ARTICLE 12: SALARY ARBITRATION
12.1 Eligibility for Player or Club Election of Salary Arbitration.
(a) A Player is eligible for salary arbitration if the Player meets the qualifications set forth in the following chart and in Section 12.1(b) below:
First SPC Signing Age Minimum Level of Professional
Experience Required to be
Eligible for Salary Arbitration
18-20 4 years professional experience
21 3 years professional experience
22-23 2 years professional experience
24 and older 1 year professional experience
A Player aged 18 or 19 earns a year of professional experience by playing ten (10) or more NHL Games in a given season. A Player aged 20 or older (or who turns 20 between September 16 and December 31 of the calendar year in which he signs his first SPC) earns a year of professional experience by playing ten (10) or more Professional Games under an SPC in a given season.
(b) Only Players who qualify as Restricted Free Agents as described in Section 10.2 of this Agreement, who meet the qualifications in Section 12.1(a) above, and who have not signed an Offer Sheet are eligible either to elect salary arbitration or be subject to a Club-elected salary arbitration.
(c) As used in this Article, "age," including "First SPC Signing Age," means a Player's age on September 15 of the calendar year in which he first signs an SPC regardless of his actual age on the date he signs such SPC.
12.2 Notice of Player Election of Salary Arbitration.
A Player (or a Player's Certified Agent, acting on the Player's behalf), electing salary arbitration must do so by making a written request, in accordance with Exhibit 3 hereto, utilizing the form attached hereto as Exhibit 23, by facsimile to Central Registry, the NHLPA and the Player's Club by not later than 5:00 p.m. New York time on July 5 in the League Year in which such Player is eligible for salary arbitration.
12.3 Eligibility for Club-Elected Salary Arbitration. Subject to subsections (c) and (d) below and the eligibility requirements set forth in Article 12.1, a Club will have the right to elect to take a Player to salary arbitration under the following conditions:
(a) Club-Elected Salary Arbitration For Players With Paragraph 1 NHL Salaries plus Signing, Roster, and Reporting Bonuses Greater Than $1,500,000 In The Prior League Year.
(i) If a Player who is otherwise eligible to receive a Qualifying Offer and become a Group 2 Restricted Free Agent had a Paragraph 1 NHL Salary plus Signing, Roster and Reporting Bonuses in excess of $1,500,000 in the aggregate in the final League Year of his most recent SPC, a Club may elect to file for salary arbitration to determine the Player's Paragraph 1 Salary for the upcoming League Year in lieu of making a Qualifying Offer to such Player.
(ii) In any salary arbitration that takes place pursuant to this Section 12.3(a), the Salary Arbitrator may not award the Player a Paragraph 1 Salary that is less than eighty-five (85) percent of the aggregate sum of Player's Paragraph 1 Salary plus Signing, Reporting and Roster Bonuses in the final League Year of his most recent SPC.
(b) Club-Elected Salary Arbitration For Players Who Receive Qualifying Offers.
(i) If a Group 2 Restricted Free Agent has not accepted his Club's Qualifying Offer, nor filed a request for Player-elected salary arbitration in accordance with Section 12.2 above, the Club may elect to file for salary arbitration to determine that Player's Paragraph 1 Salary for that League Year.
(ii) If a Club elects salary arbitration in accordance with this subsection, the Club's offer in salary arbitration must be equal to or higher than the Player's aggregate Paragraph 1 Salary plus Signing, Reporting and Roster Bonuses in the final League Year of the Player's SPC.
(c) A Player will be subject to only one Club-elected salary arbitration in his career. Notwithstanding Section (a) or (b) above, a Player as to whom a Club has elected salary arbitration, regardless of whether a hearing took place in connection with that election, is no longer eligible for Club-elected salary arbitration. If a Club subsequently elects to take such a Player to salary arbitration, that election will be null and void.
