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Professional hockey

NHL Lockout: Owners' Tax Proposal Rejected by Players

Strategic Insights

— 1 min read

The National Hockey League owners have agreed to a tax on gate receipts as part of their latest proposal, but the players have rejected the deal due to a separate tax on payrolls that they see as a disguised salary cap. National Hockey League Players' Association (NHLPA) executive director Bob Goodenow is working on a counter-offer with economic experts, while NHLPA vice-president Kelly Miller emphasizes that the players will not negotiate a salary cap. The owners' tax proposal includes a 3-per-cent tax on gate receipts, but also a 5-per-cent tax on payrolls exceeding the league's average annual payroll, which the players see as an obstacle to reaching a new collective agreement.

Key Takeaways:

  • The players have rejected the owners' latest proposal due to the tax on payrolls, which they consider a disguised salary cap.
  • The owners have offered a 3-per-cent tax on gate receipts, but the players see it as insufficient to address their concerns about the payroll tax.
  • NHLPA executive director Bob Goodenow is working on a counter-offer with economic experts to present to the owners.
  • NHLPA vice-president Kelly Miller emphasized that the players will not negotiate a salary cap under any circumstances.
  • The owners' tax proposal includes a 5-per-cent tax on payrolls exceeding the league's average annual payroll, which would escalate to a limit of 105 per cent.
  • Dallas Stars player representative Andy Moog suggested a Canada Cup-style tournament held in non-NHL cities with NHL players representing their countries.
  • Toronto Maple Leaf president Cliff Fletcher warned that players who join other leagues during the lockout could risk forfeiting their NHL salary if injured.
  • The NHL referees and linesmen are being paid for 45 days after the player strike began, but their contract does not address a lockout situation.

Statistics:

  • 3% tax on gate receipts proposed by the owners
  • 5% tax on payrolls exceeding the league's average annual payroll proposed by the owners
  • 5.5% tax on both payrolls and gate receipts proposed by the players
  • 105% maximum tax rate on payrolls exceeding the league's average annual payroll
  • 45 days of pay guaranteed to NHL referees and linesmen during the lockout

Sources:

  • "The Hockey News"
  • NHLPA (National Hockey League Players' Association)
  • Toronto Maple Leaf Hockey Club
  • Dallas Stars Hockey Club

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