Music: {allcanada} Dispute delays revenue-sharing payouts

Monday, October 31, 2011

{allcanada} Dispute delays revenue-sharing payouts

Revenue-sharing payments to NHL teams and the refunding of player escrow overpayments are delayed indefinitely because the league and the NHL Players Association haven't agreed on hockey-related revenue figures for 2010-11.

This marks the first time since the salary cap was introduced six years ago that checks weren't issued by the end of October.

"As a practical matter, we are already beyond the finalization dates contemplated by the CBA," said NHL Deputy Commissioner Bill Daly. "But, that, by itself is not particularly unusual and has happened in various other years since we entered into this CBA. Obviously, if we do not reach an agreement, and issues remain to be arbitrated, we will be in new territory in terms of timing."

There have always been disputes over what counts as hockey-related revenue, but this squabble is drawing more notice because it has taken more time and involved a larger amount of money. Also early next year, the NHL and the NHLPA will begin negotiations on a new-collective bargaining agreement.

Although there are disagreements on a handful of revenue issues, the biggest one is whether the city of Glendale's $25 million guarantee against the Phoenix Coyotes' losses should count as revenue. The negotiations between the two sides are ongoing.

The money involved is substantial because the league collected roughly $200 million (12.4% of each contract's face value) from players, and probably three-quarters of that money will be returned to players.

Ten teams qualify for revenue sharing, based on market size and their yearly revenue.

Player agent Steve Bartlett said he has fielded calls from some of his clients about when money will be distributed, but he doesn't think there is major concern. Players receive interest on the money held by the league.

"The original (hockey-related revenue) number was pretty favorable, and this dispute can only make it better," Bartlett said. "It can't make it worse."

The NHLPA wanted the NHL to make a partial refund to players, based on the revenue that is not disputed, but the NHL declined that request. It doesn't want to disburse any funds until the final number is determined.

If the matter goes to arbitration, it theoretically could delay matters 45 to 90 days. But the NHLPA likely would request an expedited arbitration process.