Analyzing the NHL's Upcoming Labor Dispute and What It Means for Next Season

After all the growth that the NHL has enjoyed since a lockout destroyed the 2004-05 season, having another one take games away from the 2012-13 season would be the worst thing that could possibly happen to hockey.

The league and the NHLPA will talk in the near future about a new CBA with the current one set to expire on September 15.

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Donald Fehr says formal CBA negotiations will start "very quickly" after NHLPA meetings end Wednesday.

— Chris Johnston (@reporterchris) June 25, 2012"

The game has changed since 2005 and with revenues higher than they were back then, the owners and players will want what they believe is their fair share.

Let's look at the issues affecting the upcoming NHL labor dispute and what it means for next season.

Salary Cap/Contract Issues

Salary Cap

The salary cap was one major addition to the game that came out of the lockout in 2005. In addition to the salary cap, there was also a salary floor put in as well, meaning that every team must spend a minimum amount on player salaries each season.

While the idea of a salary cap floor is a great one and ensures that every team has to spend a certain amount to attempt to be competitive, the actual number of the cap floor could be an issue. Forcing teams to spend a certain amount of money when they cannot afford to is a terrible idea and doesn't help anyone.

Even though revenues are up since the lockout, not every team is having success. Following any changes to the salary cap, including the number it will be going forward as well as the floor number will be interesting to watch during negotiations.

Other salary issues that might be discussed could involve teams being able to bury contracts in the minors and taking salary cap hits off the books when players don't or refuse to play (Tim Thomas, for example).

Contracts

Contracts will also be a topic of discussion during the negotiations. One issue could be the addition of an amnesty clause, which could allow teams to remove a burdensome contract off their books for salary cap relief. The player who is "amnestied" would become a free agent.

The NBA's new CBA included an amnesty clause and ever since that happened many hockey fans have wondered if that clause could work in the NHL. In short, it would help the league and should be part of the new CBA.

Realignment

The NHLPA rejected a new realignment plan that was finished in December, and the topic will likely be talked about again during negotiations. The NHL doesn't need realignment, but there are some scheduling issues that can be made instead of realignment. It's foolish to have teams travel much more than needed throughout the season, like the Winnipeg Jets, who play in the Southeast division despite being located in Manitoba.

Realignment shouldn't be a major issue in the upcoming labor dispute but it will be discussed. While the possibility of a new alignment of teams is exciting, it's hard to imagine either side making this issue one of the more important ones on the table. There are more important things to address.

Revenue

Revenue will be a major part of the negotiations between the union and the players. The players currently receive a bigger piece of the revenue pie than the owners.

We often see the battle over revenue as the most heated debate in a sports lockout. You can bet that the owners will want to take some of this advantage away from the players and make the revenue sharing closer to 50-50.

With revenue up significantly since the first season post-lockout, the battle over revenue could be intense.

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NHL revenue jumps from $2.1 billion in 2006 to $3.3 billion in 2012. Good luck crying poor this time, team owners. Well, most of you...

— Spector's Hockey (@SpectorsHockey) June 19, 2012"

Revenue sharing could also be a major part of the negotiations. Revenue sharing allows teams that are struggling financially to get money from teams who aren't. This is an attempt at making the sport more competitive.

The players have the revenue edge right now, and their willingness to give up some of that advantage could determine whether we are headed for another lockout.

NHL in the Olympics

The NHL players drive the hockey portion of the Winter Olympic Games, and even though the sport could be exciting without NHL players participating, the interest in Olympic hockey would likely lessen if players like Sidney Crosby, Zach Parise and Alexander Ovechkin aren't able to play.

Teams don't want stars getting hurt in the Olympics, and they also want to avoid players getting tired in the middle of the season after playing two weeks of intensely competitive hockey. This is one issue that the players will certainly fight hard over because nearly everyone wants to represent his country on the Olympic level.

What Does the Future Hold?

Even though the possibility of a lockout seems unimaginable after the loss of the 2004-05 season, this is a league with owners who were willing to lose an entire season to construct a proper CBA in 2005.

There certainly is a chance that we could see a lockout of some kind next year and lose games. While it's possible that a lack of a CBA might not affect the season from starting, this scenario seems unlikely.

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NHLPA executive director Donald Fehr said it's conceivable NHL season could start without a new CBA. #Blackhawks

— Chris Kuc (@ChrisKuc) June 25, 2012"

Revenue will be a major battle that the owners will want to win, and as always, salary issues will be a primary focus of the negotiations. The sport is growing financially and all parties will want a piece of the pie.

One positive going into these negotiations is that there probably won't be any major overhauls to the current system that will take a lot of time to discuss and create, such as the salary cap.

There is a lot of money and fan interest at stake with the possible threat of a lockout, and if the NHL and the players want to continue the growth of the game, they must avoid missing games and get a deal done as soon as possible.

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