(d) Notwithstanding Section (a) or (b) above, a Club may exercise its right to elect salary arbitration not more than twice per League Year. If a Club elects salary arbitration more than twice per League Year, any subsequent election after its second election will be null and void.
12.4 Notice of Club Election.
(a) A Club electing salary arbitration pursuant to Section 12.3(a) above must do so by making a written request, in accordance with Exhibit 3 hereto, utilizing the form attached hereto as Exhibit 22, by facsimile to the parties listed in Section (c) below by not later than 5:00 p.m. New York time on the later of June 15 or 48 hours after the conclusion of the Stanley Cup Finals in the League Year prior to the League Year for which the Club seeks to determine a Player's Paragraph 1 Salary by arbitration.
(b) A Club electing salary arbitration pursuant to Section 12.3(b) above, must do so by making a written request, in accordance with Exhibit 3 hereto, utilizing the form attached hereto as Exhibit 22 by facsimile to the parties listed in Section (c) below, during the period commencing upon the Player's deadline to select salary arbitration and continuing for 24 hours thereafter (i.e., commencing July 5 at 5:00 p.m. New York time and ending July 6 at 5:00 p.m. New York time).
(c) The Player; the Player's primary Certified Agent, if any; National Hockey League Players' Association; and National Hockey League.
12.5 Procedural Issues.
(a) An election by a Player or a Club of salary arbitration made in accordance with the provisions herein, shall give to the Salary Arbitrator jurisdiction in the dispute with respect to the other party also. Subject to Section 12.10, the Salary Arbitrator's decision shall be final and binding on the parties. The Club and the Player shall sign an SPC promptly thereafter, effective as of the date the Salary Arbitrator's decision is issued, for the League Year(s) for which the request for salary arbitration was made under this Article, setting out the terms of the Salary Arbitrator's decision. The terms of the award of the Salary Arbitrator shall not be modified in any respect.
(b) Only the dispute with respect to the terms of one (1) SPC shall be considered in any one hearing.
(c) The NHLPA and the NHL are responsible for the procedural steps described herein and shall act on behalf of the Player and the Club, respectively. All communications with the Salary Arbitrator, other than during the hearing, shall be only by and through the NHLPA and the NHL.
12.6 Selection of Salary Arbitrators. The League and the NHLPA shall jointly appoint eight (8) Salary Arbitrators who are members of the National Academy of Arbitrators.
12.7 Scheduling.
(a) On December 5th of each League Year, the parties shall in writing, request each Salary Arbitrator to provide seven (7) available dates for the next League Year's salary arbitrations – with the dates distributed evenly during the salary arbitration period. The dates provided by the Salary Arbitrators shall comprise the salary arbitration calendar (the "Salary Arbitration Calendar"). No Salary Arbitrator shall thereafter be asked to change or add any date except upon the mutual agreement of the parties. If a replacement Salary Arbitrator is hired after December 5th, then the parties will follow the same process for such replacement Salary Arbitrator.
(b) On the first business day following the final date for a Club to request salary arbitration pursuant to Section 12.3(b) above, the League and the NHLPA shall jointly compile a list of all Player and Club requests, listed by Player in alphabetical order (the "Player List"). The Player List shall also set forth for each Player: (i) his primary Certified Agent, if any, as set forth in the Certified Agent List and (ii) his Club. The Player List may not be changed for the remainder of the process outlined in this Section.
(c) After the NHL and NHLPA have compiled the Player List, salary arbitrations shall be scheduled as follows:
(i) The NHL and NHLPA shall flip a coin to determine which party shall begin the process set forth in subsection (ii) below.
(ii) The party winning the coin-flip set forth in subsection (i) above shall select a Player from the Player List and shall assign such Player to a particular Salary Arbitrator on one of such Salary Arbitrator's available dates, as indicated on the Salary Arbitration Calendar. The other party will then follow the same process until every Player on the Player List for whom Central Registry has not yet received an executed SPC has been assigned a hearing date and a Salary Arbitrator. Once so assigned, a Player's hearing date and Salary Arbitrator may not thereafter be changed without the mutual consent of the NHL and the NHLPA.
