The lockout continues as three days of negotiations regarding a new Collective Bargaining Agreement (CBA) between the National Hockey League (NHL) and National Hockey League Players Association (NHLPA) ended this weekend. The main issue dividing both sides remains the same: Economics.

The NHL is demanding a revenue split between the league and players of 50-50 instead of the previous 43-57. Despite making $3.2 billion in revenue during 2011-2012, the NHL insists players are overpaid. This is a destructive viewpoint for several reasons. One, after the 2004-2005 lockout, the players accepted a 24% salary reduction and implementation of a hard salary cap, basically giving the NHL all it wanted. Expecting that to happen again is highly unlikely. Two, 5 teams made roughly $212 million in profit 2 years ago while the other 25 lost about $86 million total. Expecting the players to forfeit salary to solve the league’s revenue sharing problems is absurd. Three, before the old CBA expired, several owners rushed to sign star players to new lucrative long-term contracts highlighting their hypocrisy; it is this kind of contract that drives up player salaries.

In my opinion, the NHL needs a financial reality check before it risks hockey’s growing popularity.

Articles:

http://www.nhl.com/ice/news.htm?id=642514

http://www.sbnation.com/nhl/2012/9/17/3345350/nhl-lockout-2012-gary-bettman-nhlpa-cba

http://bleacherreport.com/articles/1352687-nhl-lockout-players-key-issue-remains-revenue-sharing

Image:

National Hockey League. “NHL Logo.” Photo. Sportsmediamasters.com  1 Oct. 2012. 1 Oct. 2012

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