clock menu more-arrow no yes

Filed under:

NHL Lockout 2012: Salary Cap May Be Eliminated, Luxury Tax Instituted

As negotiations continue toward a new Collective Bargaining Agreement in the NHL, the league and the NHL Players Association are beginning to get creative, as the two sides work to desperately avoid another lockout.

According to the New York Daily News, one proposal by the union is to eliminate the salary cap, and install a luxury tax to facilitate revenue sharing between teams.

With just over a month until the threatened lockout of the NHL, the union is planning to put an "alternative view," on the negotiating table Tuesday, likely to include eliminating the salary cap and instituting a luxury tax to create revenue sharing between clubs. It will definitely be a vastly different proposal for a Collective Bargaining Agreement than the one they received from the NHL on July 13.

Speaking to reporters in Toronto after a meeting to discuss "business issues," NHL Players Association head Donald Fehr would not call Tuesday's presentation a counter proposal.

"I think (a counter proposal) is within the framework of what the other guy said. This is a different approach," Fehr said.

As the Daily News points out, the proposal is similar to Major League Baseball's salary structure, which Fehr was behind when he was head of Major League Baseball's Players Association.

Players and teams alike could benefit from the proposed idea, as the players could see an increase in salary without a cap, and smaller market teams could earn revenue sharing from the larger market teams.


Follow @sbnation | Like SB Nation on Facebook | Subscribe to SB Nation YouTube


Photographs by jamesbrandon, jdtornow, phlezk, flygraphix, mcdlttx, tomasland, and literalbarrage used in background montage under Creative Commons. Thank you.