“Whose Deal is it Anyway?” Evaluating the new NHL CBA

“Is this real life?” You’ll have to forgive me if I sound like David after the Dentist. I’m not used to having nice things.

In a pleasant turn of events, the NHL and NHLPA have agreed to terms on a four-year extension to the Collective Bargaining Agreement (CBA) last week, the terms of which will go into effect at the start of the 2026-27 season. Having suffered through three separate work stoppages in my lifetime, this is … strangely good news.

Can someone check in on Gary Bettman’s loved ones to ensure we’re not in a “Buffalo Bill”-type situation?

Anyway, let’s dive into the agreement and see how everyone fared, shall we?

84-Game Schedule

The NHL regular season will expand from 82 to 84 games and, as a result, the pre-season will be reduced to four games.

I, for one, am quite happy to see the pre-season shortened. It was too long. - there, I said it. The games were relatively meaningless and, although many prospects may argue that they’re missing out on an opportunity to “make an impression,” for the most part, teams already know who is going to make the roster. NHL pre-season legends Ty Rattie, Brandon Bochenski, and “Lamborghini” Perlini provide ample evidence of this.

Two additional regular season games will not significantly increase Hockey Related Revenue (HRR), as proceeds from pre-season games count towards the HRR pot. So, the financial aspect of this change is relatively negligible.

This seems like a missed opportunity. If the league was going to add meaningful games, why not add a “play-in” round just before the playoffs? Those games would really matter. I understand tradition, but 16 teams have qualified for hockey’s second season since the 1979-80 season, when there were 21 teams in the league. We’ve gone from a whopping 76% of teams (and players) making the playoffs, to only 50%. Let’s give an opportunity for more stars to shine in the post-season.

Winners: Fans (kind of).

Minimum Salary Increases

The NHL’s minimum salary will increase from its current level of $775,000 to $1 million in five seasons.

This marks a 29% increase over a short period of time - which is sure to (hopefully) outpace inflation.

Winners: Easy - the league’s lovable “grocery sticks".

Salary Retention Limits

In an odd move, “double retention” trades have been outlawed by the NHL.

A “double retention” trade is when a Team A trades a player (let’s call him “Bob”) to Team B, while retaining 50% of Bob’s salary. Immediately after, Bob is then subsequently traded to a third team (Team C) after Team B retains 50% of Bob’s remaining salary. This can result in Team C receiving Bob with a salary cap “hit” of 25% of his original figure.

Confusing? Yeah, well, you don’t need to worry about it anymore.

Winners: People who hate math.

Playoff Fund

The players’ playoff fund will jump from $24 million (today) to $40 million, in 2029-30.

As not all players qualify to play in the playoffs, player salaries are paid out over the duration of the regular season. Players who do qualify for the playoffs then compete for playoff bonuses - oh, and the Stanley Cup.

Winners: The Stanley Cup finalists - it sucks to go that far and lose. At least their heartbreak is better compensated.

No More Dress Codes

Teams can no longer enforce a dress code. Instead, the league requires only that players dress in a manner consistent with “contemporary fashion norms.”

Somewhere out there, Lou Lamoriello is rolling over in his grave.

What’s that? He’s still alive? Well, then… Give me a glass of whatever elixir he’s drinking.

Winners: Players, I guess.

Neck Protection

One (preventable) tragic accident is one too many.

Winners: The hockey community.

EBUGs

Teams will employ a permanent emergency backup goalie that will travel with the teams.

While I recognize that these instances hurt the credibility of the NHL among the “Big Four” sports in North America, it’s always a fun story - except if you’re a Leafs fan.

Losers: Zamboni drivers everywhere.

Shorter Max-Term Contracts

Maximum contract terms have been reduced. If a player re-signs with his current team, he will only be able to sign for seven years. If the player is an Unrestricted Free Agent (UFA), the max term will be six years.

Unlike some of its sporting cousins, the NHL has guaranteed contracts. Physical contact sports are unpredictable - just ask Rick DiPietro. The game can take a significant toll on a player’s body, so obtaining a long-term contract can provide peace of mind for those who have the leverage to obtain one - again, ask Rick DiPietro.

Having said all of this, the reduction in maximum contract term is minor and not all players have the opportunity to sign such a long-term deal. Additionally, a little more player movement might add some excitement to the league. I don’t hate it.

Winners: GMs (who have been saved from themselves).

Olympic Participation

While I understand that NHL owners are nervous about the prospect of losing one of their star players to injury while they wear another team’s jersey - see above, “guaranteed contracts” - too many players have lost the opportunity to represent their countries throughout their career.

This is awesome.

Winners: Everyone.

Resolving Medical Disputes

Both the NHL and NHLPA have agreed upon a tie-breaking mechanism, should a player seek a second medical opinion, and that opinion conflicts with the medical opinion of the team’s doctor. In this case, a third doctor (at the team’s expense) will be chosen to resolve the dispute.

The interests of players and teams are not always in alignment. The team may be short-sighted, motivated to receive the best return on investment from the player during their career, whereas the player may want to have long-term quality of life, after hanging up their skates. As a result, it’s important to have an unbiased third party involved to resolve these types of disputes.

The players have Jack Eichel to thank for this.

Winners: Players.

Retired Players Emergency Health Care

The NHL and NHLPA will split the $4 million cost to establish a retired players emergency healthcare and wellness fund.

