|Overview: All capitalized terms in this document shall apply the definitions from the expired CBA. Except as modified by the provisions set forth in this summary, the expired CBA shall continue. #||ECONOMIC & SYSTEM ISSUES||DESCRIPTION|
|1.||Term||Ten-Year Agreement with mutual right to terminate after eight (8) years.|
|NHL shall have the first option to terminate, exercisable by no later than September 1, 2019. NHLPA shall have the second option to terminate, exercisable by no later than September 15, 2019.|
|Expiration date on September 15, 2022 unless otherwise terminated in accordance with the terms set out in this Agreement.|
|2.||HRR Accounting||Current HRR Accounting with review, update and enforcement of relevant Side Letters from the expired CBA.|
|3.||Applicable Players’ Share||For each year of the CBA, the Players’ Share shall be Fifty (50) percent of Actual HRR.|
|4.||No “Rollback”||Current SPCs will not be reduced, re-written or rolled back. Instead, all current Players’ SPCs will be retained at their current face value for the duration of their terms, subject to the operation of the escrow mechanism in the same manner as it worked under the expired CBA.
If any current SPCs have salaries for future years below the Minimum NHL Salary, they will be adjusted upwards to the Minimum NHL Salary in those years. In such cases, there will be a corresponding adjustment made to an SPC’s Averaged Amount as a result of the upward adjustment(s) to the Minimum NHL Salary. There shall be no “rollbacks” of current SPCs based on the application of the 20% Rule.
|5.||Transition Payments||With regard to the Transition Payments described below, the NHL and NHLPA shall discuss in good faith on or about February 28, 2013 the financial performance of the League (as a whole) to that point in the 2012/13 League Year, and shall endeavor to make estimates as to Initial and Final HRR and Player Escrow. Based upon those estimates, the parties shall consider alternative payment schedules with respect to the $300 million in Transition Payments and any payments that may be required to be made by the League at year-end on account of any Shortfall. Absent agreement between the parties by June 30, 2013, the following shall apply:
The League will pay a fixed amount of $300 million as “Transition Payments,” which will be payable on a deferred basis over three years:
• $100 million payable on the earlier of (i) the execution of the 2013/14 “Year-End HRR Resolution Letter” or (ii) October 21st, 2014;
• $100 million payable on the earlier of (i) the execution of the 2014/15 “Year-End HRR Resolution Letter” or (ii) October 21st, 2015; and
• $100 million payable on the earlier of (i) the execution of the 2015/16 “Year-End HRR Resolution Letter” or (ii) October 21st, 2016.
The NHLPA may vary the attribution of the Transition Payments to specific League Years (but not the payment) in its sole discretion. The Transition Payments shall be paid on a deferred basis (in each of Years 2, 3, and 4 as outlined above), with 2% simple interest to Players in amounts to be determined and as directed by the NHLPA, including by crediting all or a portion of a scheduled and due Transition Payment against an Overage for the most recently completed season. For example, the NHLPA may direct that all or a portion of the Transition Payment scheduled for October 2014 be credited against the Overage attributable to the 2013/14 season.
January 12, 2013