It’s that time of the month when we take a look at what’s been happening in hockey’s business and legal world. Twice a month we cover the big and not so big stories in this arena. We also include a featured story of the period. Let’s take a look at what has been happening this period.
Hockey’s Business and Legal News
New NHL/NHLPA Trial Off-Season Training Agreement
Following the NHL fining the Vancouver Canucks for violating the offseason training rules provided in the NHL/NHLPA Collective Bargaining Agreement, the NHL and NHLPA have agreed to a one-summer trial agreement for adjustments to this rule. In Section 15.10 of the CBA an NHL team may only hold one offseason training session. However, such session is limited to drafted but unsigned players, players on entry level deals with limited NHL experience, and other similar inexperienced players. Coaches or other hockey operations personnel of the team are not supposed to be on the ice with any players skating in the offseason. Reportedly, under this trial agreement, one skills coach can be on-ice with a player, but it must be at the player’s request. In addition, the player must go through the NHLPA, which will contact the team and league. This rule change did not relieve the Vancouver Canucks of their penalty.
Hearing NHL/NHLPA have reached a one-summer "trial agreement" amending what is allowed during off-season training (1/x)…
— Elliotte Friedman (@FriedgeHNIC) June 1, 2023
North Carolina May See Online Sports Betting Soon
Both houses of the North Carolina legislature have passed a bill allowing for online sports betting on mobile devices and at select sporting events. Online sports betting has become a huge market with about half the states allowing it. Additionally, through the development of advanced analytics, online sports betting continues to be in a major growth state. North Carolina is looking to get some tax revenue from that industry. For the Carolina Hurricanes, this may allow for increased sponsorships and other revenue generating opportunities including a possible building expansion to house such betting. Currently, the bill is awaiting the governor’s approval. Reportedly, that approval seems likely.
No word on when Cooper will sign bill. Cooper spox: "The Governor believes that North Carolina taxpayers should benefit from sports wagering which is already occurring, and this legislation provides a way for that to happen within the bounds of the law."https://t.co/ufxFrLfAbY
— Brian Murphy (@murphsturph) June 7, 2023
Updates on the NHL’s Finances
After the conclusion of the 2022-2023 NHL season, various reports rose providing updates on some financial statuses of the NHL as well as predictions. First, the $1.1 billion held in escrow from the pandemic that is due to the owners from the players will be down to around $70 million after the season.
There was a $1.1 Billion Escrow Debt from the pandemic owing from NHL players to Owners. By end of this season, the balance will be down to $70 million. In other words, 93% of the Escrow Debt will be paid off. 1/
— Allan Walsh🏒 (@walsha) June 3, 2023
However, Bettman has stated that because there is still debt owed, the salary cap will likely only increase $1 million with a larger increase expected in 2024. The NHL’s salary cap is based on projected revenues with such revenue split 50/50 between the owners and the players. However, due to COVID-19, the normal system where players’ money is held in escrow and later paid out was sort of turned on its head due to essentially no reveneue. Check out our article on that for more detail here. Keep an eye on this moving forward.
Bettman says most likely salary cap increase will remain at $1M bump only for this summer. The larger bump comes in summer of ‘24
— Pierre LeBrun (@PierreVLeBrun) June 3, 2023
The NHL’s Investigations into Prior Domestic Incidents
The NHL’s deputy commissioner Bill Daly recently made various statements regarding updates to Valeri Nichuskin and the NHL’s probe into the 2018 World Junior Championship sexual assault allegations. On Nichuskin, Daly stated that there was no ongoing investigation into the incident involving Nichuskin and an intoxicated female in Seattle during the playoffs. The Colorado Avalanche had handled the situation appropriately. In addition, Nichuskin is able to play next season.
Daly says there is no NHL investigation into the Valeri Nichushkin incident, that it was handled "appropriately" by Colorado and he is eligible to play. Police cam footage was released earlier this week.
— Elliotte Friedman (@FriedgeHNIC) June 3, 2023
Meanwhile, Daly also provided that the NHL’s investigator looking into the alleged sexual assault incidents involving the 2018 Canadian World Junior Championship team had completed the investigation. Members of the Canadian 2018 World Junior Championship team allegedly sexually assaulted a woman during a gala event. Since the actual sexual assault claim was settled, the issue was more about Hockey Canada’s handling of that and similar situations. The investigator should provide the report to the NHL in the summer.
