League, players commence labor talks

NHL owners and players yesterday ended more than six months of verbal sniping with a productive, 31/2-hour meeting on the league’s fractious labor situation.

None of the sport’s pressing economic issues was resolved during the meeting in Toronto, but both the league and the NHL Players Association afterward described the session as a frank exchange of views and one that could set a more positive tone for the spring and summer.

The two sides last met formally on the collective bargaining agreement Oct.1, and the intervening period had been marked by constant talk about an owners’ lockout and ever-increasing threats by both camps to fight indefinitely against the other side’s bargaining platform.

Management desperately wants a salary cap or some type of similar structure to link revenues and expenses. Players are fervently protective of the current market system, which has more than tripled average salaries in the last 15 years. As a result, player salaries dominated yesterday’s meeting.

“This was probably the most focused discussion on these issues that we’ve had to date,” said Bill Daly, NHL executive vice president. “We had a very substantiative discussion on our issues, and I think we made some good strides to getting this [negotiating] process started again.”

The stakes for the labor talks remain critical. NHL clubs collectively lost nearly $273million during the 2002-03 season, and several franchises either have declared bankruptcy in recent years or narrowly avoided such a state. Player salaries consume 75 percent of league revenues, according to former U.S. Securities and Exchange Commission chairman Arthur Levitt, far more than any other major sports league. Fiscally driven roster purges, such as the one conducted by Washington this past season, are becoming more common. Several clubs are cutting ticket prices to bolster attendance.

Furthermore, TV ratings remain minuscule compared to other prominent sports, and an extended work stoppage this fall only will depress viewership further, at least in the short term.

The current labor pact expires Sept.15. The next set of labor talks is scheduled for May24-25.

“We still haven’t gotten across the threshold issue, in that the league wants a salary cap, and found some common ground there,” said Ted Saskin, senior director of business affairs for the union. “Our position is quite clear on this issue. But we are having dialogue, and having dialogue is hopefully a good thing.”

NHL commissioner Gary Bettman and Bob Goodenow, executive director of the players association, both attended yesterday’s meeting and declined to comment afterward.

Besides the fundamental economic issues, the two sides are also considering a reduction of the regular season by 10 games to 72. While not a topic in yesterday’s talks, the move could ease physical strain on players and allow teams to schedule games on days more popular with fans, such as Fridays and Saturdays.

The question is whether management would seek broad-based pay reductions for players to match the shortened schedule. The NHL regular season has not been as short as 72 games since 1967.

“I think they’re on to something here. This is something worth pursuing,” said Marc Ganis, a Chicago-based sports consultant. “The schedule has become excessive and convoluted to the point of the league nearly trivializing itself. The playoffs are totally different because every game, every shift matters. That’s where the NHL needs to go.”