(iii) The only restrictions on a party's ability to assign a Player to a particular Salary Arbitrator on one of such Salary Arbitrator's available dates, as indicated on the Salary Arbitration Calendar, shall be as follows: No Player shall be assigned a hearing date if it would result in: (x) a Club having more than one (1) salary arbitration on such date; (y) a Certified Agent having two (2) Players for whom such Certified Agent is listed as the Primary Certified Agent on the Certified Agent List, scheduled to have their salary arbitrations on the same date; or (z) a Salary Arbitrator being assigned more than one (1) salary arbitration per day, provided, this restriction in (z) will not apply in the event there are more than fifty-six (56) Players for whom hearing dates must be scheduled, in which case every available date for all Salary Arbitrators must first be utilized before any Salary Arbitrator may be assigned a second salary arbitration on a particular day.
(d) Except upon agreement of the NHL and NHLPA, every salary arbitration shall commence at 9:00 a.m. New York time.
(e) The League and the NHLPA shall also schedule the location for the salary arbitration hearings and the League and the NHLPA shall immediately notify the Club and the Player, respectively, of the location, date and time of the their salary arbitration hearing. The parties shall use their best efforts to schedule all of the salary arbitration hearings within forty-eight (48) hours of the compilation of the Player List. All salary arbitration hearings shall be completed in accordance with the Critical Date Calendar as set forth in Exhibit 15.
12.8 Termination of Salary Arbitrator(s). The League and the NHLPA shall each have the right to terminate the appointment of a Salary Arbitrator(s) during the period commencing on the date the final salary arbitration award is issued and ending on December 5th of such League Year at 5:00 p.m. New York time. The party who did not terminate the Salary Arbitrator(s) shall, within ten (10) days of receiving the termination notice, submit a list of three names to the terminating party. Within ten (10) days of receiving the names, the terminating party shall strike two of the names and the remaining person shall be the new member of the salary arbitration panel.
12.9 Rules of Procedure. The rules of procedure for salary arbitration proceedings shall be as follows:
(a) Attendance at Hearings.
The Player, the Club, the League and the NHLPA are each party to the proceeding. In addition to representatives of the parties, any other person(s) agreed upon by the League and the NHLPA may also attend.
The Salary Arbitrator may sequester witnesses until they testify, with the exception of the Player and the Club's primary representatives.
(b) Written Submission.
The NHLPA and the League shall be responsible for ensuring compliance with this Agreement. The parties shall file their respective briefs with the Salary Arbitrator and shall simultaneously exchange briefs with each other at least forty-eight (48) hours prior to the scheduled opening of the hearing. A party that fails to timely file and exchange a brief waives the right to file any brief, unless excused by the Salary Arbitrator. Each brief shall be limited to 40 pages, exclusive of indices, tables of contents, and exhibits. The minimum spacing shall be double, and the font shall be Times New Roman. In addition, rebuttal exhibits may not constitute an additional brief.
(c) Election of Term.
The party against whom an arbitration election was filed (i.e., the Club in Player-elected salary arbitration and the Player in Club-elected salary arbitration) shall elect in its brief whether the arbitration award shall be for a one or two-year SPC. Failure to make such an election shall be deemed to constitute an election for a one-year SPC. Notwithstanding the foregoing: (i) the Club or the Player, as the case may be, shall be entitled to elect only a one-year SPC if the Player is within one (1) year of attaining the age and experience level required for Group 3 Player status; and (ii) if the Player has attained or is within one (1) year of attaining the experience level required for Group 5 Player status and the Club has elected a two-year SPC, the Player may, at the end of the first year of such SPC, elect to void the second year of the SPC if the Player's Paragraph 1 NHL Salary for the first League Year of such SPC is less than the Average League Salary for such League Year and, upon making such election, such Player shall (if he otherwise qualifies at such time) become a Group 5 Player and be entitled to the rights set out in Section 10.1(b). If the Club elects a one-year award for a Player within one (1) year of attaining the experience level required for Group 5 Player status, then at the end of that year, the Player may if he so elects, and if he qualifies, become a Group 5 Player at that time and be entitled to the rights set out in Section 10.1(b).
