Negotiating on Thin Ice: The

2004-2005 NHL Dispute (A)

Submitted By:
Group 10
                                    Gubbala Bhavana Sravanthi-PGP10083
Kakumanu Keerthi Priya-PGP10086
K.N.L.Manasa-PGP10087
KRRSailakshmi-PGP10088
M Aishwarya-PGP10089
Shema Kanak Lakra-PGP10110
 Background
• Bargaining agreement (CBA) between the National Hockey League (NHL) and
the National Hockey League Players' Association (NHLPA) expired on
September 15, 2004
•  The two sides had failed to negotiate a new CBA by that date
• NHL Commissioner Gary Bettman locked out the players
• No hockey would be played
• No revenues would be collected
• No salaries would be paid
• Key issues in the negotiation were
• The league's demand for a salary cap
• The linking of salaries to league revenues

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 Protagonists

NHL - Gary Bettman , Bill Dalyii

NHLPA - Bob Goodenow, TakSashin

Players

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 Interests
Minimum salary cap for pl
ayers Value
Salary to revenue tie up
Increase no of game
Added benefits
Maximum
compensation for players

BATNA
NHL- Close operations ZOPA
NHLPA- agreement on pre $43 million to $50
sent deal
Players- Move to Million
other clubs

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 During Negotiation

•  We opened our negotiation by identifying the key issues

in the negotiation.
• I. Salary Cap
• II. Salary to revenue relationship
•  Anchored Price- $43 Million
•  Agreed Price- $ 46.5 Million
•  65% revenue to salary linkage

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 Key Learnings

•  By adding more value, both the parties can be satisfied as they are

more likely to accept one or the other value proposition.

•  In order to reach on a common solution, it is important to empathize

with other party.

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Thank you