The NHL Lockout: A Deep Dive into the Past, Present, and Future of Canada’s Game
Hockey and the Canadian Identity
Hockey is, by far, the most popular sport in Canada and the nation is looked to by countries around the world as the sport’s best.
Even with the balance of Canadian to US teams in the NHL tipping significantly over the years, as well as the Stanley Cup being dominated by the more southern teams for the last few decades, the NHL is still seen as a continued showcase of Canada’s hockey superiority.
So, when the league endures struggles to the extent of an NHL Lockout, it has a huge impact on Canada’s standing as the world’s premier destination for hockey.
What Is an NHL Lockout?
An NHL Lockout is a prolonged period of time during which the National Hockey League doesn’t play games due to an unresolved dispute between the players and the league.
Whenever an NHL Lockout has occurred, the league has seen at least 30 games wiped from the calendar. In one instance, an entire season of NHL action was cancelled due to the prolonged NHL Lockout.
Historical Context of NHL Lockouts
The 1992 Players’ Strike: A Precursor
The 1992 NHL Strike was the first NHL Lockout, but by all accounts, it perhaps should have come about sooner. The National Hockey League Players’ Association was formed in 1967 by Alan Eagleson. He was ousted by the players at the end of 1991 due to him becoming overly familiar with the NHL’s owners. Eagleson was later found guilty of colluding with the NHL’s owners, among other charges.
Almost as soon as Eagleson was removed as the head of the union and Bob Goodenow was brought in, he took several issues to the NHL, including revenue sharing on trading cards, playoff bonuses, pensions, and more. The negotiation deadline passed, and the players voted to go on strike on April 1, 1992. Occurring so close to the playoffs, the NHLPA had a lot of leverage. By April 10, a two-year deal which retroactively began that season, leading to an expanded schedule of 84 games, larger playoff bonuses, and changes to arbitration and free agency, was agreed.
The 1994-95 NHL Lockout
The deal made during the 1991-92 season only lasted until the end of the 1992-93 campaign, putting both the players’ union and the league’s owners on edge at its conclusion.
The focus of these talks was the NHL’s desire to implement a luxury tax on teams that exceeded a certain payroll, but the NHLPA saw through this guise as being the salary cap that they were fervently against. There was a core agreement initially, though: both the NHL and NHLPA wanted to implement revenue sharing to help bolster weaker or smaller market teams.
This was a small point of agreement. While training camps took place, the NHL did not. The 1994-95 NHL Lockout would end up lasting un January 11, 1995, seeing the season cut to 48 games and a total of 468 games being lost. This NHL Lockout came to an end with commissioner Gary Bettman eventually yielding on several points, such as the salary cap, with major market teams pulling away from the NHL’s stance due to the revenue being lost outweighing the potential benefits of the cap and sharing revenue with smaller teams.
The 2004-05 NHL Lockout: A Lost Season
A decade after he oversaw the league’s first major lockout, Gary Bettman was keen to implement a salary cap once again. The NHLPA opposed the salary cap but was in favour of supporting smaller market teams through a different system of revenue sharing. The two parties attempted to come to terms on a collective bargaining (CBA) agreement prior to the season, but it failed, and so, the third NHL Lockout commenced on September 16, 2004. With star players flying out the Europe to compete for a whole season, this time, the NHL would ultimately get its way.
With Goodenow and Bettman heading their respective parties, the NHLPA began to yield to the implementation of a salary cap in the final February negotiations, but the commissioner declined their figure.
On February 16, the NHL became the first North American major league to cancel a whole season due to a labour dispute. In the end, a deal was reached to guarantee players 54 percent of league revenues – which could and did rise – to enforce a salary floor with a cap initially at $39 million, and revenue sharing between teams.
On July 22, the lockout officially came to an end on the 310th day, allowing for the next season to be played in full and the salary cap era to begin.
The 2012-13 NHL Lockout
Following the signing of the eight-year CBA, Goodenow resigned as the executive director of the NHLPA, but that didn’t stop another NHL Lockout from occurring once that CBA expired. Now with Donald Fehr at the helm, who’d led the Major League Baseball Players Association through a strike and lockout before, the NHLPA sought to fend off Bettman’s desire to cut the players’ 57 percent of the revenue share to what would be the equivalent of 43 percent. The season was put into a lockout in September 2012 before the October start, allowing players to compete overseas.
There was a rush of stars crossing the Atlantic, making for rather intriguing odds in the European ice hockey lines. In this NHL Lockout, negotiations were so difficult that, towards the end of November, mediators from the Federal Mediation and Council Service quit after just a couple of days.
In the end, caps of eight years on contract extensions, and revenue sharing spread to $200 million, with an NHLPA-initiated growth fund of $60 million were included. On January 9, a 48-game season commenced. This CBA, following an extension in 2020, lasts through the 2025-26 season.
Root Causes of NHL Lockouts
Collective Bargaining Agreements (CBAs)
Collective bargaining agreements enable the union of the players to have power in negotiations with the league and its owners. This is important because, ultimately, it’s the performances of the players that enables organisations to earn the stacks of cash that they do, and so, they want fair treatment and a fair share.
