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Shea Weber's arbitration: How the Process Works

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Since the pros at ESPN and The Sporting News can't seem to get the story right, I thought it might help to lay out the details of how salary arbitration works in the NHL. League-wide, there are over a dozen players on track for arbitration hearings, but only a few are likely to actually make it to that point. With Shea Weber being the biggest name on that list, his negotiations with the Nashville Predators have been thrown into the limelight.

So follow after the jump as we walk through the process, specifically with the Weber situation in mind...

Star-divide

Who requests arbitration?

The starting point here is to determine which party got things headed in this direction. In this case, the Predators asked for arbitration, which has two main implications:

  • The party on the receiving end of the arbitration filing (in this case the player) gets to choose whether the contract to be awarded will be for one year, or two. (Section 12.9 c of the CBA).
  • Unlike what ESPN and The Sporting News have reported, the team does not have the right to walk away from the arbiter's decision if the salary is too high for their liking, because they're the ones who requested this process (12.10 e).

Both sides make their case

48 hours before the hearing (scheduled for August 2nd), each side is to share with the other a written brief outlining their position. It has to be double-spaced, typed in Times New Roman font, and sealed with a kiss (only that last bit is untrue).

On the day of the hearing (which starts at 9:00 New York time), each side gets 90 minutes to present their case, which is split between their initial presentation, and a rebuttal period. If, in the eventuality that the side going second introduces new material during their rebuttal, then the first side may get an additional 10 minutes to respond to those matters.

As to how these cases can be built, the following are cited as appropriate pieces of evidence:

  • Official statistics describing the player's offensive and defensive performance. Yes, this even includes the RTSS stuff like hits, giveaways, and takeaways (ugh).
  • Games played, and the variety of injuries/illnesses which played into that.
  • Length of service in the NHL and with that particular team.
  • "Overall contribution of the Player to the competitive success or failure of his Club in the preceding season".
  • "special qualities of leadership or public appeal". Yup, The Beard itself has value.
  • The performance and salary of players who are specifically described as comparable by either party in the arbitration hearing. Only salaries from players who were also Group 2 (restricted) Free Agents at the time their contracts were signed are considered here. So ignore comparisons to Zdeno Chara, Christian Ehrhoff, Chris Pronger, Brian Campbell, and other guys who were unrestricted at the time of their deals. Duncan Keith (13 years, $72 million), Dion Phaneuf (6 years, $39 million) and Brent Seabrook (5 years, $29 million), however, are another matter.

As to what is off-limits as evidence?

  • The salary of players not described as comparables.
  • Previous qualifying offers made by the team, or any other offers that took place along the way to arbitration.
  • "Testimonials, videotapes, newspaper columns, press game reports or similar materials." Hmm... I'm guessing blog posts fall under that category.
  • "The financial condition of the Club or the League". Sorry, no small-market discount.
  • Arbitration awards from 2005-6, or other salary info from before the current CBA (not that this would likely be an issue anyway).

The list of Comparable Players is something that's actually drawn up well in advance of the hearing, dictated by the CBA to take place in early June (12.9 g v), and updated over the summer as other relevant contract signings take place. The two sides in the arbitration then select from that list the players and salaries which they deem to best represent their case. The arbiter can only consider the Comparable Players who are cited by either side during the hearing, they can't just choose another name off that list on their own.

Sequence of Events

Since Weber's is a case of team-elected arbitration, the team gets to state their case first, followed by the player's side. Then each gets a chance to rebut the other's case, and if new information gets brought into the discussion during the player's rebuttal, as noted above, it's possible that the team could get an additional 10 minutes to respond.

After the hearing completes, the arbiter has 48 hours to issue a decision. Up until that decision comes out, the two sides can still agree to a contract. The arbiter's ruling will dictate the salary for the duration of the contract (which doesn't have to be the figure requested by either side, it can be different), and include "a brief statement of the reasons for the decision, including identification of any comparable(s) relied on."

So that's the process in a nutshell. Now, let's just hope it never gets to that point, OK?

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Excellent

Just an excellent job Dirk.

David Singleton w/ HockeyIndependent

by David Singleton on Jul 19, 2011 11:57 AM EDT reply actions  

so what you are saying is....

