The NHL arbitration process is unique in comparison to other professional sports leagues. Arbitration under Article 12 of the Collective Bargaining Agreement (CBA) allows for every eligible NHL free agent, or in some instances, NHL teams, to file for salary arbitration in front of a neutral third party.[1] [2] However, the arbitration process is limited to restricted free agents who have met specific criteria. Players must meet different requirements depending upon the age at which they sign their professional contracts. The older a player becomes, the less professional experience the player needs to be eligible for salary arbitration. Players must file for arbitration before a specific deadline, even if they intend to settle and come to an agreement on a salary before the arbitration process begins.[3] In the eyes of most players, the arbitration process is normal and is “a way to ensure that they get a reasonable salary in a timely fashion.”[4] However, if the player does not file for arbitration in time, the team may elect to file on the player’s behalf. But teams are limited to opting in only two of their players per offseason.[5] Most players, however, rarely participate in salary arbitration proceedings. Rather, the player’s agent and the team’s general manager will negotiate their salaries before arbitration proceedings begin.[6] However, there are instances where arbitration does occur. When this unlikely event does happen, things can get messy.
Most recently, Jeremy Swayman, goalie for the Boston Bruins, opted for salary arbitration when negotiations with the Bruins did not go well.[7] In a docuseries on Amazon Prime titled Faceoff: Inside the NHL, Swayman details the arbitration process he endured over the 2023-2024 off season with the Boston Bruins. Specifically, Swayman discusses the Bruins’ arguments for a lower salary.[8] Moreover, Swayman mentioned how he did not forget what the organization said about him, only furthering his incentives to play well and prove the Bruins wrong.[9]
During the arbitration proceeding, the Bruins reasoned Swayman did not deserve the salary he was advocating for because his .901 save percentage made him untrustworthy in the playoffs. For the 2023-2024 season, the arbitrator awarded Swayman $3.475 million on a one-year deal. From the fallout of the previous season’s arbitration, Swayman made it known that he would not be going through the process again. Many say that the Bruins could have avoided this process if the Bruins had chosen to give Swayman a two-year award, rather than opting for the one-year award. Moreover, this would have kept Swayman in Boston for another year, for the same price.[10] Before the 2024 season began, the Bruins and Swayman had not reached a salary agreement.[11]
In efforts to negotiate a long-term deal with the team, Swayman did not attend training camp. In the NHL, there is a December 1st deadline for players to sign a deal or sit out for the remainder of the season.[12] With this deadline approaching rapidly, the Bruins had a major decision to make. On October 6, 2024, the Bruins signed Swayman to an eight-year contract worth $66 million. This new long-term deal nearly tripled Swayman’s yearly average, sitting at $8.2 million over the course of the next eight seasons. [13] Could the Bruins have avoided this situation by having a fair negotiation process with Swayman and his agent? Probably. But now, to keep their starting goalie within the organization, their hands were forced to pay the price. Swayman and the Bruins arbitration process will be a lesson for other teams around the NHL to learn from. Keep your valued players close, pay them what they deserve, and most importantly, watch what you say during arbitration, as you will surely pay the price in the end.
[1]Shayna Goldman, How does NHL arbitration work? What to know about the process that almost never happens, The Athletic (Aug. 9, 2022) https://www.nytimes.com/athletic/3487717/2022/08/09/nhl-arbitration/?login=ml&auth=login-ml.
[2] Id. (quoting Assistant General Manager of the Carolina Hurricanes, Eric Tulsky).
[3] Id.
[4] Id. (quoting Eric Tulsky).
[5] Id.
[6] Id.
[7] Nick Goss, Swayman sheds light on 2023 arbitration process in new NFL docuseries, NBS Sports Boston (Oct. 3, 2024) https://www.nbcsportsboston.com/nhl/boston-bruins/jeremy-swayman-2023-arbitration-nhl-amazon-doc/653861/.
[8] Id.
[9] Nick Howat, Jeremy Swayman Kept List of Bruins Criticism – And Proved Them Wrong, Breakaway (Oct. 3, 2024) https://www.si.com/onsi/breakaway/news-feed-page/jeremy-swayman-kept-list-boston-bruins-criticisms-proved-wrong.
[10]Fluto Shinzawa, The Bruins’ $3.475 million Jeremy Swayman blunder, The Athletic (Oct. 2, 2024) https://www.nytimes.com/athletic/5811013/2024/10/02/bruins-jeremy-swayman-arbitration-blunder/#.
[11] Howat, supra note 9. (The club may either elect prior to the arbitration hearing whether it wishes to have a one year or a two-year salary award).
[12] ESPN News Services, Bruins sign goalie Jeremy Swayman to 8-year, $66M contract, ESPN (Oct. 6, 2024) https://www.espn.com/nhl/story/_/id/41640179/bruins-sign-goalie-jeremy-swayman-8-year-66m-contract.
[13] Id.
[14] https://thehockeynews.com/nhl/boston-bruins/latest-news/new-jeremy-swayman-contract-offer-update-revealed.
Alex Brockhuizen (’25) is pursuing her JD at the University at Buffalo School of Law, with a concentration in Sports Law. After graduation, she will be working at Bond, Schoeneck & King PLLC. At UB, Alex is co-director of the Labor and Employment Law Society and Treasurer of the Buffalo Sports Law and Entertainment Law Society. She is also Business Editor of the Buffalo Law Review, where she was deemed a finalist of the Note and Comment Competition her 2L year. Alex is also a former two-sport athlete at Elmira College.
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