Hello and welcome to this segment of our course in sports law and dead analytics, focusing on team and roster management. Last week we reviewed the overall function of these areas of sports law and data analytics. And in particular we focused upon the critical date and events calendar with an NHL focus referencing some other sports as well. We talked in broad measures about the types of issues that might arise both in the analytics world and in the legal regulatory world. That business managers have to function with regard to specific events that occur during the various times this season. And we identified four segments of the calendar year within which certain opportunities arise that managers have to deal with. Some of those involved athletes acquisition, athlete retention and certainly team assessment and performance. For both the players and the coaches and management. So at this time we're going to hand it over to our, my colleague, mr jeremy. Who is going to take it away and talk to us more specifically about the first segment in the NHL's calendar year. >> Thank you nelly, welcome again to the students in week two, course two. As Natalie mentioned, we've focused on the calendar approach. And are starting with what I call the preseason through early season part of the calendar. This is the time of year that begins usually late August through September and into the regular season through December. And the management activities are now offseason are complete and we could start this discussion with the draft and that time of year. But this is kind of a fresh start. Where you get a chance to start with a new staff, a new group of people and everybody is optimistic at this time of year. So the draft is complete, offers have all been made to protect your assets, athletes are signed. And disputes have been settled or concluded by arbitration. We're gearing up for the new season and we're ready for planning for training camp and and ongoing efforts. The schedule of season schedule is set. The salary cap upper and lower limits are set by the league and the players association by agreement. Usually in the mid to late summer, management finalizes training camp plans, preseason games and locations are identified. We ensure all invitees are confirmed and complete the immigration process. Because that is interesting very much because of so many different countries represented in many of the pro sports today. The key function at this time of year with the general manager and the coaches and the staff. Will all come together after some vacation time, frankly, not very much. There were meetings with all non playing personnel. We'll use three assistant general managers or people in second tier management levels. Who are in charge of different functions. The directors of player personnel, both professional and amateur. All the scouts, the coaches, trainers and doctors are all coordinated through the executive assistant. Who make sure that everybody is ready for their meetings and oftentimes these meetings would occur very early in training camp. But their ongoing and they would be both in the group collectively and also individually by function. The principal activity this time of year. Is basically reserve list analysis, depth chart revisions and additions, anticipated team assignments and medical assessments. The guiding documents that control these kinds of decisions are the standard players contract and collective bargaining agreement. The reserve list of every team which is league provided, depth charts which are produced by the club themselves in some cases. But often used through an external source, much like what we're going to use today called cab friendly. So they set the, we will talk about collective bargaining and sports law. And did analytics applications, reserve list and same similar functions or actions. The depth charges include four tiers of NHL, HL, ECHL. Unsigned draft choice and so on. All done before training camp and subject to adjustment through training camp. And the final preseason activity for management is conducting waivers and assignments to the minor leagues as necessary. So note they're going to be deadline subject to adjustment and an expansion here which we're going through right now. But generally speaking, we will not deal with them unless they come up in specific examples as we go forward. First effort, I would suppose of a management slash council point of view is for team counsel to sit down with the general manager. And review articles sections applicable to this time of year. And functions that the management has to be aware of within the structure of collective bargaining and standard players contract. Which we will refer over to our council Nelly drew. >> Thanks Jerry, So yes. So particularly with respect to this time of year, we will be focusing at least in the NHL on Article 11. Which has to do with rules and procedures governing standard player contracts. There's one very, very important point I want to make and it's with respect not only to the NHL. But to each of the four major professional sports leagues. And that is that the standard players contract itself is an exhibit to each of the collective bargaining agreements. And the standard players contract by virtue of that, of that relationship with the collective bargaining agreement doesn't trumpet. Okay, It's very important to recognize that. And the reason we have this form contract, the standard form contract. Is to make sure that all the provisions are exactly the same for each player in the league within certain limitations. Certainly every player doesn't play for the same salary by the same token. Each player is going to have primary terms and conditions of employment set forth in standard language that is well understood. And very little room for misunderstanding or miscommunication, which is very important to making sure that the league runs smoothly. The other important piece to remember. Is that no standard player contract is actually effective until it has been filed with central registry in the NHL's case. Or with the league in the NFL's case, the NBA etcetera. And again, that's a way of making sure that there is no conflict. And no confusion with respect to who actually owns the rights for a particular player's contract. And what the terms and conditions of that contract really are. So, those are the two overarching sort of principles to keep in