New York Post - 13.03.2020

New York Post, Friday, March 13, 2020

nypost.com

CASHING OUT

N

o group of major league

athletes in North America is

more vulnerable to the eco-

nomic ramifications of the coro-

navirus’ impact on sports than

hockey players.

That is why I believe the NHL,

with substantial input from the

NHL Players’ Association, will

attempt to be as creative as possi-

ble in either saving some remain-

ing portion of the regular season

that would precede a somewhat

traditional playoff format or in

creating an expanded playoff

tournament.

Because generating revenue is

critical not only to the athletes’

short-term needs, but for the

long-term sustainability of the

NHL’s hard-cap league. How ugly

do you think it will get if the cap

is reduced next season because

of this pandemic?

According to individuals with

ties to both management and la-

bor, it was unclear as of Thurs-

day evening whether teams

would continue to pay players

during the “pause” in the season

that was announced Thursday

afternoon.

“No details about anything,

yet,” one front office executive

texted, while an agent said, “Ha-

ven’t been told.”

Section 17 of the Standard

Player’s Contract grants teams

permission to withhold pay if the

NHL, “suspend[s], cease[s] or re-

duce[s] operations ... because of

any condition arising from a state

of war or other cause beyond the

control of the League ...”

But the NHL, run by attorneys

who understand the meaning of

terminology, chose to use the

word, “pause,” rather than, “sus-

pend.” And we are told there are

those within the NHLPA who be-

lieve that the teams will be obli-

gated to continue paying their

players on a twice-monthly basis

through the

scheduled end

of the season on

April 4.

The problem for the players is

that even if they do get paid dur-

ing the shutdown, they’d likely

have to return all of it if the

league does not reopen or cannot

generate commensurate revenues

upon reopening. The players are

locked into a 50-50 partnership

with the league. Approximately

15 percent of the regular season

remains with 100 percent of post-

season revenue outstanding.

If the season is not resumed, or

if revenues do not meet projec-

tions upon reopening, then not

only would players likely receive

no refund of the 14 percent es-

crow deduction that has been ap-

plied to their paychecks this sea-

son, they’d all but certainly wind

up giving money back to the

league to correspond to a 50-50

split.

This is what partnership is all

about.

Next year’s

cap is based on a

formula that re-

lies on this

year’s revenue. If the season is

canceled, the league and union

could agree to set the cap at, say,

this year’s $81.5 million number if

both parties envision an immedi-

ate rebound to traditional con-

sumer habits and ticket-buying

behavior.

But maybe not. Regardless of a

bargained number, no one should

expect the PA to use an escalator.

And a flat cap — if that — would

wreak havoc on the league in

which half of the teams are using

long-term injury exemptions to

be cap compliant.

Indeed, there is a possibility

the league and union could adopt

an amnesty buyout policy for this

offseason in which buyouts are

not applied against the cap, as

was the case coming out of each

of the past two Owners’ Lock-

outs.

In this league, it is all about the

cap and to a huge number of

players in the union, it is all

about escrow. Which is why, if

pro sports return to somewhat

normal within the next two-to-

three months, the NHL is going

to want and need to generate a

splash for the playoffs to gener-

ate excitement and revenue.

Hard to work up enthusiasm for a

May 14, Game 81 between say, the

Ducks and Kings.

Which is why I can envision

adoption of an expanded tourna-

ment, including perhaps 20-24

teams, featuring knockout

rounds and whatever other bells

and whistles the league could

create in order to attract interest

across the continent. As the Red

Wings are the only team to have

been eliminated from playoff

contention, the league could

adopt a 30-team invitational.

This would obviously not be

about the integrity of the compe-

tition — and why would it be

now, when it never is? — but

about maximizing revenue. Hey,

maybe bid out the final or the fi-

nal two rounds to a neutral site

willing to pay enormous spon-

sorship dollars for the tourna-

ment. The final, you realize,

could be played in the middle of

July.

The NFL moved to a 16-team

Super Bowl tournament follow-

ing its 1982 strike season. Things

like this can be done. More play-

off teams, more playoff games,

more playoff revenue, healthier

cap.

Of course, nobody knows. But

we do know that the NHL, which

was the second pro league to an-

nounce a “pause,” is also the

league that would be affected the

most seriously if forced to cancel

it all.

[email protected]

Larry Brooks

CORONAVIRUS

IN HOCKEY

Where they’re at

The current NHL standings

EASTERN

CONFERENCE

PLAYOFF GLANCE

METROPOLITAN DIVISION

POS. TEAM PTS GR

M1 Capitals 90 13

M2 Flyers 89 13

M3 Penguins 86 13

ATLANTIC DIVISION

POS. TEAM PTS GR

A1 Bruins 100 12

A2 Lightning 92 12

A3 MapleLeafs 81 12

WILDCARD

POS. TEAM PTS GR

WC1 Hurricanes 81 14

WC2 Blue Jackets 81 12

Islanders 80 14

Rangers 79 12

Panthers 78 13

Canadiens 71 11

FIRST-ROUND MATCHUPS

(As of this point)

M1 Capitalsvs. WC1 Hurricanes

M2 Flyersvs. M3 Penguins

A1 Bruinsvs. WC2 Blue Jackets

A2 Lightningvs. A3 MapleLeafs

WESTERN

CONFERENCE

CENTRAL DIVISION

POS. TEAM PTS GR

C1 Blues 94 11

C2 Avalanche 92 12

C3 Stars 82 13

PACIFIC DIVISION

POS. TEAM PTS GR

P1 G. Knights 86 11

P2 Oilers 83 11

P3 Flames 79 12

WILDCARD

POS. TEAM PTS GR

WC1 Jets 80 11

WC2 Predators 78 13

Canucks 78 13

Wild 77 13

FIRST-ROUND MATCHUPS

(As of this point)

C1 Bluesvs. W2 Predators

C2 Avalanchevs. C3 Stars

P1 G. Knightsvs. WC1 Jets

P2 Oilersvs. P3 Flames

Packing up: Brady Munger, the assistant equipment manager of the Red Wings, gets his team’s gear

together after Thursday’s game against the Capitals was postponed. Getty Images