In pre-Stanley Cup press conference tonight, deputy commissioner Bill Daly says an investigator hired by the NHL has finished work on probe of sexual assault allegations involving 2018 Canadian World Juniors team players.
— Rick Westhead (@rwesthead) June 3, 2023
Daly says report should be provided to NHL this summer.
Harvard Women’s Hockey Coach Retires Following Abuse Allegations
Following reports of alleged abuse, Harvard’s women’s hockey coach Katey Stone announced her retirement. The Athletic and the Boston Globe released these reports and provided allegations of widespread abuse and a culture of hazing. This has become a big topic lately as more and more of these stories have come to the surface. Stone’s tenure as coach lasted almost three decades but following these reports, the University hired an independent law firm to launch an external investigation. Reportedly, the law firm has completed the investigation but has not released it to the public yet.
Harvard women’s hockey coach Katey Stone retires amid allegations and investigation into program
— Katie Strang (@KatieJStrang) June 7, 2023
Story w/ @hailey_salvian https://t.co/9t8gmMmHaB
ECAC Hockey Names Doug Christiansen as New Commissioner
The Eastern College Athletic Conference (ECAC) has named Doug Christiansen as its new hockey commissioner following the departure of long time commissioner Steve Hagwell. Twelve NCAA Division One schools including this year’s national champion Quinnipiac University make up ECAC Hockey. It also includes other notable hockey schools such as Harvard, Yale, Princeton, Cornell, Brown, and Union College. As an ECAC alumni, Christiansen, who competed for four seasons on the men’s hockey team at Union College, most recently served as Deputy Commissioner of the United States Hockey League (USHL). There he oversaw USHL Hockey operations and properties and served as the primary point of contact for USA Hockey, NHL Central Scouting, and media entities.
It's an exciting day across the league as we officially announce Doug Christiansen (@ECACCommishDoug) as the new #ECACHockey Commissioner!
— ECAC Hockey (@ecachockey) June 13, 2023
Congratulations, Commish! Welcome to the family!
🔗https://t.co/MT4eYgaxrR pic.twitter.com/9kRLjqXYJ5
Michael Andlauer Will Be the Next Ottawa Senators Owner
After much speculation and many bids, the group led by Toronto based businessman Michael Andlauer will likely be the Senators next owner. In addition, in his bid Andlauer agreed to keep the team in Ottawa and submitted plans for the building of a new arena. While the final purchase price has not been fully released, it is estimated around $1 billion.
Breaking: Sources say Michael Andlauer will be the new owner of the Ottawa Senators. #Sens
— Bruce Garrioch (@SunGarrioch) June 13, 2023
The next steps include completing the NHL’ s approval process to purchase the team. Both the buyers and sellers need to complete any other necessary formalities to complete the transaction. For example, Andlauer currently owns a 10% stake of the Montreal Canadiens. To get NHL board approval, he will have to divest himself of said interest. (For a more in depth look at the process, check out our previous three-part series on purchasing an NHL team.)
Time line on NHL Board of Governors approval of Sens sale still TBD. There’s a BOG meeting next week but that appears to be too quick for a vote. So likely an electronic BOG vote at some point. Has to be vetted by BOG Executive Committee first as per usual.
— Pierre LeBrun (@PierreVLeBrun) June 13, 2023
Also part of the deal, Melnyk’s daughters will retain a ten percent ownership of the team.
Anna and Olivia Melnyk will retain 10% of the franchise #Sens
— Bruce Garrioch (@SunGarrioch) June 13, 2023
Interestingly as reported by Sportico, the prospect of a new arena likely drove the price up on the team. The competition for this bid didn’t hurt either. However, the price is still notable considering they generate some of the lowest revenues in the NHL.
The Senators generate the 3rd lowest revenues in the NHL but still commanded nearly $1B, thanks to the prospects of getting a new arena. pic.twitter.com/PhwAXy3oyz
— Sportico (@Sportico) June 13, 2023
Post image attribution: By Alaney2k, CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons