The National Hockey League will reject last week's National Hockey League Players' Association proposal on Tuesday, according to The Sports Network of Canada.
A confidential memorandum that was obtained by TSN displays the league's reaction to the union's proposal, which was offered during a meeting last Thursday in Toronto. The memo was sent to the governors and alternate governors of all 30 teams.
"In sum, we believe the Union's Dec. 9 CBA proposal, while offering necessary and significant short-term financial relief, falls well short of providing the fundamental systemic changes that are required to ensure that overall league economics remain in sync on a going-forward basis," NHL executive vice president Bill Daly wrote in the memo. <TABLE cellSpacing=0 cellPadding=0 align=right border=0><TBODY><TR><TD></TD></TR></TBODY></TABLE>
"While the immediate 'rollback' of 24 percent offered by the Union would materially improve league economics for the 2004-05 season, there is virtually nothing in the Union's proposal that would prevent the dollars 'saved' from being re-directed right back into the player compensation system, such that the league's overall financial losses would approach current levels in only a matter of a couple of years."
The league and union are scheduled to meet Tuesday in Toronto, at which time the NHL is expected to issue a counter-proposal. The deal that was proposed by the NHLPA last week featured an immediate 24 percent rollback of player salaries, a significant increase from the 10 percent that was rejected in September. Thursday's proposal did not, however, feature a salary cap, or the assurance of "cost certainty" that is being sought by the league.
The lockout reached its 89th day on Monday. Last Thursday's meeting was the first between the two sides of this labor strife since September 9.
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A confidential memorandum that was obtained by TSN displays the league's reaction to the union's proposal, which was offered during a meeting last Thursday in Toronto. The memo was sent to the governors and alternate governors of all 30 teams.
"In sum, we believe the Union's Dec. 9 CBA proposal, while offering necessary and significant short-term financial relief, falls well short of providing the fundamental systemic changes that are required to ensure that overall league economics remain in sync on a going-forward basis," NHL executive vice president Bill Daly wrote in the memo. <TABLE cellSpacing=0 cellPadding=0 align=right border=0><TBODY><TR><TD></TD></TR></TBODY></TABLE>
"While the immediate 'rollback' of 24 percent offered by the Union would materially improve league economics for the 2004-05 season, there is virtually nothing in the Union's proposal that would prevent the dollars 'saved' from being re-directed right back into the player compensation system, such that the league's overall financial losses would approach current levels in only a matter of a couple of years."
The league and union are scheduled to meet Tuesday in Toronto, at which time the NHL is expected to issue a counter-proposal. The deal that was proposed by the NHLPA last week featured an immediate 24 percent rollback of player salaries, a significant increase from the 10 percent that was rejected in September. Thursday's proposal did not, however, feature a salary cap, or the assurance of "cost certainty" that is being sought by the league.
The lockout reached its 89th day on Monday. Last Thursday's meeting was the first between the two sides of this labor strife since September 9.
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