…. ESPN writers like Burnside are idiots??

by djzielin on Jul 19, 2011 12:08 PM EDT reply actions  

Well yeah, but we already knew that, didn’t we?

by Predaceous on Jul 19, 2011 12:54 PM EDT up reply actions  

Well at least Burnside is a Preds fan idiot.

He actually likes the Preds after coming down for one of the Preds players welcoming parties at BNA during the Nucks series.

by SFPredsFan on Jul 19, 2011 2:28 PM EDT up reply actions  

Seriously? Are you calling me an idiot? Did you ever read all the articles he wrote calling for the franchise’s relocation and how he crapped on our attendance year after year? He pretty much echoed all the garbage you usually hear from Canadian elitists, only he was in Atlanta.

Burnside has never been a friend to the Predators. If he’s playing nice now it’s only due to the irony of his hometown Thrashers moving rather than the Predators. Here’s just a sample of his writings.

(By the way, this is not about Canadian hockey snobs, as someone wrote in a Nashville paper this week. I love the city. It is one of the best road trips in the NHL, and those who play there say it’s a fantastic place to live. But, anyone who claims this market is better for the league than Hamilton is taking Barry Bonds’ cat tranquilizers.)

by Predaceous on Jul 20, 2011 9:15 AM EDT up reply actions  

I think he meant Burnside was a “Preds fan idiot”, i.e. a Preds fan working for ESPN.

Agreed, though, he’s usually been a critic of Nashville as a hockey market over the years.

Managing Editor of On the Forecheck, SB Nation's blog covering the Nashville Predators, and HockeyGearHQ, a site devoted to news, reviews, and deals on hockey equipment and accessories. Catch me on Twitter, or join OTF on Facebook!

by Dirk Hoag on Jul 20, 2011 9:30 AM EDT up reply actions  

can we then claim reckless abandonment since he shaved off the beard? I think it will drive the price down.

60% of the time it works every time

by Creeping Death on Jul 19, 2011 12:14 PM EDT reply actions  

I wonder how much more he woulda got if.....

Weber had a Brian Wilson length beard? He’s looking more like he plays with ZZ Top every day.

by SFPredsFan on Jul 19, 2011 2:30 PM EDT up reply actions  

I’m going to guess that the Phaneuf contract will be at the top of the player’s list, and not so much the team’s.

by Frank Reich Revolution on Jul 19, 2011 2:31 PM EDT reply actions  

Dirk, I had a few more questions about the process after arbitration:

If the case goes all the way through arbitration, and a player is in a 1 or 2 year contract with terms decided by the arbitrater, are there restrictions or limitations on trading that player at any point during the contract term, or restrictions on extending the contract after the arbitrater rules?

What is the general rule regarding extending a contract? Can a deal be re-negotiated in the middle of the contract term? In the final year? Can it only be extended, but not modified? Are there signing bonuses – and if so, how are those figured as far as the team being below the midpoint in actual salary for revenue sharing purposes?

Thanks for all the good info!

by Popov on Jul 19, 2011 2:37 PM EDT reply actions  

So many questions!

1. Contracts cannot be modified.
2. During the final year of a contract (which begins July 1), an extension can be signed which takes effect after the current contract completes.
3. The only bonuses allowed are for players on entry-level contracts, and those for players who are 35+.
4. The midpoint issue is determined by total salary paid during the season, so any bonuses earned would be included.
5. I don’t believe there are any restrictions on trading a player after you’ve been through arbitration with them. There is such language in the case of a team matching the Offer Sheet for a restricted free agent (if you match the deal and keep him, you really have to keep him for at least a year), but there’s nothing like that tied to arbitration.

Managing Editor of On the Forecheck, SB Nation's blog covering the Nashville Predators, and HockeyGearHQ, a site devoted to news, reviews, and deals on hockey equipment and accessories. Catch me on Twitter, or join OTF on Facebook!

by Dirk Hoag on Jul 19, 2011 2:53 PM EDT up reply actions  

  That leads to another question. We were over 52M in total salaries paid out last season (just under 51M cap hit) and the cap midpoint was under 52M, so if it’s actual salaries paid out, wouldn’t we have failed to get full revenue sharing money? That’s why I’ve thought it was the cap hit that determined revenue sharing.

  See what you can dig up there. :)

Trotz says "we don't need more offense" and Poile "likes where we are right now". We're doomed!!!

by Grizzledbear on Jul 19, 2011 5:55 PM EDT via mobile up reply actions  

I'd question your $52 million figure

Remember, we don’t know if Colin Wilson or the other guys on entry-level deals earned their full bonuses. The $52.2 million from NHLNumbers is based on cap hit (which includes bonus money), not actual salary.

