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How Salary Arbitration Works....

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Old
07-19-2006, 04:26 PM
  #1
SupaNuckFan
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How Salary Arbitration Works....

So arbitrations start tomorrow with Daniel Briere's. I am trying to figure out how it works.

Is it something like:
  • both parties walk into the arbitration and give a dollar figure
  • they each present their arguement supporting their proposed salary
  • the arbitrator has 48 hours to decide, he chooses one of the two propsed salaries?
  • the team has 1 week to sign the player to a one year deal for that amount
  • or the team can walk away leaving the player a UFA?
Can anybody confirm/add to this??

//I'm almost ready to try reading the CBA to figure this out
///My 1st post !!!!

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07-19-2006, 04:37 PM
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Andi
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Heya, welcome. From what I've read, the arbitrator usually picks a salary between the two dollar figures, and usually it's for a one year deal. The team can take it or leave it. If they leave it, the player becomes a UFA. I'm not sure about the 48 hours/1 week time frames.

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07-19-2006, 04:43 PM
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No One
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Quote:
Originally Posted by SupaNuckFan View Post
So arbitrations start tomorrow with Daniel Briere's. I am trying to figure out how it works.

Is it something like:
  • the arbitrator has 48 hours to decide, he chooses one of the two propsed salaries?
  • the team has 1 week to sign the player to a one year deal for that amount
  • or the team can walk away leaving the player a UFA?
Can anybody confirm/add to this??

//I'm almost ready to try reading the CBA to figure this out
///My 1st post !!!!
The arbiter can choose any salary he wants. It is usually a one year deal, however there are two year deals as well. I think it is still the team's call.

The team has 48 hours to accept the decision or "walk away".. Should the team walk away from a one year deal, the player is a UFA, and there are no longer matching rights for the team that walks away.

If the team "walks away" from a two year, I think the "walk away" takes effect before the 2nd year, therefore the player will be a UFA after one year.

Most of it is in Article 12 of the CBA.

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Old
07-19-2006, 04:46 PM
  #4
Hawker14
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the nhlpa and nhl use basically the same software to come up with the "comparable" players, so it's been common in the past for both to submit the same players. we'll see how it works now.



Quote:
from nhl.com

-- Entirely mutual (Players and Clubs have identical rights to request arbitration).

-- All Group 2 Players are eligible for Salary Arbitration. (Salary Arbitration is available with respect to all Players who have completed four (4) years in the Entry Level System and are not yet eligible for Unrestricted Free Agency.)

-- Non-requesting party has one-time "deferral right" on the following terms: (1) Player can "defer" Club's election of Salary Arbitration by accepting his Qualifying Offer; (2) Club can "defer" Player's election of Salary Arbitration by signing Player to a one-year contract at 105% of the Player's prior year's salary. This "deferral right" would not be exercisable by either a Player or Club with respect to a Player coming out of the Entry Level System.

-- Non-requesting party can elect term of 1, 2 or 3 years.

-- Both parties to Salary Arbitration proceeding have obligation to submit a list of up to five (5) Player comparables (exclusively from among the universe of contracts entered into by Group 2 Restricted Free Agents) prior to briefing, with each side having the ability to strike up to two (2) comparables from the other side's list.

-- Mutual "Walk-Away Rights" for Clubs and Players as follows: (1) Clubs can walk-away from Salary Arbitration Awards in return for which Players attain immediate free agency subject only to a Right to Match in favor of the Player's Old Club for contracts entered into for 90% or less than the value of the Award; (2) Players can walk-away from Salary Arbitration Awards and elect instead to accept a contract for 90% of their Qualifying Offer. "Walk-Away Rights" exercisable only by non-requesting party.

-- League has option to eliminate Salary Arbitration mechanism in its entirety at any time during the term of the Agreement by converting age of eligibility for Group 3 Free Agency to 28.

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Old
07-19-2006, 05:05 PM
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SupaNuckFan
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I just read most of article 12, here is an updated post which i believe to be accurate:

Quote:
Originally Posted by SupaNuckFan View Post
So arbitrations start tomorrow with Daniel Briere's. I am trying to figure out how it works.

Is it something like:
  • both parties submit their documentation and proposed salaries 48 hours prior to the commencment of the arbitration
  • both parties arrive at arbitration, the party who called the arbitration goes first
  • they each present their argument supporting their proposed salary (20 minutes presentation & max. 48 page documentation, stats, injury history etc.)
  • the arbitrator has 48 hours to decide, he chooses a salary between any of the two proposed salaries
  • the team has 48 hours to sign the player to a deal for that amount over the timeline specified (the 48 hours can be extended if the team has other arbitrations pending)
  • or either party can exercise the right to "walk away", if the team walks the player becomes a UFA (a team can only walk away from 1 of every 2 arbitrated decisions, if three players go 2 can be walked away from...) If the player walks he gets his qualifying offer. There are other limitations
Can anybody confirm/add to this??

there are many limitations on what can be in the documentation, ie. no video clips, no newspaper articles, no third party testimonials, no reference to the teams cap position or how the player fits into cap space, etc.

//I read some of the CBA to figure this out, Article 12 is interesting
///My 2nd post !!!!