Glenn Healy, a retired NHLer, has long advocated for more support for his fellow peers. As previously indicated, a professional hockey career can take a significant toll on a body. Retired athletes will often incur significant injuries earlier on in their life, as a result of sport, and insurance may be more expensive for them, due to the higher likelihood that they will require pricey surgeries.

Winners: Retired players (and any current player that will one day retire).

Booze Endorsements

Players are no longer prohibited from endorsing wine and spirits.

I mean, sure.

In twenty years we’ve gone from Operation Slapshot to Wayne Gretzky emerging from the famous Bellagio fountain promoting an online sports gambling app during nationally televised games. The harm - addiction - is the same, but the league’s policies have been inconsistent for some time. It appears it was only a matter of time before the league removed this prohibition.

Winners: Anyone who is sick of sports gambling ads.

No More Fitness Testing

Fitness testing is no longer permitted during training camp or the regular season.

Personally, I’ve never biked so hard that I threw up, but it doesn’t look fun. Seems like an easy (and free) bargaining chip for the NHL to play.

Winners: Those who wish to remain “vomit free since ‘93”.

Curbing Front-Loaded Contracts/Signing Bonuses Capped at 60%

Year-over-year increases in earnings will be limited to 20% of the first year, down from 25%. Additionally, the lowest year of the contract must be at least 71% of the highest year, up from 60% previously.

Chris Johnston and Pierre LeBrun provide an excellent example of this: “If the highest year’s compensation is $10 million, the lowest year’s compensation cannot be less than $7.1 million and the year-to-year differences cannot exceed $2 million.”

As for the signing bonuses, well, that’s pretty self-explanatory.

These are significant changes.

Why? The concept of the “time value of money.” Due to inflation, $1 today is worth less than $1 next year. Now multiple this effect by millions. Objectively, it is always in a player’s best interest to get paid as much as possible, as early as possible. Not only does this protect their income from the effects of inflation, but it gives players an opportunity to invest their money in other endeavours which could then make them more money!

One such example of maximizing the value of a contract is the infamous 17-year deal signed by Ilya Kovalchuk. In that deal - which the Devils were later forced to restructure - Kovalchuk received payments of over $10 million in six of the first 8 years and received less than $1 million in each of the last six years. Talk about front-loaded!

By capping signing bonuses at 60%, players are more exposed than ever to buy-outs.

Did I mention that NHL contracts were guaranteed? Yeah, well I wasn’t being 100% honest. There is one exception - a team can buy-out a player if they feel as though their play does not merit their compensation.

For players who are 26 or older, a buy-out is two thirds of the remaining salary owed on the contract, paid over twice its duration. For example, if a player was owed $60 million over the next five years, and was paid $12 million a year in salary, they would receive $40 million over the next ten years.

For players who are under 26, a buyout is even less forgiving. The player would receive only one third of the remaining salary owed on the contract. For example, if a player was, again, owed $60 million over the next five years, and was paid $12 million a year in salary, they would receive only $20 million over the next ten years.

Notice the formula refers specifically to salary, though. Signing bonuses do not constitute “salary” and are guaranteed.

Let’s run the numbers again, using an example of a player over the age of 26. Let’s say they were owed $60 million over the next five years, but that, in each year, they were paid $11 million in signing bonuses and $1 million in salary. If the player was bought out, they would still receive their $11 million signing bonus every year, totalling $55 million. In addition to this guaranteed compensation, they would also receive $4 million over the next ten years.

As you can see, the higher the signing bonus, the more they are protected. The lower the signing bonus, well…

Winners: NHL owners.

No More AHL “Paper Loans”

A “paper loan” occurs when a player is assigned to the AHL, but never reports to the team. This is done generally to reduce their compensation and accrue salary cap space throughout the season. A player must now play at least one game with the AHL team prior to being recalled.

Loser: “Salary Cap Wizard” - Brandon Pridham

No More Deferrals

As Dwight Schrute so eloquently said, “Whenever I’m about to do something, I think, ‘Would an idiot do that?’ and if they would, I do not do that thing.”

Echoing the earlier concept of the time value of money, it is an objectively bad (for the player) move to defer salary. Even if a player skates for a team in a high-tax jurisdiction, there is the opportunity cost to consider. How much money could the player make with the money (however impacted by tax) immediately - something he cannot do if he receives the (potentially larger amount of) money years down the line.

Yes, Ohtani did it, but as a superstar in Japan, he likely makes more in endorsements than other MLB players do in salary each year. He likely didn’t decide to defer his salary primarily for financial reasons. He did it because he wanted to be a nice guy and be on a competitive team.

I assure you that the government of California is working day and night to try to undermine any tax savings that Ohtani aspires to achieve when he is paid out the remainder of his contract, after his athletic career is over and he has returned to residing in Japan. Just because a loophole exists today, doesn’t mean that it will exist later.

Nothing motivates the government quite like tax revenue.

Winners: Residents of the players’ current tax jurisdiction.

Conclusion

It’s clear that both sides gave concessions, but overall, it seems like a very fair agreement. Players receive a lot of quality of life improvements (higher minimum salary, no dress code/fitness testing, participation in the Olympics, increased Stanley Cup bonuses, and retirement benefits), while the Owners reduced their risk (by reducing the maximum term of contracts, reducing front-loading of contracts, and reducing signing bonuses).

At the end of the day, it’s an incredible deal for fans, as they can look forward to four more years of uninterrupted hockey.