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NHL Players Won't Reopen Collective Bargaining Agreement

It's All Star Weekend in the NHL, with the league's All Star Game slated to be played before a capacity crowd in Montreal tomorrow night. Montreal fans made sure that they would have a rooting interest in what is traditionally one of professional sport's least realistic all star games by stuffing the ballot box and electing four Canadiens to the East's starting lineup.

The Players Association did their part to kick the weekend off with good feelings by announcing that the NHLPA's executive board had unanimously voted not to re-open the collective bargaining agreement, thus ensuring that it will remain in effect through 2011. The NHLPA had a one time option to re-open the agreement in September, 2009. The players have the option of extending the collective bargaining agreement for one additional year. The players had understandable concerns about re-opening the agreement in the midst of this economy with at least two teams, the Coyotes and Predators, in financial difficulties.

Here's a little video from the NHL to get ready for tonight's Young Stars Showdown:

With the economy in tatters and tickets sales in some markets falling, there is obvious concern about the ability of the league to continue to increase revenue year after year. As this year's revenue is mostly booked, i.e. season tickets have been sold, sponsorships have been sold and TV money has been contracted, the impact of the economy won't really be visible until the playoffs. Therefore, the effects of the recession on the league's overall revenue for salary cap purposes won't really be felt until the 2010-2011 season, as the revenue drop will first be really recognized. Don't be surprised to see the NHLPA extend the CBA by one year sometime next season.

Full post as published by Sports Biz on January 24, 2009 (boomark / email).