Filing for Salary Arbitration in the NHL
Who is Eligible, the Filing Process, and How it is Settled
Aug 3, 2009
Restricted free agents don’t get to enjoy the same freedom as their unrestricted brethren but they do have their options. Some will sign an offer sheet should one come their way, others will work to get a deal done with their current team, while some might look to arbitration.
Who Can File For Arbitration?
Not every restricted free agent is eligible; those who qualify must meet the age requirements as specified in the current Collective Bargaining Agreement (CBA). The ages indicated are those of the player in question when he signed his first professional contract while the years of experience reflect the total at the end of the most recent contract.
Eligible players must be:
- Between 18 and 20 with at least four years of professional experience
- 21 years old and have played at least three years of professional hockey
- Ages 22 and 23 with at least two years experience in the pro ranks
- 24 or older with at least one year of professional experience
According to the Agreement, at least 10 professional games – which includes the NHL, appearances in the minor league regular season or playoffs, and European or other leagues outside North America – equates to a year of experience.
While most often it’s the players who file for arbitration – the only option in the previous CBA – it’s not only up to them. When the deal was ratified in 2005 it took a cue from Major League Baseball and allowed NHL clubs the option to take a player to arbitration. So far, only one team has ever taken advantage; in August 2005, the Florida Panthers made history when they elected to do so with star goaltender Roberto Luongo.
How Do Players or Teams File for Arbitration?
If the decision comes from the player’s end, he or his agent must send a written request as specified in the CBA to Central Registry (which handles and processes all contracts), the NHL Players’ Association, and his team by 5 PM (EDT) on July 5th of the year in which he is an arbitration-eligible restricted free agent.
In the event that a club makes the request, the procedure and deadline varies slightly, depending on the existing contract of the player the team elects. For players whose salary plus bonuses (signing, roster and reporting) combined exceed $1.5 million in the final year of his contract, the team must submit their intentions no later than 5 PM on the later of June 15 or two days after the conclusion of the Stanley Cup Final.
If the player does not fall into the aforementioned category, the team must file within the 24 hours immediately following the player-filing deadline (July 5th at 5 PM until July 6th at 5 PM). Clubs are required to send their request to the player in question, his agent, the NHLPA and the NHL.
Players can opt to have their case settled by an arbiter any time they are eligible. An NHL team, however, must seriously consider its options before choosing that route; a club can only take any individual player once to arbitration and may not file more than twice (two players) per off-season.
Regardless of who does the filing, once one side submits the intention the intended player can longer be targeted for an offer sheet by a rival club.
How Often is the Case Settled Beforehand?
The preference on both sides of the negotiating table is generally to reach a deal before the scheduled arbitration hearing date, and more often than not that is exactly what happens. From 2007 through 2009, 67 players had filed but only 14 had actually presented their case before an arbiter.
In those cases where the arbiter does hear the case, he then has 48 hours to render his decision. The team then has an additional two days to consider the ruling before either signing the player to the arbiter-imposed contract or choosing to walk away, leaving the player as an unrestricted free agent.
Get more details on the process of an NHL arbitration hearing.
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