction between negotiating with draft picks from the Canadian Hockey League (CHL) or National Collegiate Athletic Association (NCAA) will be eliminated, standardizing the retention of rights to exclusively negotiate with draft picks.

This change has significant implications for players from the CHL, who will be eligible to play for men's NCAA Division I hockey programs starting in the 2025-26 season. Prior to this change, CHL players were not eligible to play in the NCAA due to the NCAA's amateurism rules. The ability to play in the NCAA presents a unique opportunity for prospective NHL talent and CHL players, as it allows them to compete against older opponents and potentially earn compensation through name, image, and likeness (NIL) opportunities.

The new collective bargaining agreement will also affect the period during which NHL teams retain the exclusive right to negotiate with players drafted from the CHL or NCAA. Under the new agreement, NHL teams will retain the exclusive right to negotiate with draft picks as follows:

  • If the player is drafted at age 18, until the fourth June 1 after they are drafted
  • If the player is drafted at age 19 or older, until the third June 1 after they are drafted
  • If the drafted player is playing in the NCAA at the time of expiration, until 30 days after the NHL receives notice that the player is no longer playing in the NCAA

This change is expected to have long-term effects, including fewer players entering the NHL's professional development system prior to the end of their NCAA eligibility and more players choosing to leave the CHL early to pursue opportunities in the NCAA.

Key Takeaways:

  • The NHL and NHLPA have extended the collective bargaining agreement through 2030
  • The distinction between negotiating with draft picks from the CHL or NCAA will be eliminated, standardizing the retention of rights to exclusively negotiate with draft picks
  • CHL players will be eligible to play for men's NCAA Division I hockey programs starting in the 2025-26 season
  • The new agreement will affect the period during which NHL teams retain the exclusive right to negotiate with players drafted from the CHL or NCAA
  • NHL teams will retain the exclusive right to negotiate with draft picks until June 1, 4 or 3 years after they are drafted, depending on the player's age
  • The ability to play in the NCAA presents a unique opportunity for prospective NHL talent and CHL players to earn compensation through NIL opportunities

Statistics:

  • 84-game season is among the changes coming to the NHL as part of the new collective bargaining agreement (Source: TSN)
  • The new collective bargaining agreement has been reported to include changes to the NHL's salary cap, revenue sharing, and the use of technology (Source: The Athletic)
  • The NCAA has relaxed its policies to permit athletes to profit off of their name, image, and likeness (NIL) starting from July 1, 2021 (Source: Supreme Court of the United States' decision in National Collegiate Athletic Association v. Alston, 592 U.S. 69 (2021))
  • The exclusion of Canadian athletes in the NCAA, including those coming from the CHL, from earning certain income due to U.S. immigration laws (Source: U.S. immigration laws)

Sources:

1. See 84-game season among changes coming to NHL as part of new CBA | TSN

2. What's in the new NHL CBA? Digging into the memorandum of understanding - The Athletic

3. National Collegiate Athletic Association v. Alston, 592 U.S. 69 (2021) - Supreme Court of the United States