Here we go again with another sad day for hockey fans. The 2012 NHL lockout has sure been unfortunate for players and fans alike with limited information as to if or when the season will start. It’s been 8 years since the last 2004-05 NHL lockouts that canceled all of the games for the season and forced the NHL All Star game to be played in non-Winter Olympic years. Other recent lockouts happened during the 1992 NHL strike postponing 30 games and the 1994-95 NHL lockout with canceled a lot of the games shortening the season to 48 games without inter-conference games.
Why is this happening? Well, the short answer is of course money. With many of the teams in the NHL lacking in finances and many others just breaking even, a majority of the revenues comes from the top ten franchises. The collective bargaining of five items that need resolution before the season starts are: Player’s Share, Salary cap “Floor”, Guaranteed Contract, Escrow Payment, and Revenue Sharing.
During the 2005 NHL lockout negotiations a salary cap was established ensuring a salary cap floor. A percentage of the NHL revenues were agreed upon and the player’s share began at 54% in 2005. As leagues revenues increased over the years the percentage has now reached an all time high for the 2010-11 season at 57%. The NHL feels that player’s share is too high and compared to other professional sporting franchises the percentage is high. Continue reading