You think we had labor peace and that all was well? Well, maybe so, but a new battle is quietly brewing on the NHL labor front, and it all has to do with setting salary cap parameters under the new collective bargaining agreement.

Those thresholds require that each team spend no less than $21.5 million and no more than $39 million on their club payroll. Figures will be adjusted annually, based on the league’s total revenues. And with the NHL doing better than their preseason projections of $1.8 billion league-wide, the cap will certainly move up.

Earlier this month, NHL Commissioner Gary Bettman predicted that his league might do better than the final pre-lockout season, and based on that forecast, one could expect that next year’s salary cap will go to somewhere around $46 million, with a floor of around $29 million.

The players, however, will be arguing for a lower salary cap, perhaps around $43 million.

Huh?

Yeah, you read this right, and it all has to do with “escrow” payments, something the players are loath to make. In a nutshell, players have had to fork over 12 percent of their salaries at the beginning of the season. At the end of the year, if revenues meet expectations, the players get their escrow payments back. Remember that total salaries can not exceed 54 percent of gross revenue.

Sabres defenseman Jay McKee, who serves as player representative on the NHLPA, explained the conundrum in a very succinct way. “By keeping a lid on the cap, there’s a better chance that payroll will match up to team revenues and that will put the brakes on the need for escrow and the uncertainty of week-to-week paychecks,” McKee explained.

McKee then denied that there was any major rift brewing with this issue. “We’re dealing in a new cap world in this league, and everyone on all sides is still trying to adjust to the new realities of the contract. Right now a lot of teams are focusing on the playoff battles, but at the appropriate time we will deal with the business matters and come to some sort of accommodation that works for all.”

Speaking from the management perspective, Sabres Chief Operating Officer Dan DiPofi painted a picture of financial health for the once-struggling franchise. “The new CBA has certainly worked for us,” said DiPofi, emphasizing that the cost-certainty and revenue-sharing formulas have allowed teams like Buffalo to be competitive and still make money.

In trying to make sense of why the NHLPA might argue for a lower team cap, DiPofi dove into the minutiae of team revenues, league revenues and how they eventually affect what the players earn. Drawing a bar graph on a sheet of paper, he urged people not to pay as much attention to the floors or caps as to the midpoint. “The average team payroll is around $31 million, and as long as half the teams are below that and half the teams are above that, it works well.” Pointing to the upper end of the range, DiPofi then said, “It’s when more of the teams get drawn to that number that the problems start arising. Because at the end of the day 54 percent is still 54 percent, and if team payrolls are too high, that’s when escrow payments might kick in.”

DiPofi was not unsympathetic to the emotional toll that escrow deductions can take on a player. Agreeing with McKee, he said, “This entire CBA is uncharted territory for the teams and the players, and adjustments are being made as we go along to work within the confines of the agreement in a way that makes sense. But keep in mind that in the end the players will earn 54 percent of gross hockey revenues, the number all parties agreed upon.”

Does that put some of the onus on the players to deliver a product that people will pay to watch? McKee seems to think so. “This is an entertainment business, and we’re here to entertain.” McKee says his fellow players are cognizant that a good on-ice product and better interaction with the fans and the media, translates into more tickets sold and a growing sport. Sounding truly contrite, McKee repeatedly apologized that an entire season had to be lost to work out the new contract. “As a player and also as a fan of the sport, I wish it hadn’t had to go this far.”

The NHL will announce the new team salary thresholds on June 30, and fans, league observers and media pundits will certainly be watching how the newest CBA drama unfolds. Big market vs. small market owners? High-priced superstars vs. rookies and fourth-line players? It should be an interesting offseason.

TARO SEZ…

• Coolest promotional giveaway of the month? How about “Dick Cheney Hunting Vest Night,” where the first 1,000 fans attending the March 17 Las Vegas Wranglers (ECHL) game received a bright orange vest stating, “Don’t shoot, I’m human!”

• The Canadian Hockey League (juniors) regular season is over, and it’s the Moncton Wildcats, coached by Ted Nolan, who take top spot with a 52-15-3 record and 107 points. Gee, why aren’t we surprised?

• March Madness returns to Buffalo! March 15 and 17, 2007 to be exact. All-session passes are $183 and applications are now being accepted at the HSBC Arena box office.

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