Revenue Distribution Between Owners and Players
Key to many of the CBA negotiations has been how the league’s owners share their revenue with the players, as well as between large market and smaller market teams. A percentage share of total revenues is spread between the NHL and the NHLPA.
Salary Cap Disputes
It took a whole season being lost for NHL commissioner Gary Bettman to finally get his way and implement a salary cap in 2005. Previously disguised as a luxury tax, the NHLPA long preferred the open market approach that didn’t limit the earnings of its players, but the NHL saw it as a way to guarantee more revenue and allow for better revenue sharing between teams.
Player Contract Terms
One of the aspects of the sport that makes the NHL such a draw for fans and those who are partaking in hockey betting is the combination of physicality, speed, and skill.
This, however, does make injuries commonplace, and so, players prefer to get guarantees in the form of long contracts. Naturally, the NHL’s teams would have preferred players to not be able to negotiate for lengthy deals, but the contract length cap has been set to eight years.
Impact on Stakeholders
Canadian NHL Teams and Owners
During each NHL Lockout, a lot of the leverage for the NHLPA came from the teams and owners losing much more money than the players when games weren’t taking place. In 2012-13, the NHL Lockout was said by the commissioner to be losing the business $20 million per day and half that for players.
Players: From Stars to Prospects
Many star players took their skills abroad, giving European teams a unique opportunity to tap into veteran NHL talents. Those who stayed in North America, however, caused a trickle-down effect, joining AHL teams who’d push some prospects down to the ECHL, and so on.
Fans Across Canada
A whole host of annual hockey events set up by the NHL and beyond were cancelled and fans were forced to just sit and wait for the issues to be resolved.
Local Economies and Small Businesses
Being such a huge and popular league, an NHL Lockout has huge repercussions for local economies and small businesses. All of a sudden, businesses operating in and around arenas that could bank on 40-odd days of high foot traffic went rather cold, while additional spending on surrounding products like beer was also reduced. Of course, where it was available, NHL was removed from sports betting markets, cutting fan engagement there as well.
Broadcasters and Media Companies
With players going overseas, North American broadcasters like ESPN would seek TV rights for those European leagues – specifically, Russia’s KHL. It’s also noted that the 2004-05 NHL Lockout helped to further fuel the poker boom and the classic card game’s rise as a televised spectator sport.
Recovery and Resolution
Negotiation Strategies and Union Dynamics
While groups below them had, on occasion, been brought in to resolve the issues, a lot of the time, negotiations come down to the commissioner of the NHL and the NHLPA executive director discussing terms. However, once those two come to an agreement in principle, the members of the NHLPA need to vote to pass the CBA.
Key Resolutions and Lessons Learned
Ultimately, neither the NHLPA nor the NHL wants to see parts of or a whole season missed – despite commissioner Gary Bettman having overseen three such instances. It’s led to what is currently the longest-term CBA in the NHL’s history and both parties seemingly being more flexible.
Fan Re-Engagement and Brand Repair
The stability that has come since the last CBA was signed along with the demonstration of teams – bar the Arizona Coyotes – being trustworthy and financially secure, as well as the salary cap increasing regularly has helped to repair the NHL brand and get fans re-engaged.
However, many still harbour a grudge against the commissioner who oversaw three NHL Lockouts in under two decades.
Frequently Asked Questions
Why Do NHL Lockouts Happen So Frequently?
NHL Lockouts happened so frequently primarily as a result of the league wanting to move to a salary cap system and limit players’ revenue shares, as well as the teething problems thereafter.
How is a Lockout Different from a Strike?
An NHL Lockout sees the league stop players from working, while a strike sees the NHLPA voluntarily refuse to work.
Who Decides to Initiate a Lockout in the NHL?
The NHL’s commissioner, currently Gary Bettman, initiates a lockout in the NHL.
How Much Money Do Players and Teams Lose During a Lockout?
During the 2012-13 NHL Lockout, the last lockout to date, the commissioner estimated that players were losing between $8 and $10 million per day collectively while teams were losing around twice that.
Were There Any Lockouts That Didn’t Affect Canadian Teams Directly?
Every NHL Lockout affected Canadian teams directly.
Do NHL Players Get Paid During a Lockout?
NHL players can now sign contracts that are, more or less, lockout-proof. This comes by way of signing bonuses, as shown by the stark increase in NHL player contracts featuring a signing bonus for 2026 – the next year for a potential NHL Lockout. Guaranteed salaries and bonuses are paid as usual during a lockout, but regular salaries tend to be frozen should the season be disrupted.
Have Canadian Politicians Ever Intervened in an NHL Lockout?
As NHL Lockouts are labour disputes between the NHL and the NHLPA, Canadian politicians don’t tend to have any powers for intervention, but many have voiced their opinions when the lockouts have taken place.
How Can Fans Stay Involved with Hockey During a Lockout?
Fans can stay involved with hockey during an NHL Lockout by turning to smaller local teams, watching minor league or junior hockey, or even tuning in for the European games that may feature NHL stars.
What’s the Best Way to Ensure Future Lockouts Don’t Happen?
While not the best negotiation practice from the smaller party, getting new CBA negotiations underway long before the expiry of the last would be a clear way to fend against a future NHL Lockout.