CapGeek says $50.9 million once bonuses are backed out, but again they’re dealing with cap hit, not actual salary. I’m guessing their number is closer to the actual result, though.

Managing Editor of On the Forecheck, SB Nation's blog covering the Nashville Predators, and HockeyGearHQ, a site devoted to news, reviews, and deals on hockey equipment and accessories. Catch me on Twitter, or join OTF on Facebook!

by Dirk Hoag on Jul 19, 2011 6:54 PM EDT up reply actions  

  I was adding up the salaries in the actual payout column on nhlnumbers, which roughly seems to be a few hundred thousand less in the actual payout amount compared to the cap hit amount. Wilson’s bonus would seem to be the make or break point in whether we stayed under the midpoint or not in actual salaries then. Be interested to find out if he hit all the bonus targets or not.

Trotz says "we don't need more offense" and Poile "likes where we are right now". We're doomed!!!

by Grizzledbear on Jul 19, 2011 7:28 PM EDT via mobile up reply actions  

Thanks, Mom

Managing Editor of On the Forecheck, SB Nation's blog covering the Nashville Predators, and HockeyGearHQ, a site devoted to news, reviews, and deals on hockey equipment and accessories. Catch me on Twitter, or join OTF on Facebook!

by Dirk Hoag on Jul 19, 2011 3:36 PM EDT up reply actions  

Damn the Beard...

It’ll raise his salary by $.5-.8 million at least, if it comes to it.

"He uses statistics as a drunken man uses lamp-posts--for support rather than
illumination."

by Smashvillain on Jul 19, 2011 8:42 PM EDT reply actions  

QUESTION

does weber decide the term of the contract before or after knowing the amount?

by predswilrule on Jul 19, 2011 9:53 PM EDT reply actions  

before

Managing Editor of On the Forecheck, SB Nation's blog covering the Nashville Predators, and HockeyGearHQ, a site devoted to news, reviews, and deals on hockey equipment and accessories. Catch me on Twitter, or join OTF on Facebook!

by Dirk Hoag on Jul 19, 2011 11:00 PM EDT up reply actions  

Prediction?

Does he take a 1- or 2-year deal? My bet is that he goes for 1-year. Why? He’s at the peak of his value, and he’ll get a huge payday next off-season, particularly if a certain Norris-winner in Detroit hangs them up, and the Wings go looking for a replacement.

DUE TO THE LENGTH OF NHL HOCKEY
SKATE ELECTRIC WILL NOT BE SEEN

by docciavelli on Jul 20, 2011 1:09 PM EDT up reply actions  

If he goes for the 1-year fine, he’s still an RFA. Detroit can hand over 4 1st-rounders please!

Hockeymetricians, they're ever so pious. Are they doing real science or confirming their bias?

by DonBorvio on Jul 20, 2011 1:11 PM EDT up reply actions  

4 first rounders

from Detroit might as well be second rounders. No, we want talent for talent, not draft picks that will pay years down the road.

by musamonster on Jul 20, 2011 2:12 PM EDT up reply actions  

Yet another question

Regarding the process: Is this a situation where each side presents a number and the arbiter selects one of the numbers based on the presentations?

by PantsBoyUSA on Jul 20, 2011 1:58 PM EDT reply actions  

2nd to last paragraph above has your answer

Managing Editor of On the Forecheck, SB Nation's blog covering the Nashville Predators, and HockeyGearHQ, a site devoted to news, reviews, and deals on hockey equipment and accessories. Catch me on Twitter, or join OTF on Facebook!

by Dirk Hoag on Jul 20, 2011 2:02 PM EDT up reply actions  

Stellar.

The man know his CBA. Nice job outta you, neighbor!

And BTW, Jack says hello… ;)

by ajinnashville on Jul 20, 2011 3:32 PM EDT reply actions  

If it makes the MSM feel any better, I just read a blog that said Weber’s arbitration is tomorrow. Uh. August 2nd?

This is a very useful corrective to all the misinformation swirling out there. Kudos.

In Dinglebarn We Trust -- JftC

by Niesy on Jul 20, 2011 8:03 PM EDT reply actions  

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