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07-19-2006, 08:17 PM
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missK
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Did I miss a full list of all the players and hearing dates?

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07-19-2006, 08:26 PM
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kdb209
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Quote:
Originally Posted by hawker14 View Post
the nhlpa and nhl use basically the same software to come up with the "comparable" players, so it's been common in the past for both to submit the same players. we'll see how it works now.
I don't know where you found that on nhl.com, but it is full of mis-information.

Quote:
from nhl.com

-- Entirely mutual (Players and Clubs have identical rights to request arbitration).
Both sides can elect arbitration, but there are significant limits on team elected arbitration - a team may not elect to take more than two players to arbitration in a given year and a player may only be taken to arbitration by his club once in his career. There are no limits on a player electing arbitration.

Quote:
-- All Group 2 Players are eligible for Salary Arbitration. (Salary Arbitration is available with respect to all Players who have completed four (4) years in the Entry Level System and are not yet eligible for Unrestricted Free Agency.)
This is self contradictory. The max ELS contract is 3 years. A player comming off his ELS contract is a Group II RFA who is not eligible for arbitration.

Quote:
-- Non-requesting party has one-time "deferral right" on the following terms: (1) Player can "defer" Club's election of Salary Arbitration by accepting his Qualifying Offer; (2) Club can "defer" Player's election of Salary Arbitration by signing Player to a one-year contract at 105% of the Player's prior year's salary. This "deferral right" would not be exercisable by either a Player or Club with respect to a Player coming out of the Entry Level System.
There is no "one time deferral right".

A player is free to accept his QO (or negotiate any other deal with his club) prior to the arbitration hearing and award. A player earning >$1.5M may be taken to arbitration in lieu of receivening a QO. In that case, the player has no alternative of accepting a QO.

There is no mechanism to force a player to sign a 1 yr deal at 105% of the previous years salary to defer arbitration.
Quote:
-- Non-requesting party can elect term of 1, 2 or 3 years.
The non-requesting party can elect the term of either one or two years, subject to limitations. A player 1 yr away from UFA status cannot be awarded a two year deal. There is no such thing as a 3 yr arbitration award.
Quote:
-- Both parties to Salary Arbitration proceeding have obligation to submit a list of up to five (5) Player comparables (exclusively from among the universe of contracts entered into by Group 2 Restricted Free Agents) prior to briefing, with each side having the ability to strike up to two (2) comparables from the other side's list.
Nope. Nothing like this in the CBA. Both sides are required to submit a written brief (40 pages max) with their arguments, analyses, and comps, but there is no specific requirement for 5 comps.

Quote:
-- Mutual "Walk-Away Rights" for Clubs and Players as follows: (1) Clubs can walk-away from Salary Arbitration Awards in return for which Players attain immediate free agency subject only to a Right to Match in favor of the Player's Old Club for contracts entered into for 90% or less than the value of the Award; (2) Players can walk-away from Salary Arbitration Awards and elect instead to accept a contract for 90% of their Qualifying Offer. "Walk-Away Rights" exercisable only by non-requesting party.
There are no walk away rights for a player in a team elected arbitration.

There are limits to the number of team walk aways per year (based on the number of arbitration awards for the team). Only awards >$1.042,173 (indexed to avg player salary) are eligible for walk aways. In the case of a 1 yr arbitration award, the player will become a UFA - there is no longer any right to match (that was true inder the old CBA). In case of a 2 yr arbitration award, the walk away will reduce it to a 1yr award and the player will become a UFA at the completion of that 1 yr SPC.

Quote:
-- League has option to eliminate Salary Arbitration mechanism in its entirety at any time during the term of the Agreement by converting age of eligibility for Group 3 Free Agency to 28.
Nope. There is no such provision. There was a provision like this in the last CBA. Group III eligibility is already dropping to 28 next season and 27 yo the year after.

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Old
07-19-2006, 09:36 PM
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you're right. i posted the nhl's february'05 proposal. lol. my bad.

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07-19-2006, 10:37 PM
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Quote:
Originally Posted by No One View Post
The arbiter can choose any salary he wants. It is usually a one year deal, however there are two year deals as well. I think it is still the team's call.

I believe this was changed from how it worked previously in the old CBA. I think now the arbitrator can only select either what the teams or what the players want.

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07-19-2006, 10:51 PM
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Quote:
Originally Posted by jkrdevil View Post
I believe this was changed from how it worked previously in the old CBA. I think now the arbitrator can only select either what the teams or what the players want.
Nope, I believe that is incorrect.

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07-20-2006, 12:31 AM
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Originally Posted by missK View Post
Did I miss a full list of all the players and hearing dates?
http://www.tsn.ca/nhl/feature/?fid=7545&hubname=

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Old
07-20-2006, 06:26 AM
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missK
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Thanks!

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Old
07-20-2006, 05:05 PM
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Quote:
Originally Posted by jkrdevil View Post
I believe this was changed from how it worked previously in the old CBA. I think now the arbitrator can only select either what the teams or what the players want.
I remember hearing something along those lines as well, but when I skimmed through Article 12 at NHL.com I didn't see any mention of it. I think that would have been an interesting system - would have forced both sides to make a reasonable demand or else run the risk of having little chance of winning.

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