Don Fehr’s Letter to the Players’

Found this courtesy of Pierre Lebrun from ESPN, this is the actual letter that Don Fehr sent to the PA after their counter-offers were summarily rejected by the Owners on Thursday. Please do read it hear [ESPN]. The numbers are truly staggering.

Essentially, the worst case scenario plan, as outlined in the Players’ proposals will see the Owners save just under $800 million over the next 5 seasons. That’s $26.5 million per team over that stretch of time. Even in the early years of the plan where the savings are less dramatic you’re talking about an extra $2 million per team per season in savings, what should be more than enough to pay arena employees and relieve some of the pressure that small market teams have been feeling. If the league were to continue to grow at its current historical rate of 7.2% you’re looking at well over a BILLION DOLLARS in savings for the Owners over a 5-year period, that’s an extra $10 million per team ($36.6 million per team in savings), and another $2 million per year. And just think, all but like the ten worst attended teams in the league made money this past season.

The second plan, which calls for even faster salary reductions, would save the Owners even more money, a minimum of $854 million over the same stretch of time. If the league were to continue to grow at 7.2% it would actually cost the league a little bit more money because the reductions were so steep, only netting $1.06 billion. I admit that I’m still clueless as to how the third plan actually works, but I think it was merely a radical departure from the previous versions.

Now I personally am not afraid to throw support to the Players, and there’s one really important reason why: they’re the ones I care about. And that’s really hard to say because no matter where Sid and/or Geno finish in the record books, they’ll probably never be more important to the Pens than Mario Lemieux, and they shouldn’t be. He is the Penguins and the Penguins are him. His hockey ability and mere presence brought the team out of bankruptcy in the mid-80s, he won the Cups in the early 90s, and he bought the team in 99 and by 04 had rescued it from bankruptcy yet again. He delivered the Cup in ’09 and secured the franchise’s long-term future in Pittsburgh with the new arena deal. There’s literally nothing that has happened with the Penguins that Mario hasn’t been part of. But I don’t write this blog about him, I write it about the guys on the team now.

And you may be tempted to say “well I’m not picking sides in this because it’s millionaires arguing with billionaires,” but then again who made the player’s into millionaires? Was it their great inventive talent, or was it us fans who have been turning out in record numbers all across the US and Canada in order to watch these guys play? We the fans who have been buying as many jerseys as the league can turn out in a year? We the fans who gripe about ticket and concession prices yet have sold out Lady Mellon and CEC for 5 straight seasons? And that’s why I care about the guys in the sweaters more than the ones in the suits.

And from there you may say, “well it’s about the game, not the players,” but then why is it that when you look at the AHL or the CHL or any other kind of hockey, you always see scores of empty seats, despite smaller arenas and reasonable ticket prices? Why is it that the KHL or the Swedish Elite League or any other league in Europe is unable to pay the contracts that we see in the NHL? There is something unique about the NHL. And it is for that exact reason that unlike in other job markets the players in the NHL do have a say in negotiating their own collective bargaining agreement. They provide unique and irreplaceable skills that make the NHL’s product one of a kind.

So maybe it is true that you and I can’t walk in and talk to our bosses and make demands like the Players have been, but then again, you and I aren’t unique. We’re just cogs of the machine that can easily be replaced. The same can’t be said about the guys in the NHL, so when they come forward with greatly innovative and possibly even more effective strategies than what the Owners themselves seem capable of reasoning, they deserve to be heard.

I’m not about to go out and calculate the difference between the NHL’s proposed 50-50 split and the PA’s plan, but when you talk about the hypocrisy of rich get richer, there will be no shortage of that in the NHL, whatever CBA decision they should reach.


NHLPA Comes Back with a Counter-Proposal, SOB Rears his Ugly Mug

Hey, d’you see what I did there, it says “NO”?!?!

Wow this all really sucks. On Tuesday there was as much excitement about hockey as there has been since the Kings lifted the Cup back in mid-June. Now in the last two days it’s pretty much all been erased again. On Thursday the NHLPA came back with three distinct variations on the proposal that the Owners made, and to quote Sidney Crosby,

When you make three proposals and get shut down in 10 minutes, it’s hard to think the other side really wants to negotiate.