(d) Conduct of the Hearings.
The Player and the NHLPA, jointly, and the Club and the League, jointly, shall each have a maximum of ninety (90) minutes to present its case and may allocate such ninety (90) minutes between its direct case and its rebuttal case in any manner it so chooses in its sole discretion. If the party presenting second has raised new substantive issues or introduced additional comparable Players for the first time during its rebuttal case, then the party presenting first shall, upon the request of the NHLPA or the League only (whichever is the applicable party), have ten (10) minutes for surrebuttal, which may be used solely to address those new issues or new comparable Players and may not be used for additional closing arguments.
(e) Participation at the Hearings.
A Player shall be represented at the hearing by the NHLPA unless the NHLPA chooses to delegate its authority in whole or in part, with the Player's consent, to the Player's representative. Any other party may be represented by counsel, who may participate fully in the hearing on behalf of that party.
(f) Arbitration in the Absence of a Party.
The hearing may proceed in the absence of any party who, after due notice, fails to appear or to seek and obtain a postponement pursuant to subsection (m) below. A decision shall not be made, however, solely upon the default of a party. The Salary Arbitrator shall require the other party to submit such evidence as he may need for making the decision.
(g) Evidence.
(i) Subject to the limitations set forth in subsection (iii) below, the parties may present whatever witnesses, affidavits, documents and other relevant evidence they choose to present at the hearing. The Salary Arbitrator, on behalf of any party, or on his own behalf, may call witnesses or request documents or other evidence as he deems necessary to resolve the dispute. The Salary Arbitrator in his discretion shall be the judge of the relevancy and materiality of the evidence offered and/or the weight, if any, to attach to any evidence and shall not be bound by any formal legal rules of evidence. All evidence shall be presented in the presence of all the parties, unless a party is in default, having failed to appear for the hearing, or has waived his right to be present. Statistical evidence asserted in a party's affirmative case must be included in such party's brief in order to be admissible.
(ii) The parties may offer evidence of the following:
(A) the overall performance, including official statistics prepared by the League (both offensive and defensive), of the Player in the previous season or seasons;
(B) the number of games played by the Player, his injuries or illnesses during the preceding seasons;
(C) the length of service of the Player in the League and/or with the Club;
(D) the overall contribution of the Player to the competitive success or failure of his Club in the preceding season;
(E) any special qualities of leadership or public appeal not inconsistent with the fulfillment of his responsibilities as a playing member of his team;
(F) the overall performance in the previous season or seasons of any Player(s) who is alleged to be comparable to the party Player whose salary is in dispute; and
(G) The compensation of any Player(s) who is alleged to be comparable to the party Player, provided, however, that in applying this or any of the above subparagraphs, the Salary Arbitrator shall not consider a Player(s) to be comparable to the party Player unless a party to the arbitration has contended that the Player(s) is comparable; nor shall the Salary Arbitrator consider the compensation or performance of a Player(s) unless a party to the arbitration has contended that the Player(s) is comparable.
