what is hockey arbitration ?

Introduction

Salary arbitration is a process used in the National Hockey League (NHL) to settle contract disputes between teams and certain restricted free agents. A restricted free agent is a player who has completed his entry-level contract but has not yet played for seven seasons in the NHL.

Who can go to salary arbitration?

Only restricted free agents can go to salary arbitration. To be eligible, a player must have played at least two seasons in the NHL, and his team must have made him a qualifying offer. A qualifying offer is a one-year contract that the team is offering the player. If the player does not sign the qualifying offer, he can file for salary arbitration.

The arbitration process

The salary arbitration process is as follows:

1. The player and the team submit briefs to the arbitrator. The briefs outline the player’s and team’s arguments for their respective salary demands.
2. The player and the team appear before the arbitrator for a hearing. The hearing is typically two hours long.
3. The arbitrator then makes a decision. The arbitrator’s decision is final and binding on both the player and the team.

Benefits of salary arbitration

There are several benefits to salary arbitration for both players and teams.

• For players: Salary arbitration gives players a chance to have their salaries determined by a neutral third party. This can be helpful for players who feel that their teams are not offering them fair salaries.
• For teams: Salary arbitration can help teams to avoid lengthy and expensive contract negotiations. If a team and a player cannot agree on a contract, they can go to arbitration and have the issue resolved quickly.

Drawbacks of salary arbitration

There are also some drawbacks to salary arbitration.

• For players: Salary arbitration can limit a player’s earning potential. If the arbitrator’s decision is lower than the player’s desired salary, the player will not be able to earn more money.
• For teams: Salary arbitration can be unpredictable. The arbitrator’s decision may be higher or lower than either the player’s or team’s desired salary. This can make it difficult for teams to budget for their salaries.

Conclusion

Salary arbitration is a complex process, but it can be a valuable tool for both players and teams. It allows players to have their salaries determined by a neutral third party, and it can help teams to avoid lengthy and expensive contract negotiations.