Guess I’m going to go play in Europe now…

The Same-Old-Bettman, or Bitchman (as he’ll probably go down in history) summarily dismissed the PA’s proposals as “a step backwards.” And Bill Daly said that somehow the Players “misrepresented their 50-50 split.” What all of it means is that we’re probably further from seeing actual NHL hockey than any time before this. Links from [THN] and [PHT] to summarize the day’s proceedings.

A bunch more crap after the break. Read the rest of this entry »


Everybody Talks (The Lockout is in its Third Week)

So the PA and the NHL talked from Friday through Sunday basically nonstop. That’s good news. The bad news is that both sides continue to refuse to acknowledge the presence of an enormous white elephant in the room called collective bargaining. If you want to know how secondary these discussions were, neither Bettman nor Donald Fehr could be bothered to be there, instead they were probably out golfing.

Hey, d’you see what I did there, it says “NO”?!?!

Get more stuff by clicking the bolded text.  Read the rest of this entry »


The Penguins Preseason Should be Starting Today

The title pretty much says it all. The Pens were scheduled to face off against the Columbus Blue Jackets in the first preseason game of the year. At this point we ought to be debating whether Tangradi can really play wing for Sid, and who out of Despres, Joe Morrow, and others will assert themselves as the best young defenseman on the team.

Also, if you didn’t know, all the preseason games in September are cancelled—woo hoo. Get more stuff after the jump. Read the rest of this entry »


Lockout Thoughts: Don’t Think too Much

Honestly don’t really have anything to say about the NHL and its lockout situation right now. Bill Daly said that he and Steve Fehr will be talking this evening about when the two sides can get together to, well, talk. It may be hollow words and it’s undoubtedly true that the lockout has already begun, but still, compared to 2004 when the two sides couldn’t even look at each other for months after the lockout began, this is a step in the right direction—at least both sides seem willing to talk to one another.

In a bizarre twist, ESPN seems to be the only media source that I’ve checked so far that actually has a continually updating list of NHLers signing with European teams. It seems shocking that there aren’t hundreds of players who have fled overseas yet, but I also don’t doubt that most players are waiting for a variety of offers to come in, and we all know that’s something that cannot be rushed. EDIT:
TSN has one now too, but neither is updated to the bleeding edge and ESPN’s looks better if I’m honest.

There are some unusual lockout solutions coming out of the woodworks:

Now for everyone who wants to say, “What the hell are the players doing, fleeing overseas, playing pick-up games, why aren’t they working on playing real games in the NHL?” Well, frankly it’s out of their hands now. Now that we’re into the lockout it all comes down to Bettman-Daly and Fehr-Fehr, the individual Players aren’t allowed anywhere near the Owners and vice-versa, now it’s time for the representatives to take care of business, it’s as simple as that.

My one piece of actual analysis for the day is this: Sidney Crosby is either going to sign with Magnitogorsk or he’s not signing anywhere. So far, none of Sid’s friends have signed overseas, except for Geno, and I think Sid would relish the opportunity to be Geno’s foil in terms of popularity and role on the team. But there’s a good chance that Sid will elect to stay home and close to the negotiations, I did just say that he can’t get too close, however, his speech from last week is endemic of how involved he wants to be to negotiations and if he felt that his voice could get things done, I don’t expect that he would rather do that than make some more money that he doesn’t need.

But then again, we’ll probably here that he’s signing with the Belfast Giants tomorrow morning and everything I just said was shit.

Go lockout.


Let’s Ring in the Lockout by Spending Silly Money (Or Exactly What the Owners are So Determined to Do Away With)

Well the NHL will be locking out players at 11:59PM tonight. Before they do that though many Owners have made last ditch efforts to pay exorbitant contracts to their players to lock them up for a while.

The lockout is upon us. My advice is to not get all worked up about it. Yes, it sucks, but if you stay cool throughout the situation, it won’t be as bad. With that said, a little media to help you pass the time…


Lockout Thoughts: The End is Nigh 2: Thus Spoke Crosby

I don’t know if there will ever be a satisfactory CBA arrangement for the NHL under its current 30 team structure. 30 teams is just too many, and the burden of that sits on the League itself.

