Why the NHL Actually Needs Another Lockout to Get Its Finances Straight

We understand full well that nobody would like to see another NHL lockout.

The damage was done when the 2004-05 season was completely wiped out when the NHL and NHL Players' Association failed to come close on an agreement that would have allowed the players to get back into uniform and play hockey.

Eight seasons later, the two sides have to hammer out another agreement and although it may be devastating to many owners, players and fans, another work stoppage may be in the offing.

After the first negotiating sessions, (French language) RDS reporter Renaud Lavoie and USA Today's Kevin Allen reported that the NHL was seeking to reduce the players' share of revenues to 46 percent overall. Under the current collective bargaining agreement, the players receive 57 percent of gross revenues.

While the owners' proposal was just the opener in the contract talks, it is not going to sit well with chief negotiator Donald Fehr. It indicates there is much work to do before the two sides are close to any kind of agreement.

Fehr, of course, is the former head of the Major League Baseball Players Association. Fehr is experienced and a strong defender of players' rights. However, he has matured over the years and he is not likely to exacerbate negotiations with harsh public statements.

That may not have always been the case with Fehr, but he is not likely to lose his cool just because management's initial salvo may be a bit hard to swallow.

Player agent Allan Walsh was quoted by the USA Today as saying the initial offer was "an all-out declaration of war against the players."

There are other financial issues (source: CSNChicago.com) that have to be addressed in the current negotiations. Those issues include extending the amount of time a player must stay with his original team before becoming a free agent, eliminating salary arbitration altogether, limiting new contracts to a term of five years and extending the term of rookie contracts from three to five years.

Currently, players are allowed to file for free agency following their 27th birthday. Ownership wants to keep players from filing for free-agent status until they have spent 10 years with their original team. For players who sign their first contract when they are 18, it would mean they would remain with their original team for one more season. However, for players who sign their initial contract after finishing their college careers at age 21, it would mean an additional four years of association with their original team.

The NHL owners may have a very difficult time selling their position to both the players and the public. According to the Montreal Gazette (through National Post.com), NHL revenues have increased from $2.2 billion in 2003-04 to $3.3 billion last year. While some teams may be struggling, it seems that owners don't want to recalculate how they divide their funds. Instead, they want to attack the players' share.

A lockout would hurt the sport of hockey. But what it would do is underscore each side's positions clearly. There would be no grey areas.

Then once an agreement is finally reached, it would have a stronger impact. It will either be the owners' sport or the players will be able to re-establish their own claim.

A lockout will establish a clear winner and eliminate the grumbling and loud whispers that come with compromise.