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NHL proposes 50-50 revenue split; other terms may be sticking points

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Entry-level contracts would be in effect for two years, instead of the current three, a move designed to postpone free agency and minimize the value of the second contracts that had escalated salary growth. In addition, teams also would be allowed to pay portions of players’ contracts after they trade those players, a practice not permitted now. The league offered to increase revenue sharing with small-market teams to $200 million, up from $150 million.

The union is expected to push back on the proposed five-year maximum for new contracts and the delaying of free agency. The proposal also would delay salary arbitration eligibility until after the player’s fifth season instead of the fourth, and would impose a maximum yearly variance of 5% within any contract. That provision is aimed at eliminating the lengthy, front-loaded contracts many teams devised to skirt salary cap restrictions in the previous labor agreement.

One or more of those elements could be altered to work in concert or separately. The union might also suggest a gradual drop of its share of hockey-related revenue instead of immediately going from 57% to 50%.

“I’ve been looking for a way to get these negotiations jump-started and if this does it, that would be great,” Donald Fehr, executive director of the NHL Players’ Assn., said in Toronto. “We’ll see, though.”

Allan Walsh of Octagon Hockey, a prominent player agent, said the proposal “marks the official start of negotiations toward a deal.” He added, “With an apparent deadline of Nov. 2 now in place to play a full 82-game regular season, the proposal represents a starting point toward getting the NHL back on the ice.

“I would caution everyone that we are now at the starting line, the NHL has wasted valuable time with ridiculous opening offers and the next seven days will reveal how serious the league is toward getting a new CBA to the finish line.”

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