When it comes to the percentage of seats filled at home games, there’s no arguing the point that the expansion and relocation markets from the 90s and 00s are the worst at actually filling seats. I’ve used this source before, but here’s the bottom 10 in terms of percentage of seats filled this last season in the NHL.

Only two of the teams on this list weren’t relocated or constituted as new expansion teams within the last 20 years: the Devils and the Islanders. The Islanders are eternally plagued by a bad team, horrible arena, and incompetent ownership. The Devils are unfortunately located in Newark, New Jersey. The only recent expansion teams that didn’t make this list: Ottawa Senators, San Jose Sharks, Minnesota Wild, and Winnipeg Jets. Except for San Jose all three other teams are in traditional hockey markets, Minnesota isn’t called “The State of Hockey” without reason.

Thus, it’s the small market teams who have the most to lose, they can’t give away their tickets, and as such they don’t have any money to pay for players. We are not advocating that the Cap should be removed, but when you look at it, there is no way that simply cutting player salary expenditures are going to help the league fix attendance problems in the American South.

I don’t understand how the Owners can be so united in their efforts: it is only because of the prosperity of the large market teams that the small market teams need to spend so much in order to be cap compliant. In a very literal sense it is the 8 NHL teams that somehow managed to average over 100% attendance over the entire season who have driven up the revenues from which the salary cap is based.

Now we’ll move onto Sid’s speech and comments: basically, everything written above is what he meant to say in his speech. Although at one point he started talking about how hard he had been training this offseason to get ready for a season that is probably not going to start when it ought to. As a Pens fan that might be the hardest bit to swallow. You just get the sense that Crosby just has a quiet determination to dominate the league this year. It’ll suck if that league ends up being the KHL.

As with Fehr’s speech I didn’t see it live but it really seems like the Players are trying to sow the seeds of discontent between the Big Money Owners and the less fortunate. To be sure, this tactic just comes off as tired.

To reiterate the historical context yet again, when Fehr organized the MLBPA strike, the MLB owners were a divided group, on one hand there were teams like the Yankees that wanted to win at any cost, on the other hand there were small market teams like the Brewers who couldn’t afford big stars and just wanted to stop losing money every season. Fehr came along at the perfect time and drove a huge stake between them he got the small market teams to concede to no limits on contracts, and he convinced the big market teams to give the small market teams money so they would stop losing it. It worked beautifully back then, but no matter what he’s tried, the same tactic hasn’t worked with the NHL owners.

Hey, d’you see what I did there, it says “NO”?!?!

That was the key to Bettman’s conference which occurred a couple hours after the Players. The Owners had been in meetings while the PA made their appeal. During the Owners meetings, all 30 Owners voted unanimously to allow Bettman to lock out the league on Saturday. This shouldn’t come as a surprise to anyone. Yes, James Dolan, owner of the Rangers said that he would be interested in hearing more from the PA, and yes Mario and Burkle don’t seem the sort to demand such things from the players, but again, the Owners are just as unified in this as the Players.

So what it all means is that we’re headed for a lockout. I really believe that this can be a contained lockout though. If each side can make one meaningful concession to the other I see no reason why the season can’t start on time. In a worst case scenario they should have the ability to be playing by Thanksgiving. Right now the big question is if either side will make that one meaningful concession.


Lockout Thoughts: Judgment Day

Every post we’ve done in the last month has dealt with the negotiations between the Owners and the Players. Today could be the last time they meet before the lockout becomes a reality. The word “lockout” has a really dirty connotation to fans of the NHL, and with good reason, but as we said recently, even if the Players get locked out on Saturday, that may not be the end of the world.

Everywhere on the Internets, Players have been reiterating their desire to work after the September 15 deadline. This wasn’t the case in 2004-05 when the PA and the Owners didn’t talk to one another until months after the lockout began.

Over 300 players are expected to show up and talk with the Owners today. That’s almost half of the league. The fear, as far as I can see, is that with so many players coming together, it’s not to say “Hey we’re all happy to take a 12% pay cut!” More than likely it’s an effort to show the “force” behind the PA at the expense of the Owners. That’s not good.