(iii) The following categories of evidence are inadmissible and shall not be considered by the Salary Arbitrator:
(A) Any SPC the term of which began when the Player party to such SPC was not a Group 2 Player;
(B) Any SPC entered into by an Unrestricted Free Agent, including SPCs signed by Players after the Player's Club has exercised a walk-away right pursuant to Section 12.10;
(C) The SPC of any Player who is not being offered as a comparable Player to the party Player;
(D) Qualifying Offers made by the Club pursuant to Section 10.2(b);
(E) Any prior offers or history of negotiations between the Player and the Club;
(F) Testimonials, videotapes, newspaper columns, press game reports or similar materials;
(G) Any reference to actual or potential walk-away rights;
(H) Any award issued by a Salary Arbitrator as to which a Club exercised its walk-away rights pursuant to Section 12.10;
(I) The financial condition of the Club or the League;
(J) References to a Club's Upper or Lower Limit, or to the Players' Share;
(K) Any salary arbitration award issued in 2005-2006; or
(L) Any reference to any salary or other compensation information in any salary arbitration opinion that took place prior to the execution of this Agreement. If any salary arbitration opinion issued prior to the execution of this Agreement is cited as precedent, all references to any Player's Player Paragraph 1 Salary or other compensation information will be redacted.
(iv) In presenting the compensation of any Player offered as a comparable in a brief, the first reference thereto shall be a complete breakdown by component parts (clearly identified) of all such Player's compensation figures in the same format as the Joint Exhibit.
(v) The League and the NHLPA shall each create an exhibit, the Comparable Exhibit, setting forth the compensation terms contained in all SPCs of Players eligible to be used as comparables for the purposes of that year's salary arbitrations. The parties shall exchange such Comparable Exhibits by June 5. A conference call will be held within three (3) business days of the exchange to identify differences and/or issues, if any, between the two versions of the Comparable Exhibits. All issues/differences are to be settled within three (3) business days of conference call. The parties may then use extracts from the Comparable Exhibit to apprise the Arbitrators of the compensation of those Players alleged by such party to be comparable to the Player who is the subject of the Arbitration.
(vi) The full Joint Exhibit and Comparable Exhibit shall not be distributed to the Salary Arbitrators. The Joint Exhibit and the Comparable Exhibit shall promptly be updated to reflect the following:
(A) the issuance of a salary arbitration decision;
(B) verified settlement of any salary arbitration proceeding; and
(C) verified recent signings of any other Player.
(D) such updates to be provided by each party to the other on a daily basis, business days only, from the date of initial exchange of the Comparable Exhibit through and including the 5th day prior to the beginning of the salary arbitration period. All updates following such period through and including conclusion of the salary arbitration period shall be made on a daily basis, without limitation to business days. Daily updates shall be exchanged via fax and email. Follow up conference calls will be held on a timely basis, as needed, to settle any differences/issues arising from such daily updates.
In the absence of a written agreement, the parties shall, in good faith, take all necessary steps in advance of the start of the hearing to jointly confirm and memorialize the occurrence of any of the events described in paragraphs (A), (B) and (C) above. The steps shall include, but are not limited to, a conference call by and between representatives of the parties no later than three (3) hours before the hearing begins.
Items (A) through (C) above, although admissible in the context of a salary arbitration hearing, shall not be deemed to constitute a contract or a substitute for an appropriately filed, registered and approved SPC.
The joint submission of the above defined supplemental evidence should not prejudice either party's position as to the relevance, weight or value attributable to any component of the package at issue.
The League and the NHLPA jointly shall provide such Salary Arbitrator with the updated information for any Player alleged to be a comparable Player during such arbitration, provided such settlement or signing is accomplished at least three (3) hours prior to the commencement of such hearing or such salary arbitration decision issues before the close of such hearing. Any signings or settlements accomplished after commencement of a hearing shall be inadmissible for all purposes for such hearing.
(vii) When dealing with a Group 2 Player whose current SPC began before he reached the age necessary to be a Group 3 Unrestricted Free Agent and who would be a Group 3 Unrestricted Free Agent at the end of his current SPC, the following rules shall apply:
(A) His current SPC is on the Comparable Exhibit for its entire term.
(B) If the Player signs a new SPC, during the term of his current SPC:
(1) the new SPC will not be included on the Comparable Exhibit if the new SPC begins after the current SPC ends.
(2) the new SPC will be included on the Comparable Exhibit if the new SPC revises the current SPC and adds additional term.
