What is salary arbitration in the NHL?

Question

So I've always thought of myself as a pretty big hockey fan but I have no idea what that means in the NHL. I know that both a team or a player can file for it. help! Thanks

Answer 1

A player not eligable for free agency and unable to work out a deal for a new contract can have his contract settled by a court type system. Likewise for a team unable to come to terms with a player once he is past his entry level contract. Both sides post a dollar value on what they believe is fair compensation for the player and can argue their case before the "Arbitrator". He determines who is right or can suggest a figure somewhere in between. While his decision is not legally binding (as it is in some sports) it is generally accepted. The Arbitrator's decision is for one year contracts with no bonus clauses, but is often used as the base for longer term contracts which can over-ride an Arbitrators decision.

During an arbitration hearing clubs try to keep the players salary lower by pointing out a player's shortcomings, often leaving the player bitter.

Answer 2

Salary arbitration is where a third party determines the salary for the player. This third party is neutral, and does not have an interest in the team or the player. Both sides submit documentation to support their position, and both sides agree to abide by the arbitrator's decision.