If that really is the Players’ intention, I’m going to be heartbroken, I don’t want to see a mass demonstration from the Players, I want to see them working with the Owners to come to a resolution that works for both sides and guarantees that I’m watching the Penguins demolish the Islanders in exactly one month’s time. We’ll have more after the Players and Owners get together today (should be at 11:30.

(Also, huge stick tap to thePensblog for the love in their most recent Link City post. If you don’t read them, you’re crazy.)


How Does a Lockout Affect Me?

Last night the NHLPA distributed a memo to all of the players,it is titled “How Does a Lockout Affect Me?” Woo. That should tell you about all you need to know about where the state of CBA talks are right now. There are some interesting things in the memo, we’ll take a look at them, but again, this is more of a comment on the likelihood of a lockout than it is to breakdown an obscure piece of union literature.

  • Something that I really didn’t know is that the Players, including all of the guys who are on long term injured reserve, like Chris Pronger and Marc Savard, will get paid over the course of the lockout.
  • If, however, a player gets injured during a lockout—if they are playing in another league or whatever—they will not be eligible to receive their NHL paycheck until they are proven fit to play again. In addition, after the lockout ends, the team could assess additional penalties against the player who got hurt; this includes getting scratched or paying a fine to the team.
  • One thing that is really interesting is that a lockout could prevent most of this year’s top draft picks from playing in the NHL at all this year. If the lockout were to go past the normal cutoff to send players back to their CHL team (which happens in the 9th game of the NHL season), the NHL owners would have to consider whether or not it was worth it to risk sitting on their new top draft pick for an entire season that may or may not be played, or sending the player back to the CHL. Once back in the CHL, that player could not be called back up to the NHL team except on a one-game emergency basis.
  • It is true that the really big time prospects, Nail Yakupov, Alex Galchenyuk, Ryan Murray, could choose to do like other NHL players and go to Europe to play. But if you’re an owner are you willing to let the future of your franchise go to a league that can choose to pay them way more money, and hope they’ll come back?

So that’s that. I mean it isn’t necessarily groundbreaking, but the rules are perhaps different than what we thought. Of course that’s not the entirety of interesting or boneheaded comments to come from the NHL today.

Bill Daly, the deputy NHL commissioner, had some slightly controversial remarks regarding the PA:

I don’t think panic is right terminology, I hope no one is panicked. Having said that I do believe, based on the response we got on Friday, the concern we had about Sept. 15 not being a real deadline for the players and players association is probably more likely to be accurate. They certainly aren’t acting as if it’s a deadline.

This is the first time an NHL representative has really attempted to cast the PA in a bad light. I’m not going to make a big deal about this. This is a quote out of context, and it more refers to the fact that both sides know that there is flexibility beyond the specific September 15 date. I think Daly was jabbing at the media and fans who seem to be constantly on the verge of forgetting.

Donald Fehr came out and said as much—that the Players believe that September 15 is an important date, but they know that there are other things at stake. Right now I think it is important for the fans to consider that we won’t really be “missing” the NHL until October 12.

We ain’t dickin around.

Sources all around the Internet have been saying that the Players intend to resume talks with the Owners next week and that almost all of the players expect to turn out for such talks. That’s good. Yes, it sucks that there haven’t been any negotiations at all this entire week, but given that neither side has been especially tolerant of the other yet, taking a week off to get a fresh reset on the situation could be just what the league needed.

Finally, both Gary Bettman and Daly will not take their annual salaries for this season until the CBA is resolved. That’s nice of them, but given that Bettman makes $8 million a year and Daly still probably makes a considerable percentage of that, this isn’t really a powerful act of selflessness.

Big praise to Kevin Allen for all of these stories. Go hockey.


The Counterproposal, Part 3: Dead

You’ve probably heard: the Players basically walked out of negotiations with the Owners on Friday. Wonderful.

Donald Fehr had this to say as regards the “Player’s decision” to walk away from the negotiations on Friday:

“The response that was made to us is that if the players are not prepared to agree to an immediate reset in their aggregate salary levels, that is to say, as we understand it, a meaningful, absolute reduction in the players’ share in dollar terms for next year as compared to last year, that they [the Owners] see no point in discussing or responding to the proposals that we put forward at the meeting today.”