(C) If a Player has previously signed an SPC while a Group 3 Unrestricted Free Agent, any subsequent SPC signed by him will not be included on the Comparable Exhibit.
(h) Statistics.
The League shall obtain and provide to the NHLPA any statistics relative to any aspect of Player performance: (i) kept or maintained by the League; or (ii) retained by any Club. The NHLPA shall provide to the League any statistics relative to any aspect of Player performance kept or maintained by the NHLPA. The Commissioner shall use his full authority to ensure each Club's cooperation in the full and complete implementation of this provision. Such statistics shall be so provided within four (4) weeks after the conclusion of the Regular Season for Regular Season statistics and within two (2) weeks after the conclusion of the Playoffs for Playoff statistics. Such statistics shall be provided in electronic format if so maintained that way, otherwise they shall be provided in hard copy. The parties further agree that the January 10, 2003 grievance award regarding RTSS statistics shall remain in full force and effect for the term of this Agreement and shall be sent to the NHLPA electronically.
(i) Testimony.
All witnesses and persons who testify orally at the hearing shall be made available for cross-examination.
(j) Transcripts.
Transcripts will be taken in salary arbitration hearings, with costs of the court reporter to be shared equally. Whichever party requests a transcript, either expedited or not, said party will pay the cost. If both parties wish to obtain transcripts, then they shall bear the costs equally.
(k) Order of Proceedings.
Unless otherwise determined by the Salary Arbitrator or mutually agreed to by all parties, the order of proceedings shall be as follows:
(i) Player-Elected Salary Arbitration.
(A) affirmative case of the Player and the NHLPA;
(B) affirmative case of the Club and the League;
(C) rebuttal and closing argument of the Player and the NHLPA;
(D) rebuttal and closing argument of the Club and the League;
(E) surrebuttal by the Player and/or the NHLPA, where permitted in accordance with subsection 12.9(d) hereof.
(ii) Club-Elected Salary Arbitration.
(A) affirmative case of the Club and the League;
(B) affirmative case of the Player and the NHLPA;
(C) rebuttal and closing argument of the Club and the League;
(D) rebuttal and closing argument of the Player and the NHLPA;
(E) surrebuttal by the Club and the League, where permitted in accordance with subsection 12.9(d) hereof.
(l) Reopening of Hearings.
At any time before a decision is issued, a hearing may be reopened by the Salary Arbitrator on his own motion or on motion of any party for good cause shown.
(m) Continuance, Adjournments or Postponements.
There shall be no continuance or adjournment of a hearing, but the commencement of a hearing may be postponed by the Salary Arbitrator upon the application of the NHLPA or the League only, based on substantial cause. Any request for the postponement of a scheduled hearing shall be made to the Salary Arbitrator in writing, with copies by fax to all other parties so that the parties may, if they desire, respond immediately to the Salary Arbitrator.
(n) Salary Arbitration Decision.
(i) Each salary arbitration decision must be issued by fax and e-mail to each of the parties within forty-eight (48) hours of the close of the hearing.
(ii) The decision of the Salary Arbitrator shall establish:
(A) the term of the SPC, based upon the Player's or Club's election of a one or two year SPC, as set forth in its brief and as consistent with this Article;
(B) the Paragraph 1 NHL Salary to be paid to the Player by the Club for the season(s) in respect to which the arbitration is conducted;
(C) the inclusion or otherwise of a Minor League clause (or clauses) and the amount of Paragraph 1 Minor League Salary to be paid under each of the season(s) in respect to which the arbitration is requested;
(D) a brief statement of the reasons for the decision, including identification of any comparable(s) relied on.
(o) Expenses.
Each party shall be responsible for its own expense of participation in the arbitration. The cost of the arbitration proceedings, including the Salary Arbitrator's fees (whose fees for each day such Arbitrator performs salary arbitration services for the parties shall, in no event, exceed the Arbitrator's daily rate (e.g., an Arbitrator who both hears a case on the same day he is reading briefs for another case shall only be paid his daily rate for such day, not two (2) times his daily rate)) and expenses, shall be shared equally among the parties.
