The NHL and NHLPA are nearing agreement on a tentative memorandum of understanding for a new six-year Collective Bargaining Agreement and a return-to-play plan that would see the NHL complete the 2020 season with a 24-team playoff. TSN’s Frank Seravalli is reporting that “the deal is believed to be imminent” and that “multiple stakeholders in the NHL community have now been apprised of the details.”
TSN’s Bob McKenzie added that the “real significance of this massive agreement” is that it provides an “economic roadmap” for the NHL and NHLPA to recover from the harmful business effects of the coronavirus pandemic.
The news comes on the heels of the St. Louis Blues canceling practice on Friday due to multiple players testing positive for COVID-19 and the NHL reporting on Monday that 26 players total have tested positive for the novel coronavirus since early June.
The NHL and NHLPA are hopeful they will today finalize a tentative agreement on Phase 3/4 RTP protocols, a CBA extension, transition rules and critical dates calendar. @frank_seravalli has the details of what a lot of that will look like: https://t.co/qm5rib6Pec
— Bob McKenzie (@TSNBobMcKenzie) July 4, 2020
The real significance of this massive agreement (assuming it’s finalized/ratified) is that it provides a long-term, six-year plan and economic roadmap for players and owners to get through troubling economic times because of past, present and future impact of the pandemic.
— Bob McKenzie (@TSNBobMcKenzie) July 4, 2020
Some of the important details of the new CBA that are being reported include:
- Target dates: The 24-team playoff would kick off on August 1 after a two week training camp. Teams would travel to the hub cities, Toronto and Edmonton, on July 26. The Stanley Cup would be awarded no later than early October, which would allow the 2020-21 season to begin in December or January 2020.
- Any player would be allowed to opt-out of the 24-team playoff without penalty. Having an underlying condition is not required to opt out due to the coronavirus pandemic.
- Toronto and Edmonton would be the two hub cities. Edmonton would host the 2020 Stanley Cup Final.
- Olympic participation agreed upon. NHL players would play in the upcoming 2022 Beijing Olympics and the 2026 Milan Olympics after a negotiation process with the IIHF and IOC.
- Minimum salary increases. Next season, the minumum salary in the NHL will be $750k and will evetually graduate to $800k by the 2025-26 season.
- An escrow cap will be introduced. Escrow (explainer here) would be 20 percent for the 2020-21 season and eventually fall to 6 percent by 2025-26.
- A salary deferall will be introduced for the 2020-21 season. Players would defer 10 percent of their salary and signing bonus and it would be paid back in three equal installments in 2023-24, 2024-25 and 2025-26.
- No-trade clauses written into contracts cannot be altered in the future. Previously, if an NHL player was traded before his no-trade clause went into effect, the new team could void that part of the agreement.
- No signing bonus limits. There will be no changes to the signing bonus system moving forward. It’s believed the NHL was previously seeking to limit signing bonuses to 50 percent of the total contract.
Headline photo: Elizabeth Kong/RMNB
