Wednesday, February 16, 2005

Crunch time

Another set of letters went back and forth late last night between Gary Bettman and Bob Goodenow, with Bettman rejecting Goodenow's "final" offer and Goodenow arguing with Bettman's logic.

Dear Bob:

It was disappointing to receive the fax of your "final" offer.

We would have been prepared to propose and negotiate over a "de-linked" maximum team salary sooner, but the NHLPA had been consistent in stating that the players would never accept a salary cap. We only learned in the mediation process on Sunday that you would entertain such an offer, which is why we asked for a meeting yesterday and made the "de-linked" proposal.

If every team spent to the $49 million level you have proposed, total player compensation would exceed what we spent last season and, assuming for discussion purposes, there was no damage to the game, our player compensation costs would exceed 75% of revenues. We cannot afford your proposal.

Our offer of earlier today was a $75 million increase over the offer we made yesterday. I hope you will accept it, and that we can move forward and negotiate the myriad of other issues that need to be addressed.

Sincerely,
Gary B. Bettman
Commissioner

Dear Gary,

This is in reply to your most recent letter.

1. Your claim that the Clubs ''cannot afford'' our proposal is based on your hypothetical fear of what would happen if every team spent to the $49 million level the Players have proposed. The notion that ''every Club'' will spend at the $49 million level is contradicted by years of actual payroll experience under the old CBA system and by Exhibit 12 of your December 14 document (attached for your recollection), in which you projected 24 teams well below the $49 million level after the rollback. Further, this experience is based on an environment without revenue sharing, taxes on team payrolls and the numerous new system restrictions.

2. Based on your own calculations from Exhibit 12, over 21 Clubs are spending significantly less than your team payroll limit number of $42.5 million. I am at a loss to understand how you suggest your offer earlier today represents a $75 million dollar increase when it only impacts the spending of nine teams!

You will receive nothing further from us.

Regards,
Robert W. Goodenow
Executive Director & General Counsel

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