(p) Communications with the Salary Arbitrator.
Only the NHLPA and/or the League may communicate with the Salary Arbitrator. Copies of all written communications sent to the Salary Arbitrator in connection with an arbitration proceeding shall immediately be sent to the other parties in the case. There shall be no ex parte oral communications with the Salary Arbitrator in connection with an arbitration proceeding unless previously agreed to by the NHLPA and the League.
(q) Publicity.
The parties shall not publicize the substantive aspects of any arbitration proceeding until the decision has been issued.
12.10 Walk-Away Rights for Player-Elected Salary Arbitration.
(a) If a Club has elected to arbitrate a one-year SPC, and the award issued is for $1,042,173 or more per annum, then the Club may, within forty-eight (48) hours after the award of the Salary Arbitrator is issued (or, if a Club has any other Player still eligible for salary arbitration at that time and for whom a decision has not been rendered by a Salary Arbitrator at that time, and the Club still has a walk-away right available to it in such League Year pursuant to paragraph (c) below, forty-eight (48) hours after the award of the Salary Arbitrator for such other Player is issued or that Player's arbitration case is settled), notify the Player or his Certified Agent, if any, the NHLPA and the NHL in writing, in accordance with Exhibit 3 hereof, that it does not intend to tender to the Player an SPC based on the award as determined by the Salary Arbitrator. Upon receipt of that notice, the Player shall automatically be deemed to be an Unrestricted Free Agent.
(b) If a Club has elected to arbitrate a two-year SPC and the award issued is for $1,042,173 or more per annum, then the Club may, within forty-eight (48) hours after the award of the Salary Arbitrator is issued (or, if a Club has any other Player still eligible for salary arbitration at that time and for whom a decision has not been rendered by a Salary Arbitrator at that time, and the Club still has a walk-away right available to it in such League Year pursuant to paragraph (c) below, forty-eight (48) hours after the award of the Salary Arbitrator for such other Player is issued or that arbitration case is settled), notify the Player or his Certified Agent, if any, the NHLPA and the NHL in writing, in accordance with Exhibit 3 hereof, that it does not intend to tender to the Player a two-year SPC based on the award as determined by the Salary Arbitrator. Upon receipt of that notice, the Player and the Club shall enter into a one-year SPC providing for the compensation set forth in the award and the Player will automatically be deemed to be an Unrestricted Free Agent at the conclusion of that one-year SPC, subject to the provisions of paragraph (c) below.
(c) Notwithstanding the provisions of paragraphs (a) and (b) above, a Club may exercise the walk-away rights referred to therein not more than one (1) time in a League Year in which the Club has only one (1) salary arbitration award, one (1) time in a League Year in which the Club has two (2) salary arbitration awards, two (2) times in any League Year in which the Club has three (3) salary arbitration awards, two (2) times in any League Year in which the Club has four (4) salary arbitration awards, three (3) times in any League Year in which the Club has five (5) salary arbitration awards and so on. If a Club exercises its walk-away right with respect to a two-year award, the walk-away right shall be deemed to be exercised in the first year of the two-year SPC.
(d) The dollar amount of $1,042,173 set forth in each of paragraphs (a) and (b) above, shall be increased on an annual basis at the same percentage rate of increase as the Average League Salary, with the commencement of the 2007/08 League Year being the first year such increase shall take effect. By way of example, if the Average League Salary on June 30, 2007 has increased by ten (10) percent from the Average League Salary on June 30, 2006, then the figure of $1,042,173 stated in paragraphs (a) and (b) above, shall be increased by ten (10) percent on June 30, 2007, and the ability of a Club to walk-away from an arbitration award rendered after June 30, 2007, shall be adjusted accordingly. For each League Year thereafter, a similar adjustment shall be made.
(e) No Club shall be entitled to walk away from any award in a Club-elected salary arbitration.
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