What it means is that the Owners won’t seriously consider anything the Players say unless the Players agree to a greatly reduced salary cap. I hate to say that I was right, but I did say that the PA was really going to need to consider the Owners’ projected salary cap figure of $58 million. This seems like the last straw in negotiations, at least before the September 15 lockout date. That sucks. I don’t know what else to say.

A lot of people have been advocating, and I think correctly, not to blindly kick and scream about what GARY BETTMAN is trying to do to the league, that might be fair, he is literally only the mouthpiece of the Owners, but here’s what he had to say:

“What I thought was starting as a promising week after we made our substantial counterproposal on Tuesday ends, I guess you can say, in disappointment.”

No doubt that Bettman is paid millions to take the brunt of fan discontent so that the Owners don’t have to, and his official position in these negotiations has been nothing but what the Owners have made him say. Despite that, you have to admit that he loves playing that villain role and that’s exactly what the above comment proves. Unlike the players, PA reps, officials, coaches, arena workers, and others—Bettman still gets paid whether the NHL is playing games or not. He could have said, “Well unfortunately, our sides are still very far apart, but we’re going to keep working,” instead he’s expressing some smug level of satisfaction with the state of things and I’m pretty sure that’s his own words, not something that the Owners asked him to say.

So where does this leave us? Well I don’t know. Two weeks til September 15, that ought to be plenty of time if the two sides are willing to work together, but right now that’s the biggest issue. You almost get the sense that the PA needs more from the fans—we need to absolutely stop supporting the owners—no merchandise purchases, don’t buy any tickets, and be as annoying as hell on social media outlets. The problem is that these things won’t really start to matter until after September 15. John Buccigross had a strong stream of consciousness the other day about how the advent of instant gratification and the rise of social media will prevent the Owners from truly carrying out a long lockout, because they won’t be able to escape the ire of the fans. The key is that the fans need to deliver on that promise.

 

Some other actual hockey news:

  • The Pens signed Eric Tangradi, Brian Strait, Robert Bortuzzo, and Alex Grant to one year, two-way deals. Tangradi will get $726,000, Strait $605,000, and the other two at the league minimum $525,000.
    • This is weird because I could have sworn that Strait already signed a new deal at the early part of the offseason. Either way, I’m really glad that he signed a 2-way deal, this way he can be the first call-up from WBS without fear that he’ll get claimed off of waivers if his services should no longer be needed at the NHL level.
    • Tangradi’s contract is clearly a “show-me” contract, you don’t pay an unproven 23-year old that much to play sparingly and on the 4th line. I won’t bore you with more “Tangradi Potential” puns, but he’s been called the “Future Winger for Sid” for 4 years, in a (hopeful) season where the Pens likely won’t be able to buy a serious winger upgrade at the deadline, this is do or die.
    • Bortuzzo has made a few starts in the NHL and I felt that he looked just as good as Despres or Strait who are ahead of him on the depth chart.
    • Grant has been highly touted in the past but I think he’s had a lot of injuries, but again I’m not going to complain about a lot of young, competent defensemen in the system.
  • The Oilers have thrown their hat into the race to sign all of their young players before September 15: they’ve come to terms with both Jordan Eberle and Taylor Hall, Eberle got 6-years, $6 million, Hall gets 7-years, $6 million per. A lot of people are getting super worked up about teams who continue to sign guys to long contracts while the Owners as a whole want to limit contract lengths. The fact of the matter is that if this was next year and Malkin and Letang were eligible for new contracts the Pens would have locked them up for life, but we’re still a year away from that. Further, who knows if contract lengths are going to get limited—as I said last time, if the Players can concede on the salary cap, I really feel like they can get a lot of other things they want.
  • Speaking of Geno, Mike wrote a solid piece about him that challenges if he would come back to Pittsburgh in the event of a long-term lockout. It’s well-reasoned but we don’t have anything to fear honestly. He loves Pittsburgh, he’s said time and again that he wants to play in Pittsburgh, play in the NHL, and he did happen to sneak himself out of Russia illegally in order to make that happen. Further, with another season similar to this past year, Geno will be in excellent shape to become the NHL’s first $10 million man, he’ll be back.