mind. In addition to that, as we'll see, going through. We gave you one of the readings specifically addresses the terms of the standard players contract. It's a little dated, it's from 2016, but it's a relatively easily digested piece of information. Which is why we we gave you that particular reading. Note, however that article was published prior to the execution of the memorandum of understanding between the NHL. And the NHLPA last summer. Which modified a little bit some of the terms and conditions of the collective bargaining agreement. That was extended by the MOU through 2006, possibly the 2007 season. Depending upon the revenues that are achieved between now and then. Of particular interest to us in the legal world, of course, are things like the upper and lower limits of the salary cap. So, those were adjusted partially because of the pandemic. But also to reflect what was anticipated in terms of additional media rights going forward and similar hockey related revenue. So currently we're looking at for the coming or This current year lower limit of $60.2 million. That means that every team in the league must have players under contract at the NHL level with at least that amount of money in us dollars. As the article makes clear with a reference to our good friend Lou Lamoriello, which I thought was pretty funny actually. The upper for this coming from this particular season, 81.5 million. And in a minute we're going to show you the cap friendly site and talk a little bit about what the implications of that are. And certainly another aspect of this, which is interesting. And jerry, you might recall particular experience you and I had some years ago. We had several very, very skilled players in the Buffalo Sabers. Is that under the MOU now? You may no longer have a situation where one or two players have the lion's share of that team salary. Under particular contract in a given year. I remember, I can't remember the specifics anymore jerry. But I do remember there was one year we, I think they had Dominic cash, pat Lafontaine and maybe somebody else under contract. Who together like a third of the salary for their team. Do you remember that? >> Well, it would have been probably dale, howard chuck, belafonte and Dominic who all were paid basically at the top of the salary scale. And even though there wasn't the degree of sophistication in these kinds of analyses then as there are now. It had become a market and the market prevailed. And that's why we have a salary cap now because the market got very aggressive. >> Yeah, so I mean and that's what exactly. That's why that are that provision article of it is there now? And it wasn't just the favor of doing that. Everybody had that challenge. And this was a way of responding to it. So currently it's no more than 20% can be in one player's contract in any given year. Similarly, they've addressed the issue of club bonuses. It used to be that you can provide club as well as league bonuses for various achievements. That's not, that's no longer the case. There are certain performance bonuses that you can allow depending upon your status as a player. But no club bonus structure over and beyond what you would have received for certain league achievements. Particularly now with respect to the NHL and perhaps jerry, you might want to speak this a little bit. Is the fact that you can't renegotiate your contract, you can have an extension. But you can't renegotiate the term, during the term, during the terms of contract, during the term, you want to speak to that jerry. >> Yeah, that makes a lot of sense. The temptation is always going to be to pay your best players to keep them happy. There's always going to be pressure on from their agents to do the same thing. But renegotiating a contract in term really disrupts the, not only the team chemistry, but the team ability to require new players. Because even before a salary cap, there was always going to be some level of ownership control over spending. And a renegotiation of an expensive players contract during contract term disrupts the whole matter. And I think the newest, the new situation now satisfies that issue or that concern. Because it prevents it, but it does not preclude extending and creating the expectation for the player and the agent. That they will be fairly paid going forward. >> That's fair and I think it's also important to recognize that, these contracts and the NHL as opposed to like the NFL are guaranteed. So that's another significant distinction from a general manager's perspective as well from a legal perspective. >> Well, the guaranteed contract is an interesting discussion topic in its own. Way back when the National Hockey League was in, it's very, very early stages of unionization called an association at the time. Run by a fellow named Al Eagleson, one of the greatest despite some of the challenges that resulted from his leadership. One of the great accomplishments that were done during his time was the creation of the guaranteed contract at the time. The National Hockey League was the only lead that had a guaranteed contract. Now, that meaning there was no way you could declare a player unable to make your team and therefore you don't pay him. Once you make a decision to sign him to a contract, whatever term he's yours or whoever, you trade him to. Takes them on knowing that the contract is guaranteed. >> So that's an important thing to remember. And one other thing I also wanted to mention was the fact that again. The contracts have to be submitted to central registry in order for them to take effect. But once they're there, they're there and that there's lasting implications for the club going forward. So that again, one of the key, the key concerns for councils to make sure that the contracts has submitted. Meet all the requirements set forth in the collective bargaining agreement under particularly article 11. But also Article H has to do the entry draft, Article nine, which has to do with entry level compensation. We'll talk more about these in the weeks that follow and certainly article 10, Free agency. So it's Club Counsel's job to make sure that the contracts is submitted to central registry. Are not going to be rejected by central registry. Because I'm sure you can appreciate it's no fun going back to the agent after we've already cut the deal. And saying sorry, this isn't going to work. The NHL is not going to take it
