Dear Gary,

This is in reply to your most recent letter.

1. Your claim that the Clubs "cannot afford" our proposal is based on your hypothetical fear of what would happen "if every team spent to the $49 million level the Players have proposed". The notion that "every Club" will spend at the $49 million level is contradicted by years of actual payroll experience under the old CBA system and by Exhibit 12 of your December 14 document (attached for your recollection), in which you projected 24 teams well below the $49 million level after the rollback. Further, this experience is based on an environment without revenue sharing, taxes on team payrolls and the numerous new system restrictions.
2. Based on your own calculations from Exhibit 12, over 21 Clubs are spending significantly less than your team payroll limit number of $42.5 million. I am at a loss to understand how you suggest your offer earlier today represents a $75 million dollar increase when it only impacts the spending of nine teams!

You will receive nothing further from us.

Regards,
NATIONAL HOCKEY LEAGUE
PLAYERS' ASSOCIATION
Robert W. Goodenow
Executive Director & General Counsel

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