The 2012–13 NHL lockout was a labor dispute between the National Hockey League (NHL) and the National Hockey League Players' Association (NHLPA) that began at 11:59 pm EDT on September 15, 2012. A tentative deal on a new collective bargaining agreement (CBA) was reached on January 6, 2013, with its ratification and signing of a memorandum of understanding on the agreement completed by January 12, 2013, days after the expiry of the previous CBA.
The owners of the league's franchises, led by NHL commissioner Gary Bettman, declared a lockout of the members of the NHLPA after a new agreement could not be reached before the expiry of the NHL collective bargaining agreement on September 16, 2012. The lockout shortened the 2012–13 NHL season, originally scheduled to begin on October 11, 2012, from 82 to 48 games, a reduction of 41.5 percent. The revised season started on January 19, 2013, and ended on April 28, 2013.
An issue for the owners were desires to reduce the players' guaranteed 57% share of hockey-related revenues, introduce term limits on contracts, eliminate salary arbitration, and change free agency rules. The union's initial offers focused on increased revenue sharing between owners and a fixed salary cap that is not linked to league revenues. As the deadline for a work stoppage approached, the union unsuccessfully challenged the league's ability to lock out players of three Canadian teams – the Edmonton Oilers and Calgary Flames (in the jurisdiction of Alberta), and the Montreal Canadiens (in the jurisdiction of Quebec).
The dispute was the third lockout in the 19 years since Bettman became Commissioner in 1993, following player lockouts in 1994–95 and 2004–05, with the latter case leading to the cancellation of the entire season. This was also the third labor dispute for NHLPA executive director Donald Fehr who, as head of the Major League Baseball Players Association, led his union through a lockout in 1990 and a strike in 1994–95.
During the lockout, many NHL players went to other leagues in North America and Europe. Many businesses in the United States and Canada located near NHL arenas lost money as a result of the games not played.
Cancelled games All games on the original 2012–13 NHL calendar up to January 14, 2013, were cancelled, including the 2013 NHL Winter Classic between the Detroit Red Wings and the Toronto Maple Leafs, which was rescheduled for 2014. In addition, the 2013 All-Star Game, scheduled for January 27, was postponed to 2014 then postponed again to 2015 because of participation at the 2014 Winter Olympics. The revised 48-game schedule resulted in the cancellation of 510 regular season games, comprising 41.5 percent of the season.
Issues The owners identified their key issues in their first offer, presented on July 13, 2012. Their offer retained the framework established following the 2004–05 NHL lockout but made numerous changes to player salary and movement rights: Reduce the players' share of hockey-related revenues from 57 percent to 46 percent, while also redefining hockey-related revenues, so that the players' share would be reduced to 43 percent based on the definition in the expired CBA. Set a maximum term of four years on all new players' contracts. Eliminate signing bonuses and set a uniform salary for each year of a contract, thus eliminating front-loading of contracts. Extend entry-level contracts for players entering the league from three years to five. Extend qualification for unrestricted free agency from seven years in the league to ten.
The players' union waited a month to offer a counter-proposal as it requested additional financial data from the league. When the union proposed it on August 14, it retained a salary cap, but de-linked it from revenue. It proposed a fixed cap for three years, followed by a players' option to return to the terms of the expired CBA in the fourth year. Fehr suggested their proposal could save the league as much as $465 million and would feature an enhanced revenue sharing system that would help lower-revenue teams.
Negotiations The two parties exchanged a pair of offers as the deadline for a lockout approached. The union's last offer before the expiry of the collective bargaining agreement continued to call for an unlinked salary cap that would steadily increase over a five-year term. Donald Fehr argued that if the league continued to see revenue increase at the seven percent average of the 2005–2012 CBA, the players' share of revenues would drop from the 57 percent they received in 2011–12 to a low of 52 percent in 2015–16, but increase in the final two years of the deal back to 54 percent. The NHL countered with a time-limited offer where it would continue with the existing definition of hockey-related revenue and a linked salary cap that would pay the players 49 percent of revenues in 2012–13 and fall to 47 percent by the sixth year of the deal. Each side rejected the others' offer, and some veteran players expressed willingness to sit out an entire season if necessary. The National Hockey League officially locked its players out when the CBA expired, and on September 19, cancelled all preseason games for the month of September. Several players then signed contracts to play in European leagues for the duration of the dispute.
The NHLPA challenged the NHL's right to lock out the players in two Canadian jurisdictions. Sixteen members of the Montreal Canadiens unsuccessfully sought a temporary injunction from the Quebec labor Relations Board that would prevent the team from locking its players out of practice facilities and would have required the Canadiens to pay its players regardless. Twenty-one members of the Calgary Flames and Edmonton Oilers sought similar relief from the Alberta labor Relations Board, but the board ruled in favour of the NHL.
