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The big winners of Swiss hockey will soon be on their necks. Image: KEYSTONE
Eismeister Zaugg
Swiss hockey before the biggest revolution: a salary cap of 2024
The club bosses have been dreaming of a “salary cap” for years. Now the league is working on concrete implementation for the first time. Ideally, the upper salary cap will be decided in August and will be fully implemented for the 2024/25 season after a three-year transition period.
The “wage cap” is a serious intervention in the free market economy. The league prescribes how much money they can spend on wages. The dispute between the NHL and the players union was so violent when the salary cap was introduced that it was not played for an entire season (2004/05). The club bosses have prevailed. In the NHL, the salary cap is set from year to year. Clubs can only pass a certain percentage (about 60 percent) of revenue to players as wages.
Let’s go to hell: we have to save him. Image: KEYSTONE / TI-PRESS
The corona virus crisis has finally made player salaries too high in our National League an issue. Two measures are now being prepared to cut wages in concrete terms. An increase in the number of foreigners and the “salary cap”. Actually, the new regulation for foreigners should be decided at the next league meeting on June 17 for the 2021/22 season. Now it is clear that time is running out. The new calendar: regulation of foreigners and the salary cap will be decided at another league meeting in August.
7 million as upper limit
What does the “salary cap” look like? There will be an upper and lower limit. Therefore, it stipulates how much a club can spend on wages. But also how much does a club have to spend at least on wages. This ensures competitiveness.
The upper limit is not defined as a percentage of income. But with a maximum amount. The upper limit is expected to be CHF 7 million. The lower limit of 5 million. 5 million already spend all the clubs on salaries. So there’s no problem. On the other hand, several clubs have to lower wages if they want to reach this limit. Anyone who can’t do it will growl at a so-called “luxury tax.” So for a lien in a pot, which is then divided between the clubs that adhere to the upper limit.
The league will have to do its part to control wages. Image: KEYSTONE
So far, the strongest argument against introducing a wage ceiling has been a lack of control. Well, in case of need, the club bosses remember that control is possible. Each player contract must be submitted to the league and the total salary will be displayed.
But what happens if a club makes a financial contribution to a player in addition to the ordinary contract presented to the league, for example, through a mandate with another company that no one can control? In fact, that would be “fraud” within the meaning of the new regulation. But now an incredibly simple, but plausible argument is being made. A senior official puts it this way: “I just can’t imagine that personalities like Walter Frey, Hans-Peter Strebel, Peter Jakob, Gaudenz Domenig, Marco Werder or Marc Lüthi would tolerate such crafty eggs.”
At first glance, this may sound naive. But this is exactly how it should be. There is a reason why IIHF President René Fasel, the highest ranking hockey official in the world, says: “The salary cap is a great opportunity for Swiss ice hockey and if it is not successful now, when?”
What foreign regulation is coming?
The league meeting in August should have a concrete proposal to vote. The introduction is possible with a simple majority of the season after the next (2021/22), but it requires a transition period of two to three years. The “salary cap” will probably only be legally binding for the 2024/25 season. The reason for this is clear: In terms of legal certainty (which belongs to each constitutional state), existing contracts should be respected as much as possible and clubs need a transition period to gradually adjust salaries as part of team planning. . There will be no conflict with the players union as in the NHL. Our “players union” is a ridiculous operetta organization that can be safely ignored in this matter.
The salary limit will make the league more balanced. Image: KEYSTONE
The comprehensive reform also includes a new regulation for foreigners. The objective is to increase the number of foreign players admitted (previously four per game). It has not yet been possible to formulate a concrete proposal. Hardliners want complete openness: no more restrictions on the commitment of foreign players, including the abolition of the “Swiss license.”
Pragmatists see a smoother opening with an increase from four to eight foreigners and the abolition of the Swiss license (that is, foreign players who do not charge the foreign contingent with a Swiss license).
The sensible ones want to keep the previous regulation. Actually, the regulation of foreigners should be voted on at the next league meeting on June 17. It is now becoming apparent that this agenda item will only be voted on at the league meeting in August. The league meeting on June 17 should be more or less about discussing our biggest hockey revolution.
However, it is clear to all involved that a comprehensive reform of the league with the centerpiece of the “salary cap” is only possible as long as the shock effect of the virus crisis persists. Time is running out.
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