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NHL, players reach agreement in principle

The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.

The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.

The NHL and its players have reached an agreement in principle on a new contract, ending a tumultuous lockout that devastated fans and wiped out an entire season. Both sides jointly announced on Wednesday morning that the deal is expected to be ratified next week, bringing the league back to the ice this October. The statement, posted on the league's Web site, came after the sides reportedly met for a 24-hour marathon bargaining session that began Tuesday. Though the league will not officially release details until after the ratification, TSN is reporting that the deal includes the following: A six-year term good to the end of 2010-2011, with an option for a seventh year. A hard team-by-team salary cap with a payroll of range of $21 million to $39 million (in the first year). That includes all player costs, such as benefits and insurance. Total league expenditures on player costs shall not exceed 54 percent of defined hockey-related revenue. The salary cap and payroll range will go up or down as revenues increase or decrease each year of the deal. A 24 percent salary rollback for any player who has time remaining on an existing contract. Players will not receive any of the money they were slated to earn during the wiped out 2004-05 season. The maximum individual salary shall be no more than 20 percent of the team salary cap. That means that this coming season, no player can earn more than $7.4 million. The new minimum salary shall be $450,000. Changes to the free agency system, with players eligible to become unrestricted free agents at age 31 in 2005, 29 in 2006 and 28 in 2007. By 2008, it will be 27 or seven years of NHL experience. Improved pension benefits. A revenue-sharing system whereby the 10 most profitable teams donate to a fund shared by the bottom 10 teams. An entry-level system that limits new players to a salary of $850,000 per year. It will also be more difficult for newcomers to cash in on bonuses. Two-way salary arbitration in which both players and owners can select to go to arbitration. Under the previous deal, only players had this option. The ability for teams to buy players out of their contracts at two-thirds of their value. The clubs won't be able to re-sign those players.

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