Having cancelled the remainder of the preseason, and regular season games up to November 1,NHL ANNOUNCES CANCELLATION OF GAMES THROUGH NOVEMBER 1 TSN on October 16, Bettman offered a 50–50 revenue split in the owners' latest CBA proposal. Two days later, the Players' Association presented three counterproposals. Both sides were still far apart when negotiations ended."NHL unhappy with union response". ESPN. October 18, 2012. Retrieved October 18, 2012. The league, which refused to negotiate with the NHLPA unless they used the league proposal as the starting point, withdrew its offer after negotiations failed.Gentile, Sean. NHL pulls last offer from players. The Sporting News via Buffalo Business First. Retrieved October 26, 2012.Lebrun, Pierre (October 25, 2012). NHL plans to withdraw proposal. ESPN. Retrieved October 26, 2012. Subsequently, on October 26, the NHL cancelled all games scheduled for November, including the annual Hall of Fame game, scheduled for November 9 at the Air Canada Centre, and the Black Friday Thanksgiving Showdown scheduled to air on NBC. In addition, the 2013 NHL Winter Classic was cancelled on November 2.
The league and players' association resumed negotiations on November 6, meeting over six consecutive days in a neutral, undisclosed location.Podell, Ira (November 9, 2012). NHL labor talks under way for 4th straight day . Associated Press. Retrieved November 9, 2012. The NHL offered to pay a $211 million "make whole provision" over the first two years of the deal to honour existing player contracts; the NHLPA sought $590 million.Strang, Katie. "NHL, players meet briefly in NY". ESPN. November 11, 2012. Retrieved November 11, 2012. On November 21, the NHLPA made a new proposal that left the sides $182 million apart, which Bettman immediately rejected."Gary Bettman: Sides 'still far apart'". ESPN. November 22, 2012. Retrieved November 23, 2012. Two days later, all games up to December 14 were cancelled, as well as the All-Star Game.NHL CANCELS ALL-STAR WEEKEND AND GAMES THROUGH DEC. 14. The Sports Network. Retrieved November 23, 2012.
The NHL and NHLPA agreed to mediation under the auspices of the Federal Mediation and Conciliation Service on November 26.McGran, Kevin (November 26, 2012). NHL lockout: Mediators called in for meetings this week. The Hamilton Spectator. Retrieved November 26, 2012. The sides met with mediators on November 28 and 29, but the mediators quit after that point, determining they could not make any progress reconciling the two parties' demands.Strang, Katie. "Mediation yields no progress". ESPN. November 29, 2012. Retrieved November 29, 2012.
Following mediation, Bettman proposed a meeting between players and team owners to Donald Fehr, and Jamal Mayers tweeted that the NHLPA had made a similar offer to meet directly with owners.Stubits, Brian. "NHL lockout: Bettman reportedly suggests players/owners-only meeting". cbssports.com. November 29, 2012. Retrieved November 29, 2012. From December 4 to 6, six team owners, 17–19 players, and staff from both sides met to negotiate and exchange proposals. The league offered to raise the "Make Whole" provision to $300 million and to give ground on player contracting and pension issues, but identified three components of the CBA they considered important: a five-year limit on player contracts, a ten-year length of the new CBA, and compliance issues. The players offered an eight-year limit on contracts and an eight-year CBA with an opt-out clause after six years. The NHL rejected the offer, and talks broke down again. After negotiations failed, Bettman delivered a press conference saying the "Make Whole" provision would be pulled off the table. He also stated that the league would deny the union's request to bring mediators back into the negotiations.Strang, Katie. "Sources: Sides exchange proposals". ESPN. December 6, 2012. Retrieved December 6, 2012."NHL labor talks break down". ESPN. December 6, 2012. Retrieved December 6, 2012. Four days later, the NHL cancelled all games up to December 30.NHL announces cancellation of 2012-13 regular-season schedule through December 30 NHL.com
After talks broke down, rumours leaked that the NHLPA planned on filing a "disclaimer of interest" (a quicker, less formal way to dissolve the players' union, compared with decertification) and, with collective bargaining no longer in effect, pursuing an antitrust lawsuit against the NHL. The NHL responded on December 14 by filing a class action suit with the U.S. District Court in New York seeking to establish that its lockout was legal. Included in the lawsuit was a request for all existing player contracts to be "void and unenforceable", should the NHLPA be dissolved, resulting in all NHL players becoming free agents."NHL will seek to cancel contracts if NHLPA dissolves". Toronto Sun. December 15, 2012. Retrieved December 16, 2012. The league also filed an unfair labor practice charge with the National Labor Relations Board, stating that the union had been negotiating in bad faith and that its threat to disclaim interest was a negotiating ploy that violated the collective bargaining process."NHL files lawsuit, labor charge against union". Fox News Channel. December 14, 2012. Retrieved December 15, 2012."NHLPA eyes breakup; NHL responds". ESPN. December 14, 2012. Retrieved December 15, 2012. In a vote conducted from December 17 to 21, the players authorized the union's executive board to file a disclaimer of interest, up until January 2, 2013, though it did not proceed with the filing.Strang, Katie. "NHLPA gives board OK on dissolution". ESPN. December 21, 2012. Retrieved December 21, 2012. On December 20, the league cancelled all games up to January 14, 2013.